If you are you having difficulty managing your money or paying off debts, here are some useful links and information
We recommend you seek advice and support as soon as possible with your money and debt issues.
It’s worth checking that you are receiving everything you are entitled to, the Government benefits calculator is a good starting point
Many organisations offer debt advice and help
StepChange offer free, flexible debt advice based on a comprehensive assessment of your situation
MoneyHelper is a Government online resource with lots of help and guidance
Visit our cost of living page for useful information and links
The Royal British Legion has a team of Financial Advisors on hand to give advice and support. You can also contact them on 0808 802 8080
Citizens Advice is a good source of help and guidance.
Please note: Under GDPR rules, we cannot speak to Universal Credit / Local Authorities, Military charities or your named representative without your written consent. If you want to add someone, please complete this form
Information about debt management
Debt Relief Orders (DRO)
A DRO is one way to deal with your debts if you:
- owe £30,000 or less
- don’t own your own home
- don’t have other assets or things of value
- don’t have much spare income
You don’t have to make payments towards most types of debt included in your DRO and your creditors can’t force you to pay off the debts. A DRO usually lasts a year unless your situation improves. When the DRO ends, most of your debts will be written off.
You’ll need to speak to a special DRO advisor who will help you to fill in an application to the official receiver. The advisor can’t charge you for their time, but there is a fee to make a DRO application.
Individual Voluntary Agreement (IVA)
Not available in Scotland
An IVA is a formal and legally binding agreement between you and your creditors to pay back your debts over a period of time. It’s approved by the court and all parties have to stick to the agreement.
While you have an IVA, your creditors should stop:
- charging interest on your debts
- chasing you to pay your debts
While you are in an IVA, you must:
- make the agreed payments – this is usually a single monthly payment or a lump sum
- let your IVA provider know if your income changes or you have any other change in circumstances
- not take out any new credit without permission (e.g. loans)
You can include any amount of debt in your IVA. There are no minimum or maximum limits. The fees for an IVA are high so if your total debt is less than £10,000, an IVA might not be the best option.
Some debts cannot be included and will need to be dealt with separately, some examples are:
- maintenance arrears that have been ordered by a court
- student loans
- magistrates’ court fines
- Social Fund loans
- TV licence arrears
You’ll need to decide what the best solution is for your situation. It’ll depend of things like:
- the type of debts you have
- the total amount of debt you have
- how much money you can pay towards your debt
Debt Arrangement Scheme (Scotland only)
This is a legally binding agreement that lets you repay your debts at an affordable rate, while still leaving you enough money for household bills and living costs
- Your creditors cannot contact you or take any further legal action
- If your situation changes, you can apply to vary the payments
Bankruptcy
You might be able to declare yourself bankrupt if you can’t pay your debts and the amount you owe is more than the value of the things you own.
The bankruptcy period usually lasts 12 months. If you go bankrupt, most of your creditors won’t be able to contact you about your debts or take you to court.
To decide if bankruptcy is right for you, check:
- what you’ll have to pay
- which debts are covered by bankruptcy
- how bankruptcy might affect things like your home, belongings and bills
- how you dealt with your debts before going bankrupt
It is important to note that your bank accounts may be frozen and you may have problems opening new accounts. Your bank can provide you with further details.
