MoneyNerd introduces enquiries to The Debt Advice Service and may receive a referral fee. For free, independent guidance and help finding a debt adviser, visit MoneyHelper.
This information and enquiry service is not a full financial assessment or a guarantee of suitability or debt write-off. Debt solutions are not suitable for everyone. Fees may apply, and your credit record and assets may be affected. Get advice on your circumstances before choosing a solution.
Compare repayment plans and formal debt solutions, including eligibility, fees, credit impact and risks to assets.
Debt Consolidation
Consolidation uses new borrowing to repay existing debts. It may simplify payments, but a longer term, fees or a higher rate can increase the total cost. Securing previously unsecured debt against your home puts the home at risk if you cannot repay. Compare the full cost and get free debt advice first. See our debt consolidation guide.
Debt Relief Order (DRO)
A DRO is a formal insolvency option for eligible people with limited income and assets. In England and Wales, qualifying debts must total no more than £50,000 and other eligibility limits apply; the application is free through an approved adviser. Northern Ireland has separate rules.
A DRO normally restricts recovery of included qualifying debts during its 12-month period and can release those debts at the end if the conditions remain satisfied. It does not stop every kind of creditor contact, cover every debt or remove the need to pay ongoing bills. Read our DRO guide and obtain free advice.
Debt Management Plan (DMP)
A DMP is an informal arrangement to repay suitable non-priority debts at an affordable rate. Creditors do not have to agree to it or freeze all interest, and it does not provide the same legal protection as a formal solution. Reduced payments can affect your credit record.
Free providers are available; check any proposed fees and keep paying priority bills separately. A free debt adviser can assess whether a DMP is suitable.
Individual Voluntary Arrangement (IVA)
An IVA is a formal agreement supervised by an insolvency practitioner. Its payments, duration, fees and treatment of assets depend on the approved proposal. It can write off eligible unpaid balances on successful completion, but some debts remain outside it and failure has consequences.
An IVA affects your credit record and can affect property or other assets. Compare free advice and alternatives before committing. See our IVA guide.
Bankruptcy
Bankruptcy can provide relief from qualifying debts but has substantial consequences, including costs, restrictions and possible loss of assets. Some people must make income payments, and certain debts are not released. Rules differ across the UK.
Get free advice before applying and read our bankruptcy guides.
Debt Arrangement Scheme (DAS)
DAS is available in Scotland. An approved Debt Payment Programme normally repays included debts in full through affordable instalments, freezes relevant interest and charges, and protects against specified creditor enforcement. It does not ban every administrative contact or remove ongoing bill obligations.
An approved money adviser must assess and submit the application. See our DAS guide.
Trust Deed
A protected trust deed is a Scottish insolvency solution with eligibility rules, fees and consequences for income, assets and credit. A qualifying level of debt alone does not make it suitable. Only debts and creditors bound by its terms receive the relevant protection.
Discuss alternatives with a qualified adviser before signing. See our trust-deed guide.