How to Get Out of Debt
Feeling overwhelmed by debt? You are not alone, and there is a way out. Whether you want to manage your debts yourself or need help finding the right solution, this guide will show you how to take control and start your journey to becoming debt free.
The Good News
You are not alone
Millions of people deal with debt every year
Solutions exist
From simple strategies to formal debt solutions
A fresh start is possible
Many people write off 85% or more of their debt
How Do I Start Getting Out of Debt?
The most important step is simply starting. Debt can feel overwhelming, but breaking it down into manageable steps makes it easier to tackle.
First, get clear on exactly what you owe. Many people avoid looking at their debts because it feels scary. But knowing the full picture is essential for making a plan. List every debt, the balance, and the interest rate.
Next, understand what you can realistically afford to pay each month after your essential bills. This helps you choose the right approach, whether that is managing debts yourself or exploring formal debt solutions.
5 Steps to Get Out of Debt
Follow these steps to create your plan for becoming debt free.
List all your debts
Write down every debt you have, how much you owe, and the interest rate. Include credit cards, loans, overdrafts, and any money you owe.
Work out what you can afford
Look at your income and essential spending. What is realistically left over each month for debt payments?
Choose your approach
If you can manage payments, pick a strategy like snowball or avalanche. If debts feel overwhelming, explore formal debt solutions.
Get advice if you need it
If you are struggling to make minimum payments or debts keep growing, free debt advice can help you find the best way forward.
Take action and stay focused
The most important step is starting. Every payment brings you closer to being debt free.
Ways to Get Out of Debt
There are different approaches depending on your situation. Here are the main strategies people use.
Snowball Method
Pay minimum on all debts except the smallest. Put extra money toward the smallest debt until it is gone. Then move to the next smallest. Quick wins keep you motivated.
Best for: People who need motivation from seeing progress
Pros:
- Quick wins boost motivation
- Fewer debts to manage over time
- Simple to follow
Cons:
- •May cost more in interest overall
- •Larger debts can feel overwhelming
Avalanche Method
Pay minimum on all debts except the one with highest interest. Focus extra payments there first. Mathematically the fastest way to become debt free.
Best for: People focused on saving money long term
Pros:
- Saves most money on interest
- Mathematically optimal
- Good for high interest debt
Cons:
- •Progress can feel slow
- •Requires more discipline
Debt Consolidation
Combine multiple debts into one loan with a lower interest rate. One payment, one deadline, simpler to manage.
Best for: People with good credit who can get lower rates
Pros:
- One monthly payment
- Potentially lower interest
- Easier to manage
Cons:
- •Requires good credit
- •Can extend debt term
- •Risk of new debt
Formal Debt Solution
Use an IVA, DMP, or DRO to formally manage your debts with creditor agreements and potential write offs.
Best for: People with £2,500+ debt struggling to manage payments
Pros:
- Legal protection from creditors
- Debt may be written off
- One affordable payment
Cons:
- •Affects credit rating
- •Restrictions apply
- •Not suitable for all
Formal Debt Solutions
If your debts feel unmanageable, formal solutions can provide structure, protection, and potentially write off some of what you owe.
Individual Voluntary Arrangement (IVA)
A legally binding 60 month plan. Your debts and interest are frozen, creditors cannot contact you, and remaining debt is written off at the end.
- Write off up to 85% of debt
- 60 month fixed term
- Legal protection from creditors
- Fresh start at the end
Best for: People with £2,500+ debt who can afford £100+ per month
Learn moreDebt Management Plan (DMP)
An informal arrangement to pay back your debts at a rate you can afford. Flexible and you stay in control.
- One monthly payment
- Flexible, leave anytime
- Protects your home
- We deal with creditors
Best for: Homeowners with multiple debts
Learn moreDebt Relief Order (DRO)
A way to write off debts under £30,000 if you have very little income or assets.
- Debts written off after 12 months
- Only £90 to apply
- No payments during DRO
- Fresh start
Best for: People with low income and debts under £30,000
Learn moreBankruptcy
A formal process to write off debts when other options are not suitable. Most debts written off after 12 months.
- Most debts written off
- Usually lasts 12 months
- Fresh financial start
- Stop creditor contact
Best for: People with significant debt and no other options
Learn moreNot sure which solution is right for you?
Get free adviceHow it works
Getting help is easier than you think. Here is what happens when you get in touch with us.
Have a chat with us
Call us or fill in the form. We will listen to what is going on and explain your options in plain English. No pressure, just help.
We look at your situation
We will work out what money is coming in, what is going out, and what you owe. This helps us find the best way to help you.
We sort everything out
Once you decide what to do, we handle all the paperwork and talk to the companies you owe money to. You do not have to do this yourself.
Get debt free
You make one payment each month that you can afford. Your debt goes down, and eventually, you are free of it. A fresh start.
Ready to take the first step?
Check If You QualifyPeople Who Got Out of Debt
Real stories from people who took control of their finances and became debt free.
"I had over £30,000 in debt and could not see a way out. The IVA gave me a clear 5 year plan. Now I am nearly debt free and it feels amazing."
Rebecca H.
Manchester
Result
£18,000 written off
"I tried managing my debts myself for years but they just kept growing. Getting professional help was the best decision. One payment I can afford and no more stress."
James T.
London
Result
Debt free journey started
"I was embarrassed about my debt but the team were so understanding. They helped me see there are real options. I finally have hope for my financial future."
Louise M.
Bristol
Result
One affordable payment
Get Out of Debt Questions
Find answers to common questions about getting out of debt.
What is the best way to get out of debt?
The best way depends on your situation. For smaller debts, budgeting and focusing payments on one debt at a time often works. For larger debts that feel unmanageable, formal debt solutions like an IVA or Debt Management Plan can provide structure and potentially write off some of what you owe. Getting free debt advice helps you find the right approach.
Can I get out of debt without paying?
In some cases, yes. Debt solutions like IVAs can write off up to 85% of your debt after 60 months of affordable payments. Debt Relief Orders write off debt after 12 months if you have very little income. Even bankruptcy can write off debt. However, all these options have implications for your credit rating and should be considered carefully with proper advice.
How long does it take to get out of debt?
This varies greatly depending on how much you owe and what approach you take. Paying off debt yourself could take many years. An IVA has a fixed 60 month term after which remaining debt is written off. A Debt Relief Order takes 12 months. A Debt Management Plan lasts until you have paid everything back, which could be 5 to 10 years or more.
Should I use savings to pay off debt?
Generally, using savings to pay off high interest debt makes financial sense, as the interest you pay on debt is usually higher than what you earn on savings. However, keeping a small emergency fund is wise to avoid needing credit in future. If you are considering a formal debt solution, you should get advice before making any lump sum payments.
What is the fastest way to get debt free?
For unmanageable debt, an IVA can provide a clear 60 month path to being debt free, with remaining debt written off at the end. For smaller debts, the avalanche method (paying highest interest first) is mathematically fastest, while the snowball method (smallest debts first) can be more motivating. The fastest method is the one you can stick to.
How do I start getting out of debt?
Start by listing all your debts and what you pay each month. Look at your income and see what you can realistically afford. If your debts feel manageable, create a budget and focus extra payments on one debt at a time. If you are struggling to make minimum payments or debts keep growing, it is time to get proper debt advice.
What debts should I pay off first?
Priority debts like rent, mortgage, council tax, and energy bills should always come first as they have the most serious consequences. After that, the avalanche method suggests paying highest interest debt first. The snowball method says pay smallest debts first for quick wins. Choose what works for your situation and mindset.
Can I get help to pay off my debts?
Yes, there are several ways to get help. Free debt advice services can help you understand your options. Formal debt solutions like IVAs negotiate with creditors on your behalf and can reduce what you pay. Debt Management Plans manage your payments to creditors. You are not alone and there are people who can help.
Ready to Get Out of Debt?
Whether you need a simple strategy or a formal debt solution, we can help you find the right path. Our free assessment takes just 2 minutes.
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