Getting out of debt
A calm, practical guide: where to get free confidential help, which debts to deal with first, two proven payoff methods — and when a formal solution might be right.
Step 1 — Free, impartial help comes first
Before anything else: the help is free. Plenty of companies charge for debt “solutions” that the charities above provide for nothing. A free adviser can do everything a paid one can — build your budget, contact creditors and set up a plan — without taking a cut of money you need. Speaking to an adviser does not affect your credit score, and reaching out early gives you more options.
Step 2 — Work out what you owe
It's tempting to avoid looking, but the first real step is to list every debt: who you owe, how much, the APR, and the minimum payment. Seeing it written down is uncomfortable for a moment and a relief afterwards — you can't make a plan for a number you don't know.
Step 3 — Sort priority from non-priority debts
Not all debts are equal. Priority debts are the ones with the most serious consequences if unpaid — these come first, always:
| Priority (deal with first) | Non-priority |
|---|---|
| Rent / mortgage | Credit cards & store cards |
| Council tax | Personal loans |
| Gas & electricity | Overdrafts (usually) |
| Court fines, tax (HMRC) | Catalogue & buy-now-pay-later |
The labels are about consequences, not size: missing council tax or rent can mean court action or losing your home, while a missed credit-card payment, though serious, has less severe immediate consequences.
Step 4 — Make a simple budget
Work out what comes in and what must go out (housing, food, energy, travel, priority debts). What's left is what you can put towards non-priority debts. A free debt adviser can help you build this and, if there's not enough to go round, that's exactly when their help matters most.
Step 5 — Choose a repayment method: avalanche or snowball
With your spare amount, attack one non-priority debt at a time while paying the minimum on the rest. Two proven approaches:
- Avalanche — clear the highest-APR debt first. This saves the most money in interest.
- Snowball — clear the smallest balance first. This gives quick wins and momentum.
Step 6 — Lower the interest, only if it's affordable
Lowering the interest means more of each payment clears the debt — but only do this if the new arrangement is genuinely affordable, not as a way to keep borrowing:
- A 0% balance transfer can pause credit-card interest while you pay down the balance — useful if you can clear it before the 0% ends.
- Consolidating several debts into one personal loan can simplify payments, but check the total cost and term — a lower monthly payment over a longer term can cost more overall.
Be cautious with any borrowing that's secured on your home, and never take new credit to keep up with old credit without advice first.
Step 7 — Formal solutions exist, but get advice first
If a realistic budget still doesn't cover your essentials and debts, a formal solution may help in some situations. In England and Wales the options include a Debt Management Plan, a Debt Relief Order, an IVA and, in some cases, bankruptcy. There is also Breathing Space (the Debt Respite Scheme), which can give temporary protection from interest, fees and most enforcement for up to 60 days while you get advice and put a plan in place. Scotland and Northern Ireland have their own schemes.
Frequently asked questions
Where can I get free debt help in the UK?
Free, confidential and impartial debt advice is available from MoneyHelper, StepChange, National Debtline and Citizens Advice. They can help you build a budget, talk to your creditors and understand your options. You should never have to pay a company for debt help — the charities do it for free.
What are priority debts?
Priority debts are the ones with the most serious consequences if you don’t pay: rent or mortgage, council tax, gas and electricity, court fines and tax. Missing these can mean losing your home, having services cut off, or court action. Always cover priority debts before non-priority debts like credit cards and personal loans.
What is the difference between the snowball and avalanche methods?
Both clear debts one at a time while paying minimums on the rest. The avalanche method targets the highest-interest debt first, which saves the most money. The snowball method targets the smallest balance first, which gives quicker wins and motivation. Avalanche is cheaper; snowball can be easier to stick to.
Will getting debt advice hurt my credit score?
Speaking to a free debt adviser does not affect your credit score. Some solutions — like a debt management plan or an IVA — can show on your credit file and affect future borrowing, but an adviser will explain the trade-offs clearly before you decide anything. Getting advice early gives you more options.
When should I consider a formal debt solution?
If you can’t cover essential costs and your debts after building a realistic budget, it may be time to look at a formal option such as a Debt Management Plan, a Debt Relief Order, an IVA or, in some cases, bankruptcy. Each has different effects and eligibility rules, so talk to a free adviser before choosing — they’ll help you pick the right one.
Plan your payoff: see how a fixed monthly payment clears a card.
Credit card payoff calculator →