How to get out of debt in the UK
Written byEmily Tye
Updated:Apr 23, 2026
Being in debt is more common than many people realise. According to a FCA Financial Lives survey published in 2025, around two in five UK adults have some form of unsecured debt. If you're struggling with it, you're not alone.
There is a way forward. This guide covers the practical steps you can take, the strategies that work for different situations, and the formal options available if things have become genuinely unmanageable. It also tells you where to get free expert help.
What counts as a 'priority' debt?
In UK debt advice, debts are typically categorised as either 'priority' or 'non-priority' based on the consequences of not paying them. This is a widely used framework in debt advice, not a judgement about which debts matter more to you personally.
'Priority' debts are those where falling behind can lead to serious consequences like losing your home, having utilities cut off, or being taken to criminal court. The most common examples include:
Mortgage or rent arrears
Council tax arrears
Gas and electricity bills
Criminal court fines
Child maintenance arrears
Income tax, VAT, or National Insurance owed to HMRC
This list is not exhaustive. Citizens Advice has a full breakdown of priority debts including some less common categories.
'Non-priority' debts are still serious and need a plan. The consequences of not paying non-priority debts are real, including county court judgments, bailiff action, and damage to your credit score.
If you're struggling to pay everything at once, address priority debts first. If credit card debt is your main concern, our guide to how to pay off credit card debt covers that in more detail.
How do I get out of debt? A step by step plan
If your debt is still manageable and you have some income left each month after essentials, these four steps give you a foundation.
List everything you owe. Write down each debt: the lender, the outstanding balance, the interest rate, and the minimum monthly payment.
Work out your monthly budget. Add up your income, then subtract all essential outgoings: rent or mortgage, bills, food, transport. What remains is what you have available for debt repayment. Be honest with this number.
Stop adding to your debt. While paying down existing balances, avoid borrowing more. Even small additions make progress harder.
Choose a repayment strategy. Once you know what you owe and how much you have to work with each month, you can decide how to approach it. The next section explains your main options.
What is the best way to pay off debt?
There is no single right answer. The most effective approach depends on your debts, your income, and what keeps you motivated over time.
The debt avalanche method
Put all your extra money toward the debt with the highest interest rate, while paying the minimum on everything else. Once that debt is cleared, move to the next highest rate.
This is mathematically the cheapest route to becoming debt free – it minimises the total interest you pay across all your debts.
The debt snowball method
Put all your extra money toward the debt with the smallest balance, while paying the minimum on everything else. Once it is cleared, move to the next smallest.
This clears individual debts faster. Some people find the sense of progress motivating enough to stay consistent, even if the overall interest cost is higher than the avalanche approach.
Debt consolidation
A debt consolidation loan combines multiple debts into one monthly payment, ideally at a lower overall interest rate.
It is only worth pursuing if the new rate is genuinely lower than your current average, and if you are confident you will not borrow again on the accounts you have just paid off.
Extending your repayment term to lower monthly payments can mean paying more in total interest even at a lower rate, so read the full numbers before committing.
0% balance transfers for credit card debt
If most of your debt sits on credit cards, a 0% balance transfer card can pause interest for a promotional period, giving you time to reduce the balance. The risk is what happens at the end of that period: any remaining balance will move onto the card's standard interest rate. Make sure you have a plan to clear it in time. Learn more in our guide: What is a balance transfer?
What should I do if I can't afford my debt payments?
If you cannot cover minimum payments, or you're having to choose between debt and essentials like food or rent, the most important thing is to act rather than wait.
Contact your creditors directly. Under FCA rules, lenders must treat customers in financial difficulty fairly and cannot flatly refuse to consider a repayment proposal. Getting in contact early, before you miss a payment if possible, puts you in a stronger position than going silent.
Don't ignore correspondence. Debt does not go away if you avoid it. Missed payments lead to late fees, default notices, potential debt collection, and ultimately court action. Getting in contact early, even if you have nothing to offer right now, is almost always better than going silent.
Get free advice. If you are unsure what to do next, the free services listed at the end of this guide can help you work through your options. The FCA's Financial Lives survey (published in 2025) found that 61% of people who had sought help from a debt advisor said their debts became more manageable as a result.
What formal debt solutions are available in the UK?
If debt has become genuinely unmanageable, there are UK solutions designed to help.
Some of these solutions will remain on your credit file for six years, which can affect applications for a mortgage, rental agreements, and further credit. This is why none of them should be entered into without speaking to a free debt adviser first; they can assess which option, if any, is right for your specific situation.
Solution | What it means for you |
|---|---|
Debt Management Plan (DMP) | An arrangement where you pay what you can afford each month to a DMP provider, who distributes it to your creditors. Interest may be frozen by agreement. |
Individual Voluntary Arrangement (IVA) | A formal, legally binding agreement to repay part of your debt over a set period, typically five or six years. Any remaining debt is written off at the end. In Scotland, the equivalent is a Protected Trust Deed (PTD). An Insolvency Practitioner manages the arrangement and takes fees from your monthly payments. You should not pay fees upfront and should always use a regulated practitioner. |
Debt Relief Order (DRO) | A formal solution that pauses enforcement for 12 months, then writes off qualifying debts if your situation has not improved. Eligibility depends on debt level, income, and assets. In Scotland, the equivalent is the Minimal Asset Process (MAP). |
Breathing Space | A legal period of protection from creditor contact and enforcement, giving you time to get advice and put a plan in place. In Scotland, the equivalent is the Moratorium on Diligence. It's not yet available in Northern Ireland. |
Bankruptcy | The most serious formal option, used as a last resort when other solutions are not suitable. Your assets may be sold to pay creditors, and you are usually discharged (formally released from bankruptcy restrictions and most remaining debts) after 12 months. In Scotland, the equivalent is Sequestration. |
Where can I get free debt help in the UK?
You can seek help and advice from charities or directly from your credit card provider. At Zable, we work with PayPlan, but you can also get free, impartial support from charities like:
National Debtline (0808 808 4000)
MoneyHelper (0800 011 3797)
StepChange (0800 138 1111)
FAQs
This blog is for informational purposes only and does not constitute financial advice. Please speak to a qualified financial adviser before making financial decisions.
