How to Deal With Your Debts Yourself
If you can no longer keep up with your credit commitments, it pays to act quickly — and there are plenty of options to help you get back in control.
See if you qualifyWhat’s the best debt solution for me?
There’s no single answer — the right solution depends on the size and type of your debts, whether you own your home, and how much you can afford to repay. You can compare every option on the official GOV.UK debt options page.
Start with a budget
Before choosing a solution, work out exactly what’s coming in and going out each month. The free MoneyHelper budget planner is a good place to start.
Three of the most common debt solutions
Debt Management Plan (DMP)
A Debt Management Plan could suit you if you owe unsecured debts such as credit cards and loans and can afford a regular monthly payment. It rolls your debts into one affordable payment, and creditors are often asked to freeze interest and charges. It’s informal and flexible, though creditors aren’t obliged to agree.
Individual Voluntary Arrangement (IVA)
You could consider an IVA if you owe more than £7,000 of unsecured debt to two or more creditors and can afford around £100 a month. It’s legally binding and runs for five or six years, but it gives you protection from creditors, you can usually keep your home, and the qualifying debts in the arrangement are written off at the end. See how to apply or compare an IVA vs a DMP.
Bankruptcy
Modern bankruptcy has shed much of its old stigma and can be viable for people with serious debts and few assets. You apply through GOV.UK, and our team can talk you through whether it’s right for you first.
Other ways of dealing with debt
- A Debt Relief Order (DRO) — for people with lower debts, little spare income and few assets
- An Administration Order
- Consolidating your debts into one loan
- Full and final settlements
- A Breathing Space (60 days’ protection while you get advice) — see GOV.UK
How do I get started?
Get in touch and we’ll talk through your situation, explain the options that fit, and — if an IVA is right for you — help you take the next steps. There’s no obligation and everything is confidential.
Free, confidential advice with no obligation.
Free, independent debt advice is also available from MoneyHelper, StepChange, National Debtline and Citizens Advice.