Navigating debt can be overwhelming, especially if you have concerns about creditors taking action against you. At MoneyPlus, we provide a range of debt help services and are here to support you on your journey to manage and reduce your debt. Find out more about how we can help with debt below.
What Is Debt Help and How Does It Work?
Debt help is support and guidance for anyone struggling to manage what they owe. This can look different for everyone as the most helpful solution depends on your specific circumstances and financial situation. Help with debt can range from general budget planning advice to more formal debt solutions, such as IVAs and DROs.
Here at MoneyPlus, we start by understanding your financial situation and then talk you through the options available to you. This doesn’t mean you have to commit to a formal debt solution straight away – it is simply a chance to find out more about debt help options and how they work so you can make an informed decision.
When Should You Seek Debt Help?
There are a number of signs that you may need to seek some debt help or advice. For example, if you’re:
- consistently falling behind on payments
- unable to pay household bills
- relying on your overdraft or credit card to make essential purchases
- missing debt repayments
- hiding your debt from your loved ones
- ignoring your creditors’ attempts to contact you.
However, there is no universal rule for when to seek debt help and you don’t need to wait until your situation reaches breaking point. In fact, it’s better to seek debt help early to give yourself more options and build healthy financial habits sooner.
Benefits of Getting Professional Debt Help
Getting advice from a professional debt help service can make a real difference in how you manage and recover from debt. With expert support, you can:
- Deal with creditors more easily
Advisers can communicate with creditors on your behalf, helping to stop pressure, reduce payments, and freeze interest or charges in some cases.
- Access formal debt solutions
Some debt solutions like IVAs and DROs need to be set up through authorised providers. Professional help ensures you understand your options and apply correctly.
- Get a clearer view of your finances
From budgeting advice to prioritising your payments, professional help gives you the tools to move forward with confidence.
Types of Debt Help Services Available
As mentioned above, there are a number of different debt help services available, depending on your financial situation. Below, we’ll give a brief overview of some of the options available.
Debt advice
Whether you opt for a debt solution or not, the starting point for help with debt is debt advice. Talking to a debt adviser about your situation can help provide clarity as they can recommend methods to improve your financial situation, such as a monthly budget plan or ways to increase your income and/or decrease your spending.
Individual Voluntary Arrangement (IVA)
An Individual Voluntary Arrangement (IVA) is a debt solution that allows you to pay back your debt in affordable monthly payments over a period of time, usually 5 or 6 years. It is a formal agreement between you and your creditors, meaning they can’t contact you or charge interest. Once it has finished, any remaining debt included in the IVA is written off. However, it will stay on your credit file for six years so can affect your ability to get credit.
Debt Management Plan (DMPs)
A Debt Management Plan (DMP) allows you to pay back your debt in one monthly payment, which is calculated based on what you can afford. It is an informal agreement with your creditors and can only include non-priority debts. As a DMP isn’t legally binding, you or your creditor can cancel it at any time and it typically won’t show on your credit file unless you miss payments.
Debt Relief Order
For people with minimal assets and income, a Debt Relief Order (DRO) can be a great option. This allows you to stop making payments towards debts included in the DRO for 12 months and if, after this time period, you’re unable to repay, these debts are written off. DROs stay on your credit file for six years.
Bankruptcy
Bankruptcy is typically a last resort if the amount of debt you owe is more than the sum of your assets. It lasts for 12 months and during this time, any assets may be sold to pay off debt and you’ll need to follow a number of restrictions. It’s a legally binding insolvency solution and remains on your credit file for six years.
Administration Order
An Administration Order is a formal agreement between you and your creditors to pay back your debt over a period of 3 years. To be eligible, you must have two or more debts, including either a High Court Judgment or County Court Judgment (CCJ). If you can’t afford to pay back all of your debt over 3 years, you may be eligible for a Composition Order.
Breathing Space Scheme
As the name implies, the Breathing Space Scheme gives you the time and space to deal with your debts, offering protection from your creditors. There are two different types of breathing spaces:
- Standard breathing space – this lasts up to 60 days, during which time your creditors can’t contact you or take legal action against you over unpaid debt. Most interest fees and additional charges are also frozen.
- Mental health crisis breathing space – this is only available to someone receiving mental health crisis treatment and it has stronger protections. It lasts as long as your treatment does, plus an additional 30 days.
How to Get Debt Help from MoneyPlus Advice
Getting debt help from MoneyPlus is simple. Here’s how it works:
- Get in touch
You can contact us by phone, email or by filling in the form on our website. Talk to our debt experts about your financial situation, your debts and any questions you have.
- We’ll find a solution
Our debt advice solutions are tailored to suit you. Taking your circumstances into account, we’ll create a plan to help you manage your debt.
- Take the next step
If you decide to use one of our debt solutions, we’ll let your creditors know you’re with MoneyPlus. If not, we can signpost you to another service.
Am I Eligible for Debt Help?
Most people dealing with debt can get some form of help, but the right solution depends on your circumstances. Debt solutions typically have specific eligibility criteria, which may include limits on debt levels and residency. For example, there are Scottish debt solutions, such as Sequestration and Protected Trust Deeds (PTDs) not available to residents in England, Wales or Northern Ireland.
A debt adviser will help identify which debt solutions you’re eligible for and guide you toward the best option for you. To get an idea of which solution may be best for you, take a look at our comparison table below:
| Debt solution | Who may be eligible |
| IVA | Those with over £6,000 in unsecured debt, two or more creditors and at least £100 in spare income each month. |
| DMP | Those with at least £2,000 in unsecured debt, two or more creditors and at least £100 in spare income each month. |
| DRO | Those with less than £50,000 in eligible debt, less than £75 in monthly disposable income, less than £2,000 in assets and a vehicle worth no more than £4,000. |
| Bankruptcy | Those who are insolvent and can pay the £680 application fee. |
Debt Help for Different Types of Debt
Understanding the type of debt you have is key to getting the right help. Some debts carry more serious consequences if you don’t pay them, which is why they’re classed as priority debts. Non-priority debts are still important but don’t have the same immediate risks. At MoneyPlus Advice, we can help you deal with both.
Priority debt
Priority debts are those where the consequences of non-payment can be severe, such as eviction, disconnection or even imprisonment. These include:
- Mortgage or rent
- Council tax
- Gas, electricity, internet and phone bills
- Court fines and CCJs
- TV licence
- Secured loan
- Child maintenance
- Income tax, VAT and National Insurance.
If you’re dealing with priority debts, it’s important to address them before anything else, as the consequences of falling behind can be serious. We can help by offering expert advice on budgeting, debt prioritisation, and which debt solutions may be suitable for your circumstances.
Generally, debt solutions only cover non-priority debt but arrears from priority debt can be included in some cases, though only under specific circumstances. Certain debts, like court fines, student loans and child maintenance, are usually excluded. If you’re dealing with unpaid court fines, an Administration Order might be a more appropriate solution.
Non-priority debt
Non-priority debts don’t carry the same legal risks, but your creditors can still charge interest and take court action if they are left unpaid. Non-priority debts include:
- Credit card or store card debt
- Overdrafts
- Water bills
- Personal loans
- Catalogue debt
- Payday loans
- Buy now, pay later agreements.
Many debt help solutions, such as IVAs, DMPs, and DROs, are designed to help with non-priority debts. We can offer debt advice and if applicable, recommend the best debt solution for you based on your financial situation.
Debt Help and Mental Health: What Support Is Available?
Money worries can seriously affect your mental health and poor mental health can make it even harder to manage money, causing a vicious cycle.
At MoneyPlus, we offer compassionate, confidential support that recognises the emotional toll debt can take. Our team is trained to handle sensitive situations with care, offering a judgment-free space where you can talk openly. We can also advise on the debt help options available to you.
Creditor negotiation
If you have a mental illness that impacts your debt repayment, it may be a good idea to share this with your creditors. In certain cases, those with mental health conditions are protected by the 2010 Equality Act, which outlines that your creditors must make reasonable adjustments to help you. For example, they may agree to:
- pause collection activity
- only contact you at set times and in certain ways, e.g. letters rather than phone calls
- not pass your details to a debt collection agency
- use a specialist to deal with your case
- write off some of your debt.
When negotiating a plan of action with your creditors, they may ask for evidence. If they don’t accept evidence such as a prescription or appointment letter, consider using the Debt and Mental Health Evidence Form (DMHEF).
DMHEF is recognised by the Financial Conduct Authority (FCA), the organisation that regulates the credit industry. This form should be filled in by a healthcare professional who will provide details of your mental health condition and how it affects your ability to manage your money. Your creditor can then use this to assess what level of support you need.
Mental Health Crisis Breathing Space
Breathing Space, or Debt Respite Scheme, is a Government initiative that offers temporary legal protection from creditors while you get debt advice and decide your next steps. In addition to the standard Breathing Space, there is a Mental Health Crisis Breathing Space (MHCBS). You may be eligible for this if:
- you’ve been detained under the Mental Health Act
- you’ve been removed to a place of safety under the Mental Health Act
- you’re receiving crisis care from a specialist mental health team.
A MHCBS lasts for the length of your crisis treatment and an additional 30 days. It is available any time you are receiving crisis treatment. While you have MHCBS, creditors can’t contact you about payment, add charges or interest or proceed with enforcement action on debts included in your MHCBS.
Common Questions About Getting Help with Debt
Can Debt Help Stop Creditors or Bailiffs?
This depends on whether you’ve entered a formal debt solution, such as an IVA or DRO, both of which offer legal protections and prevent creditors from taking further action. However, it’s important to note that this will only apply to debt included in the debt solution. This means that you may still receive creditor contact or face bailiffs for debts such as court fines or student loans, which are usually excluded from these debt solutions.
Will getting debt help affect my credit score?
Debt help may affect your credit score, depending on the type of solution you choose. For example, entering a formal arrangement like an IVA or bankruptcy will usually appear on your credit file for six years. Informal plans, like a DMP, can also impact your score if you miss any payments.
However, if you’re already missing payments or behind on bills, your credit score may already be affected and getting help is often the first step towards rebuilding it over time.
What happens if I don’t pay my debt?
If you fail to keep up with payments on a debt you owe, your creditors may charge extra fees, take legal action, or pass your debt to a collections agency. You could also receive a County Court Judgment (CCJ), which means the court has formally confirmed you owe the money. Your CCJ will come through by post, and will include details of how much you owe, how to pay and the deadline. You then have 14 days after you receive it to respond.
If you receive a CCJ, it’s important that you don’t ignore this as this can have serious consequences on your financial situation and could lead to further action. Our team can help you through the process of responding to a CCJ and talk you through the options available to you for paying off the debt.
Can benefits help with debt?
If you have a low income, paying off debts can be especially challenging, so it’s important to consider whether you qualify for benefits. There are several benefit payments available in the UK to help support you and improve your overall financial situation, including:
- Universal credit – a means-tested benefit for working age people who are on a low income
- Jobseeker’s allowance (JSA) – for those out of work and actively looking for employment
- Income support – for those on low income or earning no money at all
- Housing benefit – for those on low income who need support paying rent
- Child benefit – a certain amount of money assigned for every child you have
Can I inherit debt if someone passes away?
Generally, you won’t inherit personal debt from someone who has died. Any outstanding debts will be settled from the deceased’s estate, which consists of their belongings and assets. If there isn’t enough to cover everything, most debts go unpaid and surviving relatives aren’t usually responsible.
However, there are certain types of debts that won’t be paid off when someone passes away. For example, if you take out debt with another person, known as joint debt, but that person passes away before the debt has been repaid in full, you will be liable for the remaining balance. Equally, if you inherit a property with a mortgage or home equity loan, you may need to continue payments or settle any debt associated with the property.
Why Choose MoneyPlus Advice for Debt Help?
Here’s why people trust MoneyPlus Advice when they need help with debt:
- Over 25 years of experience
We’ve helped thousands of people successfully manage their debt, delivering trusted, expert support with care and confidence.
- Tailored solutions
Our support is tailored to your specific financial circumstances. We’ll recommend the right steps for you, based on your needs and goals.
- Ongoing support when you need it
We’re here for more than just a quick fix. From budgeting help to checking in on your progress, we’ll support you at every stage.
Contact Us for Confidential Debt Help Today
Here at MoneyPlus, we can offer advice and help with debt management. Don’t hesitate to get in touch with one of our experts today. Alternatively, you can get free debt advice from MoneyHelper.