Debt Management Plan (DMP)
One affordable monthly payment shared between your non-priority creditors. Informal and flexible, free from debt charities — but you repay the full balance.
Read the DMP guide →Independent UK debt information
Debt solutions in the UK, explained in plain English
Compare your debt help options — Debt Management Plans, IVAs, Debt Relief Orders, bankruptcy, Breathing Space and more — with what each one costs, who qualifies and the downsides. When you want advice on your own situation, you can get it free from a regulated debt charity.
Checked against GOV.UK & MoneyHelper
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We don’t sell debt solutions
Key figures for 2026 (England & Wales)
- DRO debt limit
- £50,000
- Standard Breathing Space
- Up to 60 days
- Free DMP from a charity
- £0 fees
Compare your options
What debt solutions are available in the UK?
In England and Wales the main options are informal plans (a DMP or settlement offers), formal insolvency (an IVA, DRO or bankruptcy) and short-term protection through Breathing Space. Every option has trade-offs — each guide explains them.
Individual Voluntary Arrangement (IVA)
A legally binding deal set up by an insolvency practitioner. You usually pay for 5–6 years and what’s left is written off if you complete it. The amount written off varies.
Read the IVA guide →Debt Relief Order (DRO)
For people with debts up to £50,000, little spare income (£75 a month or less) and few assets. No fee. Debts are written off after 12 months.
Read the DRO guide →Bankruptcy
Apply online for £680. Most debts are usually written off after 12 months, but assets such as home equity may be sold and you may have to make payments for 3 years.
Read the bankruptcy guide →Breathing Space
A legal pause of up to 60 days that stops most interest, charges and enforcement while you get advice. Applied for through a debt adviser. England & Wales only.
Read the Breathing Space guide →Full & Final Settlement
Offer a lump sum that’s less than you owe in exchange for the rest being written off. Creditors don’t have to agree — always get it in writing before you pay.
Read the settlement guide →Debt Consolidation Loans
A new loan that pays off several debts, leaving one payment. Only worth it if the total cost is lower — it doesn’t reduce what you owe, and secured loans put your home at risk.
Read the consolidation guide →Debt Snowball Method
Paying debts off yourself: clear the smallest balance first for quick wins (snowball) or the highest interest rate first to save the most (avalanche). Works if you can still afford your repayments.
Read the snowball guide →At a glance
DMP vs IVA vs DRO vs bankruptcy
The four main debt solutions in England and Wales, side by side.
| Feature | DMP | IVA | DRO | Bankruptcy |
|---|---|---|---|---|
| Legally binding? | No | Yes | Yes | Yes |
| Debt written off? | No (unless creditors accept a settlement) | Yes — the balance left at the end | Yes — after 12 months | Yes — most debts, usually after 12 months |
| How long it lasts | Until debts are repaid | Usually 5–6 years | 12 months | Usually 12 months (payments can last 3 years) |
| Cost | Free from debt charities | Insolvency practitioner fees, paid from your payments | £0 | £680 |
| Public register? | No | Yes, until it ends | Yes, until 3 months after it ends | Yes, until discharge |
| Credit file | Defaults or arrangement markers, 6 years | 6 years from approval | 6 years | 6 years |
| Your home | Not directly affected | May need to release equity | Homeowners usually don’t qualify | Equity may be sold |
Scotland and Northern Ireland have different solutions — for example, Scotland has the Debt Arrangement Scheme, Protected Trust Deeds and sequestration. A free adviser can explain the options where you live.
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Deal with priority debts first
Rent or mortgage, council tax, energy, court fines and tax come first, because missing them can mean losing your home, your energy supply or bailiff action.
Understand your options
Read the debt solution guides, our practical guides and the debt glossary, or try the free tools.
Get free, regulated advice
A free debt adviser can check your budget, talk to creditors and set up a DMP, DRO or Breathing Space for you. Find the right service.
Common questions
Debt help FAQs
What debt solutions are available in the UK?
In England and Wales the main options are a Debt Management Plan, full and final settlement offers, an Individual Voluntary Arrangement (IVA), a Debt Relief Order (DRO) and bankruptcy. Breathing Space can pause most interest and enforcement for up to 60 days while you decide. Scotland has its own solutions, such as the Debt Arrangement Scheme, Protected Trust Deeds and sequestration.
Which debt solutions write off debt?
A DRO writes off the included debts after 12 months, and bankruptcy usually ends after 12 months with most debts written off. An IVA writes off whatever is left if you complete it, usually after 5 to 6 years. How much is written off depends on your circumstances, so nobody can promise a set percentage. A DMP doesn’t write off debt.
Will a debt solution affect my credit file?
Usually, yes. An IVA, DRO or bankruptcy stays on your credit file for 6 years and also appears on the public Individual Insolvency Register for a time. A DMP isn’t on a public register, but accounts are often marked as defaulted or in an arrangement to pay, and defaults drop off 6 years after the default date.
Can bailiffs be stopped?
Often they can be paused. Contact the enforcement company and the creditor straight away to offer an affordable payment plan, and say if you are vulnerable. Breathing Space pauses most enforcement action, and a DRO, IVA or bankruptcy stops included creditors from taking action. Bailiffs must give at least 14 clear days’ notice before their first visit. Read our bailiffs guide.
Where can I get free debt advice?
StepChange (0800 138 1111), National Debtline (0808 808 4000), Citizens Advice and the MoneyHelper debt advice locator all offer free, confidential advice from regulated advisers. They can set up a DMP, DRO or Breathing Space without charging you. Our free debt advice page helps you pick the right service.
Should I trust adverts that promise to write off my debt?
Be careful. There is no special government scheme that writes off debt. Many online adverts and “debt surveys” collect your details and pass them to firms that are paid to sell solutions such as IVAs. Free debt charities explain every option without charging fees. Check any firm on the FCA register before you sign anything.
Get free, regulated debt advice
You never need to pay for debt advice. These services are free, confidential and impartial, and can deal with your creditors for you. We’re not connected to them and receive nothing for recommending them.
StepChange
Online debt advice tool or phone advice; free DMPs, DROs and Breathing Space.
National Debtline
Phone, webchat and self-help guides for England, Wales and Scotland.
Citizens Advice
Face-to-face help at local offices, plus phone advice in England and Wales.
0800 144 8848 (England) · citizensadvice.org.uk
MoneyHelper
The government-backed debt advice locator finds free services online, by phone or near you.
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