Help and advice when you are in debt
This information applies to England and Wales.
Not having enough money to pay important bills like rent, Council Tax, gas and electricity can be stressful. Your health can also suffer if you’re not eating properly or keeping warm.
While it’s easy to get into debt, it’s more difficult to get out. The most important thing is to talk about your situation with someone you trust. This could be a family member, friend or someone at work. They could help you contact your local authority, landlord or creditors.
Talk to a debt adviser. You might not think so, but talking about your debt can help.
Warning Time to deal with debts
You could get up to 60 days' respite from interest, fees and court action to reduce stress and give you time to deal with your debts.
Managing debt and stress
First, prioritise your debts. Write down which debts are:
Priority debts
Not paying these will cause serious problems. They include Council Tax, TV licence, child maintenance, income tax, fuel bills, mortgage or rent.
Getting financial help from your energy supplier
Emergency debts
Usually priority debt that you’ve been unable to pay or ignored. These can result in eviction, rent arrears or having your gas or electricity cut off.
Non-priority debts
These usually have creditors. You will need to work out a repayment plan for these. They include overdrafts, bank loans, credit card or store card bills and money borrowed from friends and family.
Contact a debt adviser
Contact a debt adviser who will be able to give free advice on paying priority debts or when you’re faced with a debt emergency.
You could try:
- StepChange Debt Charity for free online debt advice
- Citizens Advice Web Chat with trained advisers
- Citizens Advice may have a debt specialist at your local office
- Debt Advice Foundation for practical advice on managing debt
If your landlord is a housing association or local authority, tell them if you are struggling to pay your rent. It’s worth asking if they can offer a solution.
Christians Against Poverty have caseworkers who will contact creditors on your behalf.
Ask your local authority if they have a Welfare Rights Service which can take up your case.
Warning Do not pay for debt advice
You should not have to pay for debt advice. Ask your debt adviser if the service is free. If it’s not, look for someone else.
Non-priority debt
Non-priority debts are those you could pay off a little at a time. You could still be taken to court for not paying, but it’s less likely than for a priority debt.
Contact each person or organisation you owe money to and explain your situation. They’ll be able to tell you the minimum amount you need to pay each month.
Reducing debt
To reduce your debt, you need to make savings where possible and plan to make regular payments to your creditors. But you need to look after your mental and physical health too. So not eating because you have to pay a gas bill is not a good plan.
Speak to a debt adviser who will be able to help you with a payment plan.
Dealing with debt (MoneyHelper)
Debt help plan (MoneySavingExpert)
Use the Turn2us benefits calculator to find out what you can claim.
Emotional support
People get into debt for different reasons. Whatever the reason, it’s important that you share your concerns with someone you trust.
Talking about money can be difficult, but so is keeping it to yourself.
Last reviewed by Scope on: 09/10/2023
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