Free debt help UK: where to go, Breathing Space, DMPs, DROs and IVAs
Where to get free, confidential debt advice in the UK, and the main debt solutions explained in plain English: Breathing Space, debt management plans, Debt Relief Orders, IVAs and bankruptcy.
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Signs it is time to get help
- You are paying one debt with another, or with your overdraft
- You only ever pay the minimum on your cards
- You are behind on rent, council tax or energy bills
- You are getting letters from debt collectors or bailiffs
- Money worries are affecting your sleep, work or health
The earlier you get advice, the more options you have.
Where to get free debt advice
- StepChange: online and phone debt advice, and free debt management plans
- National Debtline: free phone and online advice for England, Wales and Scotland
- Citizens Advice: face-to-face help through local offices, as well as online and phone
All three are free. Be careful with companies that advertise "debt help" and charge fees, or that push you towards an IVA. Free charities can set up the same solutions without the fees.
The main debt solutions
These are for England and Wales. Scotland and Northern Ireland have their own versions, with different rules.
Breathing Space
A pause of up to 60 days. Most creditors must stop adding interest and charges, and stop enforcement action, while you get advice. You apply through a debt adviser. There is a separate, longer version for people getting mental health crisis treatment.
Debt management plan (DMP)
An informal deal where you make one affordable monthly payment, shared between your creditors. Charities like StepChange set these up free. Creditors often freeze interest, but they do not have to. It lasts until the debt is paid.
Debt Relief Order (DRO)
For people with low income and few assets. Your debts are usually written off after 12 months. To qualify you need:
| Rule | Limit |
|---|---|
| Qualifying debts | £50,000 or less |
| Spare income after essentials | £75 a month or less |
| Assets | £2,000 or less |
| A car | Worth under £4,000 (not counted in assets) |
There is no fee. You apply through an approved intermediary, usually a debt charity. Source: National Debtline.
Individual Voluntary Arrangement (IVA)
A legal agreement to pay what you can afford for a set time, usually five or six years, after which the rest is written off. It is set up by an insolvency practitioner, who is paid fees out of your payments. It is binding once enough of your creditors agree. Get free advice before you agree to one.
Bankruptcy
A legal way to write off debts you cannot pay. It costs £680 to apply in England and Wales. Your assets, possibly including your home, can be used to pay creditors, and there are restrictions on you, usually for a year. Source: GOV.UK: bankruptcy fees.
What these do to your credit file
DMPs, DROs, IVAs and bankruptcy all stay on your credit report for six years. That makes borrowing harder for a while. But if your debts are already in arrears, your file is usually already affected, and a solution gives you a fixed end date.
Common questions
Is debt advice really free?
From charities like StepChange, National Debtline and Citizens Advice, yes. They are funded so you do not pay. A debt management plan through them is free too.
Will my employer find out?
Not from a DMP or Breathing Space. IVAs, DROs and bankruptcy are recorded on the public Individual Insolvency Register, but most employers do not check it. Some jobs in finance or law have rules about insolvency, so mention your job to your adviser.
Can bailiffs take my things?
Bailiffs, also called enforcement agents, can only act on certain debts and must follow strict rules. Speak to a debt adviser straight away if you get a letter about enforcement.
This is general information, not personal tax or financial advice. Tax rules change and depend on your circumstances, so check GOV.UK or speak to an accountant before acting.