10 Debt Advice Tips That Can Actually Help You Get Back on Track
Published 19th of April 2012·Updated 19 April 2026
Reviewed by: Reviewed for accuracy April 2026
If you are struggling with debt, the single most important thing you can do is face it directly. Ignoring letters and phone calls allows debts to grow through interest and charges and increases the risk of creditors taking legal action. The steps below give you a practical, ordered approach to getting back in control.
Short Summary
Contact your creditors early. Lenders respond much better to someone who gets in touch proactively than to someone who goes silent. Many banks and credit card providers have dedicated hardship teams who are trained to help.
Work out your actual budget before you contact anyone. Knowing exactly what you can afford to pay each month gives you a clear, honest basis for negotiation.
Prioritise your debts correctly. Mortgage or rent, council tax, and energy bills are priority debts because the consequences of not paying them (losing your home, a court summons, disconnection) are more severe than the consequences of falling behind on a credit card.
Free, specialist debt advice is available in the UK and there is no reason to pay for it. StepChange (0800 138 1111) and National Debtline (0808 808 4000) offer confidential, expert guidance at no charge.
Tip 1: Acknowledge the problem directly
The worst thing you can do with debt is ignore it. Missed payments lead to default notices, which damage your credit file. Defaults lead to county court judgements (CCJs). CCJs can lead to bailiff action. Each step is harder to resolve than the one before it.
Write down everything you owe: the creditor's name, the balance, the interest rate, and the minimum payment. Seeing the full picture on paper is uncomfortable, but it is the only way to make a plan.
Tip 2: Work out your monthly budget
List your monthly income and all your essential outgoings: rent or mortgage, council tax, gas and electricity, food, travel to work, and any other non-negotiable costs. The amount left after these is what you have available to repay debts.
Use the budget calculator on the National Debtline website (nationaldebtline.org) or the StepChange budget tool if you need help structuring this. Be honest and thorough; an inaccurate budget will lead to repayment offers you cannot sustain.
Tip 3: Prioritise your debts correctly
Not all debts carry the same urgency. Priority debts must be paid first because the consequences of not paying them are most severe.
| Priority debts | Non-priority debts |
|---|---|
| Mortgage or rent arrears | Credit card balances |
| Council tax arrears | Personal loan payments |
| Gas and electricity arrears | Overdrafts |
| Court fines | Catalogue or store card debt |
| Child maintenance arrears | Payday loan balances |
Once priority debts are covered, distribute what remains between non-priority creditors proportionally.
Tip 4: Contact your creditors and make a repayment offer
Once you know your available budget, write to each creditor and explain your situation. Offer to pay your proportional share of the available budget. Ask them to freeze interest and charges while you repay.
Be specific: "I can afford to pay £X per month towards this account" is far more productive than a vague request for leniency. Most major lenders including Barclays, Lloyds, HSBC and the main credit card providers have hardship processes in place and are required by the Financial Conduct Authority (FCA) to treat customers in financial difficulty fairly.
Tip 5: Keep every communication recorded
Keep copies of every letter you send and receive. When you speak to a creditor by phone, note the date, the name of the person you spoke to, and a summary of what was agreed. This record protects you if a creditor later denies an agreement was reached.
Send important communications by recorded post or email so you have a delivery record. If you reach an agreement, ask for written confirmation before making any payments under the new terms.
Tip 6: Know your rights if a creditor treats you badly
Creditors and debt collection agencies must follow the FCA's debt collection rules. They cannot call at unreasonable hours, threaten you with consequences they cannot legally carry out, or harass you. If a collector behaves aggressively or misleadingly, you can report them to the FCA or the Financial Ombudsman Service.
You can also ask a creditor or collector to communicate only in writing. This is a legal right and can significantly reduce the stress of managing debt.
Tip 7: Avoid taking on more borrowing to pay debts
Debt consolidation loans can seem appealing, but they often extend your repayment term and may carry a higher interest rate than you expect, particularly if your credit score has been damaged by missed payments. Rolling unsecured debt into a secured loan (one backed by your home) is especially risky.
Before consolidating, get free debt advice from StepChange or Citizens Advice. There may be a better solution that does not involve adding new borrowing.
Tip 8: Stick to every commitment you make
If you agree to pay a creditor £50 per month, pay it on time every month. Creditors who agree to reduced payments or frozen interest can withdraw those concessions if you miss an agreed payment. Reliability is the foundation of any successful debt repayment arrangement.
Set up standing orders where possible so that payments go out automatically on a fixed date each month. This removes the risk of forgetting and ensures creditors can see consistent payment behaviour on your account.
Tip 9: Use free professional help
Debt advice in the UK is free if you use the right services. You do not need to pay a fee management company.
- StepChange: 0800 138 1111 or stepchange.org
- National Debtline: 0808 808 4000 or nationaldebtline.org
- Citizens Advice: citizensadvice.org.uk
If you receive a court summons or a formal legal notice, read every document carefully and contact Citizens Advice or a solicitor immediately. Missing a court deadline can result in a CCJ being issued by default, even if you have a valid defence.
Tip 10: Keep creditors updated as your situation changes
Your financial situation is not static. If your income drops, you lose your job, or an unexpected expense makes it impossible to maintain your agreed payments, contact your creditors before you miss a payment. Explaining the situation in advance is far better than going silent.
Equally, if your income improves and you can pay more, proactively increasing your payments shortens the repayment period and reduces the total interest you pay. Creditors respond positively to borrowers who communicate regularly and honestly.
Frequently Asked Questions
What should I do first if I am struggling with debt?
Start by writing down everything you owe, then work out your monthly budget. Once you know what you can afford to repay, contact your creditors directly and offer reduced payments. If you are unsure where to start, call StepChange on 0800 138 1111 for free, confidential guidance.
Can creditors refuse a reduced payment offer?
Yes. An informal arrangement is not legally binding on creditors. However, the FCA requires lenders to treat customers in financial difficulty fairly, and most major lenders will consider a reasonable offer rather than escalate to court action unnecessarily.
Will contacting my creditors damage my credit score?
Not directly. What damages your credit score is missed payments and defaults. Contacting a creditor to arrange a lower payment may result in your account being marked as "arrangement to pay," which does affect your file, but this is less damaging than a default or CCJ.
Is it worth paying a company to help me with my debts?
No. Free services including StepChange, National Debtline and Citizens Advice provide the same quality of advice without charging fees. Fee-charging debt management companies take a proportion of your payments as their fee, which means less money reaches your creditors and your debts take longer to clear.
What happens if I ignore my debts?
Ignored debts accrue interest and charges, your credit score deteriorates, and creditors may pass the debt to a collection agency or apply to the court for a CCJ. A CCJ remains on your credit file for six years and can lead to further enforcement action including an attachment of earnings order or, in serious cases, bailiff visits.
How long does it take to get out of debt?
It depends on how much you owe and how much you can repay each month. A debt adviser can give you a realistic timeline based on your specific figures. Many people find that a structured repayment plan, even with modest monthly payments, gives them a clear end date and a much stronger sense of control.