Debt solutions: compare your options

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.

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 comparison of DROs and DMPs and obtain free advice.

Also consider: A DRO appears on a public insolvency register and affects your credit record. Restrictions apply, some debts are excluded and you must meet the conditions throughout the relevant period.

Individual Voluntary Arrangement (IVA)

An IVA is a formal agreement available in England, Wales and Northern Ireland, with different procedures, and 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.

Also consider: An IVA requires creditor approval, appears on a public insolvency register and restricts spending under its terms. Some debts are excluded. If it fails, debts may remain and bankruptcy may follow. How your home and equity are treated depends on the proposal and the rules used; equity can affect the length of an arrangement. The 2025 IVA protocol has specific rules, and other or older arrangements can differ.

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.

Also consider: Bankruptcy appears on a public insolvency register and can affect employment or business activities as well as credit. A home and other assets may be sold, and some debts remain payable.

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.

A DAS debt payment programme is recorded on a public register and can affect access to credit. Repayment may take a long time. If the programme is revoked, creditor action can resume and interest and charges may become payable.

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.

Creditors can object, and protection is not guaranteed.

Discuss alternatives with a qualified adviser before signing. See our guide to trust deeds and car finance.

Also consider: A protected trust deed appears on Scotland’s public Register of Insolvencies. The arrangement can require payments from income and contributions from assets or home equity, with restrictions set by its terms. Some debts are excluded. If it fails, debts may remain and bankruptcy may follow.

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.