Can't afford debt payments? Help is available. DRO options, benefits advice, emergency support, and dealing with creditors.
If you can't afford all debts, you MUST prioritize: rent/mortgage, council tax, magistrates fines, and utilities. These can lead to eviction, imprisonment, or disconnection.
Credit cards, loans, and overdrafts are "non-priority" - offer token payments (£1-£5 monthly) or explain you have nothing left after priority debts and essentials. Free debt advisors can help you negotiate.
MUST be paid - serious consequences if you don't
Examples:
Consequences if not paid:
Eviction, repossession, imprisonment, disconnection
Action to take:
Contact immediately, arrange payment plans, pay these FIRST
Important but less urgent - negotiate these
Examples:
Consequences if not paid:
County Court Judgments, damaged credit, bailiffs (only after court action)
Action to take:
Offer token payments, request interest freeze, consider debt solutions
Cost: £90
Criteria:
Debts under £30,000, disposable income under £75/month, assets under £2,000
Outcome:
Debts written off after 12 months
Best for:
People with very low income and minimal assets
Cost: Free
Criteria:
Any income level, proves willingness to pay
Outcome:
Pay £1-£5 monthly to each creditor until circumstances improve
Best for:
People on benefits or very low income with no disposable income
Cost: Free
Criteria:
Anyone struggling with debt
Outcome:
60 days protection from creditors, interest frozen, no enforcement
Best for:
Immediate breathing room while arranging finances
Cost: £50 court fee
Criteria:
Debts under £5,000, at least one CCJ
Outcome:
Court-managed payment plan, possible debt write-off
Best for:
Small debts with existing court judgments
Free debt advisors at StepChange (0800 138 1111), National Debtline (0808 808 4000), or Citizens Advice can assess your situation and recommend the best option. They can also help you apply for DRO, draft letters to creditors, and support you through the process. All advice is free and confidential.
Many people on low income miss out on £2,000-£5,000 per year in unclaimed benefits. Check if you qualify:
Use free benefits calculators to see what you could claim. Citizens Advice local offices can also do benefits checks to help you identify any support you may be missing.
Maximize your benefits using calculators at Turn2Us or EntitledTo, then prioritize essential debts (rent, council tax, utilities) over non-priority debts (credit cards, loans). Consider a Debt Relief Order if you have debts under £30,000 and disposable income under £75/month (costs £90, debts written off after 12 months), or offer token payments of £1-£5 monthly to creditors. Get free advice from StepChange (0800 138 1111), National Debtline (0808 808 4000), or Citizens Advice to help negotiate with creditors and explore solutions.
Yes, extensive help includes Universal Credit, Housing Benefit, Council Tax Reduction (up to 100% discount), Pension Credit, Child Tax Credit, free school meals, Healthy Start vouchers, and Cold Weather Payments. Additional support includes free prescriptions, Budgeting Loans, Local Welfare Assistance schemes, energy social tariffs, and debt-specific help like Debt Relief Orders and Breathing Space. Use benefits calculators at Turn2Us or EntitledTo - many low-income households miss out on £2,000-£5,000 yearly in unclaimed benefits.
Immediately check benefits using Turn2Us or EntitledTo calculators, contact priority creditors (rent, council tax, utilities), and apply for Breathing Space (60 days protection from creditors). For emergency help, contact food banks through Trussell Trust (0808 208 2138) or ask your GP for referral, and call StepChange (0800 138 1111) for debt crisis advice. Get free debt advice from StepChange, National Debtline, or Citizens Advice to explore debt solutions like DRO, and check Local Welfare Assistance schemes and Turn2Us grants database for emergency support.
Prioritize essential debts (rent, council tax, utilities, magistrates fines) and contact those creditors immediately with evidence of your income to request payment arrangements. For non-priority debts (credit cards, loans, overdrafts), write explaining your situation with an income/expenditure statement and offer token payments of £1-£5 monthly or explain zero disposable income. Consider a Debt Relief Order (costs £90, debts written off after 12 months if you qualify), apply for Breathing Space (60 days protection), or get free help from StepChange (0800 138 1111) to draft letters and explore solutions.
You're not alone. Free, expert advice is available specifically for people on low income. Debt advisors understand your situation and can help you access benefits, negotiate with creditors, and find solutions.