Sterlingsum

Free debt advice in the UK

If debt is getting on top of you, you are not alone and there is free help. This page explains where to find it, which debts to deal with first, and what to watch out for.

Get free, impartial help first

The organisations below give debt advice at no cost. They can look at your whole situation, talk to the people you owe, and tell you which options suit you. You do not need to have a plan before you contact them.

Rules differ across England and Wales, Scotland and Northern Ireland. The services above can tell you which options apply where you live.

Which debts to deal with first

Not all debts are equally urgent. Priority debts are the ones where missing payments can have serious consequences, such as losing your home, having your energy cut off or facing court action. Advisers usually suggest sorting these out before other debts.

  • Rent or mortgage payments
  • Council Tax
  • Gas and electricity
  • Court fines, child maintenance and income tax or other amounts owed to HMRC
  • TV Licence
  • Overpaid benefits owed to the DWP

Credit cards, store cards, overdrafts, loans and catalogue debts are usually non-priority. They still matter, but a missed payment normally has less immediate impact. An adviser can help you decide how to split your money.

Steps you can take today

  1. List what you owe. Write down each debt, who it is with, the amount and the minimum payment. Letters and online accounts will help.
  2. Work out your income and spending. Our monthly budget helper can give you a clear picture of what is coming in and going out.
  3. Open your post and answer letters. Ignoring letters can make things worse. If you cannot pay, contacting the creditor early usually gives you more options.
  4. Talk to a free adviser. Use one of the services above rather than a company that charges.
  5. Check you are getting everything you are entitled to. Benefits and support are often unclaimed. Citizens Advice can help you check.

Breathing Space

In England and Wales, the Debt Respite Scheme, known as Breathing Space, gives you up to 60 days of protection from creditors while you get advice. During that time most creditors cannot take enforcement action or add interest and charges, though you still need to keep up with your ongoing bills. You apply through a debt adviser. Read the details on GOV.UK.

Common ways to deal with debt

A free adviser can explain which of these might fit. Each has pros, cons and effects on your credit file.

  • Talking to creditors about a reduced or paused payment arrangement.
  • Debt Management Plan (DMP): one affordable monthly payment shared between your creditors, not legally binding.
  • Individual Voluntary Arrangement (IVA): a formal agreement to repay part of your debts over a set period.
  • Debt Relief Order (DRO): for people with low income and few assets, where qualifying debts can be written off after a set period.
  • Bankruptcy: a formal route that can write off debts, with serious consequences, so it is usually a last resort.

Scotland has its own versions, such as Protected Trust Deeds and the Minimal Asset Process. MoneyHelper explains the options in each part of the UK.

Watch out for companies that charge

Free advice is available, so you should never need to pay just to get help with debt. Be wary of firms that cold-call you, promise to write off your debts, or collect your details through social media adverts and then pass them on. Some charge large fees. The Financial Conduct Authority has advice on unauthorised or unsuitable debt advice, including how to check that a firm is authorised.

If you are struggling to cope

Money worries can take a toll on your mental health. If you feel overwhelmed, speak to your GP or someone you trust. If you are in crisis, you can call Samaritans free on 116 123 at any time.

Questions people ask

Is debt advice really free?

Yes, with the charities and services listed above. They are funded so you do not have to pay. If a company asks for an up-front fee for advice, stop and check them against the Financial Conduct Authority's register first.

Will getting debt advice affect my credit score?

Talking to an adviser does not affect your credit file. Some solutions, such as a debt management plan or IVA, can be recorded on it. An adviser will explain the effects before you choose.

Will the adviser judge me?

No. Debt advisers help people from all walks of life, and what you tell them is confidential. Many people get into debt after a job loss, illness, relationship breakdown or a rise in living costs.

Does Sterlingsum give debt advice?

No. Sterlingsum is an information site and is not authorised to give debt advice. We link to organisations that are. We do not receive payment from any of the services listed on this page.

Where to learn more