Dealing With Debt — A Practical Starting Guide
Debt problems affect millions of people in the UK. The most important first step is to get free advice — not to make minimum payments and hope things improve. Properly managed, most debt situations have a solution. This guide explains where to start, how to prioritise debts, and what options are available to you.
Get advice about your specific situation
Ash is a free UK guidance assistant. Ask about your rights, get step-by-step guidance, and generate a formal letter if you need one.
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Priority vs non-priority debts
Not all debts are equal. Some have more serious consequences if you don't pay them. Always deal with priority debts first:
- Rent or mortgage arrears (risk of eviction)
- Council tax (bailiffs and prison risk)
- Gas and electricity (disconnection)
- TV licence (criminal prosecution)
- Magistrates court fines
- Child maintenance
- Income tax / HMRC debts
- Credit cards
- Overdrafts
- Personal loans
- Store cards
- Payday loans
- Money owed to friends/family
- NHS charges
Get free debt advice first
Before speaking to creditors or agreeing to any payment plan, get free advice from one of these trusted services:
- ✓StepChange Debt Charity — stepchange.org or 0800 138 1111 (free, confidential, largest debt charity)
- ✓Citizens Advice — citizensadvice.org.uk or 0800 144 8848
- ✓National Debtline — nationaldebtline.org or 0808 808 4000
- ✓Money Advice Service — moneyhelper.org.uk
- ✓Christians Against Poverty — capuk.org (face-to-face support)
Key debt solutions explained
An informal arrangement where you make reduced payments to creditors through a charity or debt management company. No legal status. Interest may continue.
A formal insolvency solution. You pay what you can afford over 5–6 years and the rest is written off. Requires approval from creditors holding 75%+ of your debt. Insolvency practitioner required.
For when debts are unmanageable and you have few assets. Most debts are written off. Restrictions apply for 12 months. Not suitable for everyone. See our full Bankruptcy guide.
For those with low income, few assets, and debts under £30,000. A 12-month moratorium on debt followed by write-off. Administered by authorised advisers — you cannot apply directly.
60 days of legal protection from creditor action, interest, and charges. Gives you time to seek advice and set up a debt solution. See our full Breathing Space guide.
Scotland's equivalent of a DMP, but with legal protection. All interest and charges freeze. See our DAS guide.
Your rights when dealing with creditors
- ✓Creditors must follow the FCA's rules on treating customers fairly — including those in financial difficulty
- ✓You can request a breathing space period from creditors while you seek advice
- ✓Creditors cannot harass you or contact you at unreasonable times
- ✓If you have a mental health condition, you may be eligible for extra protections under the Mental Health breathing space
- ✓You can ask creditors to freeze interest and charges — many will agree if you show you're seeking help
- ✓A creditor cannot take your goods without a court order (except for specific debts like council tax, where bailiffs may have different powers)
First steps to take right now
Get advice about your specific situation
Ash is a free UK guidance assistant. Ask about your rights, get step-by-step guidance, and generate a formal letter if you need one.
Talk to Ash — it's freeNo sign-up · No account · Works for England, Scotland, Wales & Northern Ireland