Debt options
General information only. Nothing on this page is advice or a recommendation.
There are a number of different ways people deal with problem debt in the UK. Which of them, if any, is appropriate depends entirely on your individual circumstances, and only an FCA-regulated adviser can tell you that. The summaries below are general information so you know what the terms mean.
Debt Management Plan (DMP)
An informal arrangement where you make one monthly payment towards your unsecured debts, usually managed by a third party.
Individual Voluntary Arrangement (IVA)
A formal, legally binding agreement between you and your creditors, available in England, Wales and Northern Ireland.
Debt Relief Order (DRO)
A formal option for people with lower levels of debt, low income and few assets, subject to strict eligibility criteria.
Bankruptcy
A formal insolvency procedure with significant consequences that should only be considered with regulated advice.
Trust Deed / Debt Arrangement Scheme
Scottish equivalents of some of the arrangements above, with their own rules.
Talking to your creditors directly
Many creditors have hardship processes and it is always free to speak to them yourself.
Freedom Debt Advice does not tell you that you qualify for, or have been approved for, any of the above. We are not authorised and regulated by the Financial Conduct Authority.
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