UK Debt Charities – Complete Review and Comparison
For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.
For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.
Welcome to our review and comparison of UK Debt Charities. This is the right place if you’re worried about a debt problem and need to find the best charity to help you.
We understand your concerns. Each month, more than 170,000 people come to us for advice on debt solutions, and we’re here to help you too.
In this article, we will:
- Explain what a UK Debt Charity is.
- Discuss how UK Debt Charities are regulated.
- Talk about the benefits of using a Debt Charity.
- List the best UK Debt Charities.
- Provide information on writing off debt legally.
Our team has experienced debt worries too. We’ve been in your shoes, and we understand what you’re going through.
Keep reading to discover how UK Debt Charities can support you on your financial journey. You’re not alone, and with the right guidance, you can navigate this challenging time.
Let’s dive in.
What Is a UK Debt Charity?
A UK debt charity is an organisation set up to help people who are in debt. As a charity, they do not charge for their services and support. Most debtors struggle to deal with their debts, and even those that are on the right track may need emotional support.
UK debt charities often provide a wide range of services including free debt advice, financial counseling and more. What is on offer will depend on the specific debt charity.
How UK Debt Charities are Regulated
All debt charities in the UK are authorised and regulated by the Financial Conduct Authority.
The Benefits of Using a Debt Charity
Being in debt can feel lonely, especially if you want to keep your money worries to yourself just now. A UK debt charity is a place where you can find confidential support without having to pay. Other benefits of the best UK debt charities include:
- Free debt advice
- Free money help and money management tools
- Expert resources
- Some will even speak with creditors on your behalf
- Some offer free debt solutions
- There are never any judgements
- Personalised support with mental well-being in regard to debt
How a debt solution could help
Some debt solutions can:
- Stop nasty calls from creditors
- Freeze interest and charges
- Reduce your monthly payments
A few debt solutions can even result in writing off some of your debt.
Here’s an example:
Situation
| Monthly income | £2,504 |
| Monthly expenses | £2,345 |
| Total debt | £32,049 |
Monthly debt repayments
| Before | £587 |
| After | £158 |
£429 reduction in monthly payments
If you want to learn what debt solutions are available to you, click the button below to get started.
What Are the Best UK Debt Charities?
There are many debt charities in the UK. Some are bigger than others, but three of the most popular and well-known are Step Change UK, National Debtline and Christians Against Poverty.
#1: Step Change UK
Step Change UK is a debt charity that is entirely funded by the government, UK banks and other donations. They claim to offer the most comprehensive free debt advice process on the charitable market – and they might not be wrong.
They use a three-step process to evaluate your situation and even help set up a debt solution with creditors:
- They gather information on your finances to help create a workable monthly budget and identify what income is left to pay your debts.
- They offer debt solution advice based on the information they have
- They help agree on a debt solution with creditors (and they stick around for support if needed!)
#2: National Debtline
National Debtline provides free debt advice online or over the phone. They do something similar to Step Change UK by working out your situation and providing possible solutions to consider. They also have a selection of online content that can be used to answer common debtor questions and worries.
One of the unique aspects of National Debtline is they run part of their charity to specifically help businesses that are struggling with debts. The only way they differ from Step Change UK is that they do not offer to arrange a debt solution directly with your creditors.
#3: Christians Against Poverty
Christians Against Poverty (CAP) is a debt charity that works with churches across the UK. As the name suggests, the charity is organised and run by Christians, but you don’t have to be a Christian to ask for help or receive it.
Anyone of any faith or no faith at all can get in contact with a CAP worker and ask for help. Their work is somewhat similar to the work of National Debtline by offering free debt advice and guidance on what debt solutions could work for your specific circumstances.
Christians Against Poverty is a smaller UK debt charity in comparison to the others. But it is a testament to their work that they are still one of the biggest debt charity names in the UK.
Is Citizens Advice a UK Debt Charity?
Citizens Advice is one of the best resources for people in debt. Contrary to what most people think, Citizens Advice is not one charity but a collection of over 300 charities spread across the UK. As their name suggests, their charitable work revolves around supporting people who need help with advice. They offer advice services relating to finances, but they also provide advice to do with other things such as the law, property, wills and more.
It would be fair to call Citizens Advice a debt charity in the UK, but unlike the aforementioned charities which solely focus on helping debtors, Citizens Advice help in other areas as well.
Thousands have already tackled their debt
Every day our partners, The Debt Advice Service, help people find out whether they can lower their repayments and finally tackle or write off some of their debt.
Natasha
I’d recommend this firm to anyone struggling with debt – my mind has been put to rest, all is getting sorted.
Reviews shown are for The Debt Advice Service.
Debt Charities Vs Professional Insolvency Practitioners
You may already know by now, but there are plenty of ways that one person could get out of debt. From debt management plans to IVAs and even bankruptcy, the options available will depend on personal circumstances.
UK debt charities can help you to agree on some solutions with your creditors, but for other solutions, you may need to get help from professional insolvency practitioners.
But hang on a minute!
Professional services like these are commercial, meaning you will have to pay fees (sometimes even monthly fees) to get their help. That doesn’t mean they aren’t worth their fees. But before you shop around for the best commercial debt solutions, make sure they are not available for free with a UK debt charity first.
The services on offer between debt charities can change, so always check back!
Is MoneyNerd a UK Debt Charity?
Money Nerd is not one of the fantastic UK debt charities.
We strive to provide debtors with free and impartial information through our content. We do this by creating guides and blog posts about topics that can help, and we ensure reading them is simple without confusing terms.
