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If you’re struggling with debt, there are a range of solutions available. We can advise you on all of them. 

A debt management plan (DMP) is an informal agreement with your creditors giving you longer to pay back non-priority debts like credit cards, buy now pay later and personal loans.  

An individual voluntary arrangement (IVA) is a legally binding agreement for you to pay back your non-priority debts at a rate you can afford. It usually lasts five or six years. Afterwards, any remaining debt is written off.  

A debt relief order (DRO) may be suitable if you owe £50,000 or less and don’t have much spare income or own anything of value. A DRO lasts for a year. If your finances don’t improve during that time, your debts are written off.

Bankruptcy deals with debts you can’t pay, if the value of your possessions is less than the amount you owe. 

Debt consolidation involves using a loan to pay off your other debts. If you've got money worries, debt help may be a better option than borrowing more. 

Some debt solutions are free. Some aren’t. Most are likely to impact your credit score. We can talk you through everything you need to know. 

If you’re struggling to pay your debts, it’s a good idea to get debt advice. We can talk you through everything from better budgeting to formal debt solutions. 

You may be surprised at the range of help available. We’ll explain your options and help you decide on the best way forward. There’s no charge for our advice. 

We’ll look at the money you have coming in and your living expenses. From there, we’ll be able to work out what help is most appropriate. 

It may be that you’re not claiming all the benefits you’re entitled to. Or a formal debt solution, such as an individual voluntary arrangement or a debt relief order, may be more suitable.  

We’ll take into account your immediate money worries and your long-term financial wellbeing before making a recommendation. 

There are two types of bills: priority and non-priority. Priority bills are the ones that could have the most serious consequences if you don’t pay them.

They include: 

• gas and electricity bills 
• rent and mortgage
• secured loans 
• council tax 
• court fines 
• child support and maintenance 
• benefit overpayments 
• some essential hire purchase items e.g. kitchen appliances 

If you don’t keep up with priority debt payments you could lose your home, be visited by bailiffs, have your energy supply cut off or be forced onto a prepayment meter or lose essential hire purchase items.

Non-priority debts include things like: 

• credit cards 
• buy now pay later 
• personal loans 
• store cards 
• catalogue payments 
• overdrafts 
• money owed to family/friends  

The consequences of not paying non-priority debts are usually less serious than for priority debts. But creditors may still take action to try and get their money. They may pass your debt to a debt collection agency or try and get a county court judgment against you, among other things.

Breathing space gives you temporary protection from creditors you owe money to. If you’re struggling with debt, breathing space gives you time to get advice.  

It’s available in England and Wales. 

During breathing space: 

• most interest, fees and charges on your debt are frozen 
• creditors can’t chase you to pay your debts 
• enforcement action is paused 

There are two types of breathing space: 

• standard 
• mental health crisis 

We can apply for standard breathing space for you. It lasts for 60 days. 

There is a special type of breathing space for people in mental health crisis treatment. An approved mental health professional will need to help with the application. It lasts while you’re in treatment plus 30 days. 

If a bailiff turns up at your house, try not to let them in. You should get advance notice that they're coming, so keep doors locked. They’re allowed to come into your home through an unlocked door.

Refuse to deal with them if they turn up between 9pm and 6am. They’re not allowed to do this.

Bailiffs collecting tax debts or unpaid magistrate’s court fines can force entry by asking a locksmith to open your door, but this is unusual.

If you’re physically threatened, call the police on 999.

So you’ve decided you need to take action to deal with your debt. But how do you know which solution is right for you? It’s not easy. There’s a lot to consider when you’re thinking about a debt solution. That’s why it’s really important to get debt advice.

Our debt advice is free and independent. We’ll look at the money you have coming in and what you’re spending that money on. From there, we’ll be able to talk you through your options and tell you what course of action we recommend.

It may be that there are benefits you could be claiming that would help you get back on track with money. Or a debt solution, such as a debt management plan or an individual voluntary arrangement, may be the best way to help you sort out your finances.

We’ll make sure you’re aware of all the benefits and possible impacts of any course of action we suggest. We’ll also consider your individual situation and your long-term financial wellbeing before making a recommendation.

Dealing with debt and illness at the same time can be tough. If you’re in this position, you might be able to get some of your debt written off.

Medical write off involves asking a lender to forgive your outstanding debt in light of your physical health problems. This means you won’t be asked to pay it off.

Lenders are not guaranteed to accept medical write off requests. Some may agree, while others refuse.

To be considered, you’ll need medical evidence of your condition. This evidence must:  

• be dated in the last six months
• be from a doctor or medical professional (such as a nurse or psychiatrist)
• confirm your diagnosis
• explain how you’re affected by the condition
• ideally be on letter-headed paper and signed by a medical professional

Indefinite hold
Sometimes when a lender refuses medical write off, they suggest an indefinite hold instead. This means the amount owed stays as an outstanding debt, but the lender stops chasing you for payment.

If a mental health condition has contributed to your money problems, some lenders may be prepared to write off your debt. You can use a debt and mental health evidence form (DMHEF) to ask a health-and-social-care professional to give information about your situation.

You can then share that information with your lenders. Health professionals can’t charge for filling in the form. Each lender will look at requests on a case-by-case basis.