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.
If you have reached the point where you cannot make your debt payments, it can feel frightening and hopeless. But there are clear, practical steps you can take — and help is available. This guide explains what to do when paying your debts is no longer possible.
First: Prioritise Your Essential Bills
If you cannot pay everything, do not spread your money thinly across all your debts. Instead, prioritise the bills that keep you and your family safe and housed.
Pay these first, in this rough order: rent or mortgage, council tax, gas and electricity, food. If you miss these, the consequences are immediate and serious.
Stop Non-Essential Payments Temporarily
If you are in a genuine crisis, it is acceptable to pause payments on non-priority debts (credit cards, personal loans, overdrafts) while you seek advice. This is not a long-term strategy, but it can buy you time to get help.
Let your creditors know you are seeking debt advice. Many will temporarily hold collection activity if they know you are getting professional help.
Contact a Free Debt Adviser Immediately
This is the most important step. Free, independent debt advice is available in the UK from several organisations:
StepChange Debt Charity offers a free online debt advice tool and telephone support
Citizens Advice provides face-to-face and telephone advice
National Debtline offers free telephone advice and self-help resources
A debt adviser will review your situation, help you build a budget, and recommend the best course of action — whether that is an informal arrangement or a formal debt solution.
Understand Your Formal Options
If you genuinely cannot repay your debts, there are legal solutions designed for this situation:
Debt Relief Order (DRO)
A DRO is designed for people who have low income, low debt (under a set threshold), and few assets. It freezes your debts for 12 months, and if your situation has not improved, they are written off.
Individual Voluntary Arrangement (IVA)
An IVA is a legally binding agreement with your creditors. You make affordable monthly payments for a set period (usually 5–6 years), and any remaining debt is written off at the end.
Bankruptcy
Bankruptcy is a legal process that writes off most debts. It has serious consequences — including potential loss of assets and impact on your credit file — but for some people, it is the right option. Always get advice before considering bankruptcy.
Do Not Use High-Cost "Quick Fix" Services
Be wary of companies that charge upfront fees for debt advice or promise to "write off your debts" quickly. Some commercial debt companies charge significant fees for services that are available free from charities.
Free debt advice is a right, not a luxury. If anyone pressures you to pay for advice, walk away and contact one of the free organisations listed above.
Frequently asked questions
Will I go to prison if I cannot pay my debts?▾
Can my creditors take my home?▾
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.
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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.