Dealing with debt: repayment options and support

Struggling with bills or repayments can be stressful. The options depend on what you owe, what you can afford and where you live. There is no single quickest or best solution for everyone.

Thrifty Family shares general information. We do not provide debt advice, recommend debt solutions or assess which option is suitable for you. Thrifty Family is a trading name of MoneyNerd Limited.

For free debt advice, use MoneyHelper’s debt advice locator to find a service for your part of the UK. A debt adviser can check your income, essential spending, debts and personal circumstances before explaining your options.

Start with essential costs and urgent notices

A budget should allow for food, housing, energy, travel and other reasonable essential costs. Priority debts are those with particularly serious consequences if unpaid, rather than simply the highest interest rate. Rent or mortgage arrears, Council Tax or rates, energy arrears and some court fines need particular attention.

Court papers, eviction warnings and enforcement notices have deadlines. Seek prompt help rather than waiting for another demand. MoneyHelper’s bill prioritiser explains common priorities. Procedures and protections vary across the UK.

If there is no money left for repayments

An unaffordable payment plan or new loan can make the position worse. Tell the creditor that you are struggling and ask what support is available. A debt adviser can check benefits, grants, essential spending and options for people with little or no disposable income.

A Debt Management Plan normally needs a sustainable payment towards the debts it covers. Consolidation is new borrowing, not debt cancellation. It is not an automatic answer to having no spare income, and turning unsecured debt into borrowing secured on your home creates a repossession risk.

How the main options differ

The government’s debt-options guide is a useful starting point. Availability and eligibility differ in England and Wales, Scotland and Northern Ireland. These summaries explain broad differences, not which option you should choose.

Informal repayment arrangements: a creditor may agree reduced or temporary payments. Ask how interest, charges and your credit record will be treated. An arrangement does not automatically stop court action or cancel a balance.

Debt Management Plans: usually involve affordable payments towards non-priority unsecured debts. Free providers exist; commercial providers may charge fees. Creditors do not have to accept the plan or freeze interest, and a longer repayment period can increase the time and cost of repaying. Missed contractual payments may affect your credit file.

Individual Voluntary Arrangements: IVAs are formal arrangements available in England, Wales and Northern Ireland, with different procedures. They require creditor approval and an insolvency practitioner, involve fees, affect your credit record and appear on a public register. Payments and spending are restricted by the terms. Assets or home equity may be affected depending on the arrangement. How your home is treated and whether equity affects the duration depend on the proposal and the rules used. The 2025 IVA protocol has specific rules; other or older arrangements can differ. Failure can leave debts outstanding and may lead to bankruptcy. Only debts covered by a successfully completed arrangement can be discharged; joint borrowers may remain liable.

Debt Relief Orders and bankruptcy: these may deal with qualifying debts where the relevant conditions are met, but neither is a consequence-free way to erase all borrowing. Eligibility, excluded debts, restrictions and assets must be checked. Bankruptcy can put a home and other assets at risk; both can affect credit, employment or business activities and public records. DRO rules in England and Wales differ from Northern Ireland.

Scotland: options include the Debt Arrangement Scheme, protected trust deeds and bankruptcy (sequestration). A debt payment programme under DAS repays debts and has statutory protections if its conditions are met. A DAS debt payment programme is recorded on a public register and can affect access to credit. Repayment may take a long time. If the programme is revoked, creditor action can resume and interest and charges may become payable. Trust deeds and bankruptcy can affect assets, credit and public records, and involve fees or contributions where applicable. A protected trust deed can require income payments or sale of assets, including a home. Creditors can object to protection. Only included debts can be discharged after successful completion; failure may leave debts outstanding and lead to bankruptcy. Get advice from a service familiar with Scottish rules.

Paying more, saving or consolidating

Where essential costs, priority debts and required payments are covered, paying extra towards higher-interest borrowing can reduce interest. Check early-repayment charges and promotional-rate expiry dates. This does not establish that one method is suitable for every household.

It is not always sensible to use every pound of savings to repay a debt. An emergency buffer, benefit rules and the type and cost of the borrowing can matter. Compare a consolidation loan’s total cost, fees, term and security, rather than just its monthly payment. A lower monthly payment can mean paying more overall.

Debt collectors and older debts

A debt collector may act for a creditor or own a debt that has been sold. Ask for a clear account of the balance and the basis of any disputed claim. Misconduct does not automatically cancel a debt. Old debts may be affected by limitation or prescription rules, but payment, written acknowledgement and court action can change the position. Get advice before acknowledging or paying a debt you think is too old to enforce.

See our guide to dealing with debt collectors for the difference between collectors and enforcement agents.

Credit records, support and next steps

Arrears, defaults, court judgments and formal debt solutions can affect borrowing and credit records. Paying a debt does not guarantee an immediate score increase or removal of an accurate entry. Ask an adviser to explain the implications before agreeing to a solution.

If health, bereavement, disability or communication needs affect how you manage money, you can ask creditors or an adviser for adjustments. Share what you feel comfortable sharing. Keep copies of agreements and review them if your circumstances change.

What happens if you request an introduction

Thrifty Family does not provide debt advice, assess whether a debt solution is suitable for you or recommend one.

If you complete our form and agree to an introduction, we may share your details with The Debt Advice Service, a trading style of Pacific Financial Solutions Limited. If your enquiry is passed on, its team may contact you to understand your circumstances and discuss the options available. Completing our form does not mean you qualify for a particular debt solution.

Using Thrifty Family and making a debt enquiry are free. Advice from The Debt Advice Service is free and there is no obligation to proceed. Fees apply to some debt solutions, and your credit rating may be affected.

A debt solution may be administered by another provider or an insolvency practitioner. Ask who would provide it and what fees and terms would apply before agreeing.

MoneyNerd Limited may receive a payment from The Debt Advice Service if someone we introduce goes on to enter an IVA or debt management plan. The amount can differ between solutions. Thrifty Family does not make the recommendation.

MoneyNerd Limited (FRN 978681) is an Introducer Appointed Representative of Pacific Financial Solutions Limited (FRN 688034), trading as The Debt Advice Service, which is authorised and regulated by the Financial Conduct Authority.

You can also use MoneyHelper’s debt advice locator to find free, impartial debt advice. Our Privacy Policy explains how we use personal information.

Request an introduction to The Debt Advice Service

More information about dealing with debt