If debt feels like it is getting out of hand, you are not alone. Many people in the UK carry more debt than they feel comfortable with, and the pressure of managing multiple repayments can make it hard to know where to start.
Free, confidential debt advice is available and is usually the safest first step before making any financial decisions.
What has changed in UK debt help?
Three significant changes have taken place in recent years that affect what help is available:
- Breathing Space (May 2021): The Debt Respite Scheme, commonly called Breathing Space, gives people a period of legal protection from creditor action while they get debt advice. Interest and charges are frozen for up to 60 days. A mental health crisis moratorium is also available with no time limit for those receiving mental health crisis treatment. (Source: UK Government / MoneyHelper)
- FCA Consumer Duty (July 2023): Lenders regulated by the Financial Conduct Authority are now required to deliver good outcomes for consumers, including those in financial difficulty. This means firms should be proactive in offering forbearance options to customers who are struggling. (Source: FCA)
- Debt Relief Order threshold increase (June 2024): The debt threshold for a Debt Relief Order (DRO) rose from £20,000 to £30,000, making this option available to more people with lower income and assets. The asset limit also increased. (Source: UK Government / Insolvency Service)
Why does this matter?
These changes have widened the safety net for people in debt. More people now qualify for a DRO. Breathing Space gives people time to think without interest piling up. And lenders face clearer obligations to treat people fairly.
Knowing your options before contacting a creditor, or before taking out more credit, can make a real difference to the outcome.
Risks and warnings
Be careful if you are considering taking out a new loan or credit card to cover existing debts. This approach can increase what you owe in total, even if the monthly payments feel more manageable at first.
Priority debts come first. Rent, mortgage, council tax, and energy bills are priority debts. Falling behind on these can lead to eviction, disconnection, or enforcement action. If you are behind on priority debts, address these before unsecured borrowing.
Delay can make things worse. Ignoring letters or calls from creditors does not make debts go away. Unaddressed debts can lead to default notices, county court judgments (CCJs), and in some cases enforcement action. Acting early gives you more options.
Debt solutions have long-term effects. Options such as a Debt Relief Order, Individual Voluntary Arrangement (IVA), or bankruptcy stay on your credit file for several years. A free debt adviser can walk you through the consequences of each option before you commit to anything.
Be wary of fee-charging debt management companies. Free debt help is available from charities. Paying fees to a commercial debt management company is rarely necessary and reduces the money available to pay your creditors.
Who may be affected?
This update is relevant if you:
- Are missing payments or worried you soon will be
- Are using credit cards or overdrafts to cover everyday essentials
- Have received a default notice or a county court judgment
- Are behind on rent, mortgage, or council tax
- Are considering a debt consolidation loan or a balance transfer to manage existing debts
If you are up to date with repayments and simply looking to reduce your costs, the options available to you are wider. Even so, checking what is on your credit file can be a useful starting point.
Free debt help, where to call
If you are struggling, these organisations offer free, confidential advice:
- StepChange Debt Charity: 0800 138 1111 (freephone, including mobiles)
- National Debtline: 0808 808 4000 (freephone, including mobiles)
- MoneyHelper: 0800 138 7777 (freephone, including mobiles)
You can also speak to Citizens Advice for free debt guidance in person or online.
None of these services charges a fee. You do not need to be in a crisis to contact them. Speaking to an adviser early generally gives you more options, not fewer.
What to read next
- Debt consolidation: what it is and how it works
- Getting financial advice: where to start
- Debt help: a full guide to your options (guide coming soon)
Sources
- MoneyHelper, Breathing Space scheme guidance
- UK Government / Insolvency Service, Debt Relief Order threshold changes (June 2024)
- Financial Conduct Authority, Consumer Duty (PS22/9, published July 2022, effective July 2023)
- StepChange Debt Charity, debt solutions and free advice
- National Debtline, free debt advice service
- Citizens Advice, debt and money guidance