UK debt solutions explained
From informal repayment plans to formal legal solutions, understand the options available for dealing with debt in the UK — and which might be right for your situation.
There is no single "right" way to deal with debt. The best solution depends on how much you owe, your income, whether you own a home, and your future plans. Some solutions are informal and flexible, while others are formal legal processes with long-term consequences.
Always speak to a free, independent debt adviser before committing to any solution. They will review your circumstances and recommend the most suitable option — at no cost to you.
Debt Management Plan (DMP)
A Debt Management Plan is an informal arrangement to repay unsecured debts at a monthly rate you can afford. Learn how DMPs work, who they suit and what to consider.
Learn more →FormalIndividual Voluntary Arrangement (IVA)
An IVA is a legally binding agreement to repay a portion of your debts over a fixed period. Understand how IVAs work, eligibility, costs and consequences.
Learn more →FormalBankruptcy
Bankruptcy is a legal process that writes off most debts when you cannot repay them. Understand how bankruptcy works in the UK, the consequences and alternatives.
Learn more →FormalDebt Relief Order (DRO)
A Debt Relief Order is a formal solution for people with low income, low debt and few assets. Learn how DROs work, eligibility criteria and what happens to your debts.
Learn more →FormalAdministration Order
An Administration Order is a court-based arrangement for people with multiple debts and a county court judgment. Learn how it works, eligibility and alternatives.
Learn more →Legal ProtectionBreathing Space (Debt Respite Scheme)
Breathing Space is a government scheme giving you legal protection from creditor action for up to 60 days while you get debt advice. Learn how it works and who qualifies.
Learn more →InformalDebt Consolidation
Debt consolidation combines multiple debts into a single loan or payment. Understand the pros and cons, when it makes sense and when to avoid it.
Learn more →This page provides general information only. It is not personalised financial or legal advice. Your situation is unique — please seek guidance from a qualified, FCA-authorised debt adviser before making decisions about your debts.
How to choose the right solution
The right debt solution depends on your individual circumstances. Key factors include your total debt level, your disposable income (what is left after essential spending), whether you own property, and whether your financial difficulties are temporary or long-term.
A free debt adviser at StepChange, Citizens Advice or National Debtline will conduct a full assessment and recommend the most appropriate option. They can also help you set up the solution — often at no cost.
Related guides
How to Deal with Debt: A Practical Starting Guide
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How to Make a Debt Budget: A Step-by-Step Guide
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What to Do If You Cannot Pay Your Debts
Practical steps to take if you have no money to pay your debts — from prioritising essential bills to seeking free advice and formal solutions.
How to Deal with Creditors: Communication and Negotiation
Practical advice on communicating with creditors, negotiating affordable repayments, and understanding your rights when dealing with the companies you owe.
Debt Collection in the UK: What You Need to Know
Understand how debt collection works in the UK, what debt collectors can and cannot do, and how to protect yourself if you are being chased for a debt.
Debt Management Plan (DMP)
A Debt Management Plan is an informal arrangement to repay unsecured debts at a monthly rate you can afford. Learn how DMPs work, who they suit and what to consider.
Individual Voluntary Arrangement (IVA)
An IVA is a legally binding agreement to repay a portion of your debts over a fixed period. Understand how IVAs work, eligibility, costs and consequences.
Bankruptcy
Bankruptcy is a legal process that writes off most debts when you cannot repay them. Understand how bankruptcy works in the UK, the consequences and alternatives.
Debt Relief Order (DRO)
A Debt Relief Order is a formal solution for people with low income, low debt and few assets. Learn how DROs work, eligibility criteria and what happens to your debts.
Administration Order
An Administration Order is a court-based arrangement for people with multiple debts and a county court judgment. Learn how it works, eligibility and alternatives.
Breathing Space (Debt Respite Scheme)
Breathing Space is a government scheme giving you legal protection from creditor action for up to 60 days while you get debt advice. Learn how it works and who qualifies.
Debt Consolidation
Debt consolidation combines multiple debts into a single loan or payment. Understand the pros and cons, when it makes sense and when to avoid it.
You do not have to face debt alone
Free, independent debt advice is available right now from trusted UK organisations. Speaking to a trained adviser is the first step towards getting back on track.