GETTING DEBT ADVICE FOR FREE
You can get free advice and practical help from organisations including Citizens Advice, (www. citizensadvice.org.uk/debt-and-money/), StepChange (www.stepchange.org), and National Debtline (www. nationaldebtline.org). Never pay for debt advice, so don’t call one of those debt management companies you see advertised on daytime TV, as they’ll usually want a chunk of your cash in exchange for any help.
When it comes to tackling and repaying debts there are different options depending on where you live, how much you owe, and your circumstances and means to repay. Here’s a brief rundown of options, but all the organisations listed (left) can explain in more detail and help you decide on the right step for you.
StepChange say options in England, Wales and Northern Ireland include:
Debt Relief Order, (DRO), a low cost alternative to bankruptcy, for debts under £20,000.
Individual Voluntary Arrangement, (IVA), which means making reduced payments towards your debts, typically over five to six years.
Bankruptcy is usually a last resort if you have no means of repaying debts as you can lose your home.
In Scotland the situation is different. The Debt Arrangement Scheme, offers an option to repay
payments, over an agreed period of time without the fear of legal action, while the Scottish form of bankruptcy is known as Sequestration. Find out more here. www.citizensadvice.org.uk/scotland/ debt-and-money/help-with-debt/