Author: Alex Swindells

What To Do If Bailiffs Are At Your Door

Written by Alex Swindells on March 18, 2026. Posted in Debt help.

Updated for 2026

A knock on the door from bailiffs is one of the most stressful experiences you can face when dealing with debt. If you have fallen behind on payments and ignored warning letters, a creditor may instruct enforcement agents to visit your home to collect what you owe, or seize belongings to cover the amount.

The good news is that bailiffs must follow strict rules set out in the Taking Control of Goods Regulations 2013. Knowing your rights can make a real difference in how you handle the situation. This guide explains exactly what bailiffs can and cannot do in 2026, what they are allowed to take, and the steps you can take to protect yourself.

What Are Bailiffs?

Bailiffs, officially known as enforcement agents, are individuals authorised to collect unpaid debts on behalf of creditors. They are certified by the courts, although most work for private enforcement companies rather than being directly employed by the court service.

Their main powers include:

Visiting your home to collect payment or seize goods
Removing items from your property to sell at auction
Taking belongings from outside your home, including vehicles parked on your driveway or the street
Delivering court documents

If a bailiff cannot gain peaceful entry to your property, they may, depending on the type of debt, apply to the court for a warrant allowing them to use reasonable force. This is relatively uncommon for standard consumer debts but does happen with certain types of enforcement, such as unpaid criminal fines or HMRC tax debts.

Types of Bailiff in the UK

There are several types of enforcement agent, each with different powers depending on who they represent and which court has issued their authority.

High Court Enforcement Officers (HCEOs)

These officers enforce High Court Writs of Control. They deal with debts that have been transferred up from the county court (typically over £600) or judgments originally made in the High Court. HCEOs tend to handle larger debts and have broader enforcement powers than county court bailiffs.

County Court Bailiffs

Employed directly by HM Courts and Tribunals Service, county court bailiffs enforce county court judgments. They can collect debts of up to £5,000 using a Warrant of Control, or seize goods to sell at auction to cover what you owe.

Certificated Enforcement Agents

Since the reforms introduced by the Tribunals, Courts and Enforcement Act 2007, these agents are certified by a judge at a county court. They can enforce a range of debts including council tax arrears, parking fines, rent arrears, and business rates. They are the most common type of enforcement agent you are likely to encounter.

What Can Bailiffs Take From Your Home?

Once a bailiff has lawfully entered your property, they can list and remove certain items to sell and put towards your debt. Understanding what they can and cannot take helps you protect your belongings.

Items bailiffs can take

Luxury goods such as televisions, games consoles, and jewellery
Items that belong to you, or items you own jointly with someone else
Vehicles parked at or near your property (subject to certain conditions)
Antiques, collectibles, and non-essential electronics

Items bailiffs cannot take

Bailiffs are prohibited from seizing goods that fall under the “exempt goods” rules. These include:

Essential household items you need to live, such as a cooker, fridge, washing machine, bed, and table and chairs
Items belonging to someone else (third-party goods), provided there is evidence of ownership
Goods you are still paying for on finance or hire purchase
Tools, equipment, vehicles, and other items you need for your work, up to a combined value of £1,350
A vehicle displaying a valid Blue Badge
Pets and assistance dogs
Items that would cause structural damage to the property if removed

If a bailiff tries to take exempt goods, tell them clearly why the items are protected and provide evidence where you can. If they still remove them, you have seven days to make a formal complaint. The bailiff must respond within ten days. If you do not get a satisfactory response, escalate your complaint directly to the creditor. You can also report the matter to the Civil Enforcement Association (CIVEA) or the court that issued the warrant.

Can Bailiffs Force Entry Into Your Home?

This is one of the most common questions people ask, and the answer depends on the type of debt involved.

For most consumer debts, such as credit cards, personal loans, and catalogue debts, bailiffs cannot force their way in. They can only enter your home through a door that is already open or unlocked, or if you invite them in.

Key rules to be aware of:

You do not have to open the door. Keep it locked, and communicate through the letterbox or a window if you choose to speak with them
They cannot push past you or use physical force to enter for standard debts. If a bailiff threatens you, call 999
If only children under 16 are present, a bailiff must not enter the property
Bailiffs are not permitted to visit between 9pm and 6am unless they have specific court authority
They must give you at least seven days’ written notice before their first visit (called a Notice of Enforcement)

There are exceptions. Bailiffs enforcing unpaid criminal fines, HMRC tax debts, or some magistrates’ court penalties may have the legal right to force entry, and in rare cases, may use a locksmith. However, even then, they must act within the law and follow proper procedures.

It is also important to understand the difference between a bailiff and a debt collector. Debt collectors do not have the same legal powers. If someone at your door says they are a debt collector, you are within your rights to ask them to leave.

What to Do When Bailiffs Arrive

If bailiffs turn up at your door, try to stay calm. You have more control than you might think. Here is what to do:

Keep the door locked and ask them to identify themselves through the letterbox. Ask for their name, the company they work for, and the debt they are collecting
Ask them to pass their enforcement notice and ID through the letterbox or under the door so you can verify it
Do not let them in if you are unsure. For most debts, they cannot force entry on the first visit
Contact a free debt advice service immediately. Citizens Advice can help you understand your rights in real time
If you can afford to, offer a payment plan. Many bailiffs will accept a reasonable arrangement to avoid further enforcement action

If the situation feels threatening or you believe a bailiff is acting outside the law, document everything. Take notes of what was said, photograph any damage, and report the incident through the official complaints process.

How to Stop Bailiffs Before They Visit

The best way to deal with bailiffs is to act before they arrive. If you have received a county court judgment (CCJ) or warning letters about enforcement, you still have options.

Seeking professional debt advice early can open up solutions that stop bailiff action entirely. For example:

An Individual Voluntary Arrangement (IVA) is a formal agreement with your creditors to repay a portion of your debt over a fixed period, typically five or six years. Once an IVA is in place, creditors must stop all enforcement action, including bailiff visits. You can read more about the protection an IVA offers on our dedicated page
A Debt Relief Order (DRO) could be suitable if you owe less than £50,000, have minimal assets worth under £2,000 (excluding a vehicle worth up to £4,000), and your monthly disposable income is £75 or less
Bankruptcy is another option for those with more serious debt problems, though it comes with significant consequences that you should understand fully before proceeding

Each situation is different, so getting tailored advice is essential. Contact Swift Debt Help to discuss your circumstances and find out which debt solution could work for you.

Your Rights When Dealing With Bailiffs

Understanding your legal rights is your strongest defence. Here is a summary of the main protections available to you under UK law in 2026:

You must receive a Notice of Enforcement at least seven clear days before the first visit
Bailiffs must carry valid identification and show it when asked
They cannot enter your home by force for most consumer debts
They cannot seize essential household items, tools of your trade (up to £1,350), or goods belonging to other people
They must not visit between 9pm and 6am without a specific court order
They cannot use threatening behaviour or intimidation
You have the right to complain if a bailiff breaks the rules

For a full breakdown of your legal rights, the GOV.UK guide to bailiffs is the most authoritative source.

Get Help With Debt Today

If you are worried about bailiffs or struggling with debt, do not wait until enforcement action begins. The sooner you seek advice, the more options you have available to you.

Swift Debt Help offers free, confidential guidance on debt solutions including IVAs, DROs, and other formal arrangements. Our team can help you understand your situation and take the right steps to regain control of your finances.

Get in touch with Swift Debt Help today to start your journey towards becoming debt-free.

Disclaimer: This article is provided for informational purposes only and does not constitute financial advice. Debt solutions such as IVAs, DROs, and bankruptcy have serious implications and may not be suitable for everyone. Always seek professional advice tailored to your individual circumstances before making any financial decisions. Swift Debt Help is not a lender.

How to Use Your Credit Card Efficiently: A Practical UK Guide for 2026

Written by Alex Swindells on March 18, 2026. Posted in Credit Score.

Updated for 2026

A credit card can be a genuinely useful financial tool when you use it the right way. It lets you spread costs, build your credit history, and handle unexpected expenses without draining your current account. The trouble starts when spending gets out of control or repayments slip through the cracks.

This guide covers practical ways to use your credit card efficiently in 2026, so it works for you rather than against you.

What Is a Credit Card and How Does It Work?

A credit card gives you access to a pre-approved credit limit, which is essentially borrowed money you can spend up to a set amount. Each month you receive a statement showing what you owe, and you need to make at least the minimum payment by the due date.

Interest is charged on any balance you carry over from month to month, unless you are on a 0% introductory deal. The interest rate (known as the APR) varies between cards, so always check this before you apply. The MoneyHelper credit card guide has a useful breakdown of how different card types work.

Used sensibly, a credit card helps you build a strong credit score. Used carelessly, it can lead to debt that spirals quickly.

7 Tips for Using Your Credit Card Efficiently

1. Use It to Spread the Cost of Larger Purchases

One of the biggest advantages of a credit card is the ability to spread an unexpected cost over several months. If your boiler breaks down or your car needs urgent repairs, you can cover the expense without emptying your savings.

This is particularly useful if your card offers a 0% purchase period. You can pay off the balance in manageable chunks without paying any interest at all, provided you clear it before the promotional period ends.

It often works out cheaper than a store finance deal too. Retailers frequently charge higher interest rates on buy-now-pay-later plans, so putting the purchase on a 0% credit card and paying it off over a few months can save you money.

2. Always Pay More Than the Minimum

Paying only the minimum each month is one of the most common causes of a worsening credit position. Minimum payments barely touch the actual balance, meaning your debt lingers for years and the total interest paid balloons.

Set up a direct debit for an amount that makes a real dent in the balance each month. If you can clear the full amount, even better. This keeps your available credit high and shows lenders that you manage money responsibly.

3. Do Not Treat It as Free Money

Before you tap your card, ask yourself: can I realistically pay this back within a few months? If the answer is no, think twice. Credit card debt can build up faster than you expect, especially once interest kicks in.

If you find yourself relying on credit to cover everyday spending like groceries or fuel, that is a warning sign your budget needs attention. Our guide on practical tips for dealing with debt has some straightforward steps you can take.

4. Be Careful During a Mortgage Application

Planning to buy a home or remortgage? Keep your credit card spending low in the months leading up to your application. Mortgage lenders look closely at your credit report and want to see that you are not relying heavily on borrowed money.

The more unused credit you have available, the better it looks. A maxed-out card signals financial pressure, which could affect the interest rate you are offered or whether you get approved at all. You can read more about this in our guide on improving your credit score before a remortgage.

5. Never Miss a Payment

Late payments get recorded on your credit file and stay there for six years. Even one missed payment can knock your credit score and make future borrowing more expensive.

Set up at least a minimum payment direct debit as a safety net, so you never miss a due date even if you forget. Then make additional payments on top when you can.

If you are genuinely struggling to keep up with repayments, contact your card provider sooner rather than later. They may be able to freeze interest, reduce your payments, or set up a temporary arrangement. The FCA’s guidance on credit cards explains your rights and what to expect.

6. Avoid Cash Withdrawals on a Credit Card

Withdrawing cash on a credit card is expensive. Most providers charge a fee (typically around 3% of the amount) and start charging interest immediately, with no interest-free period. This makes it one of the costliest ways to access cash.

If you need cash in a pinch, a money transfer card might be an option, though these also come with fees. As a rule, keep your credit card for purchases only.

7. Check Your Statements Regularly

Get into the habit of reviewing your credit card statement every month. Look for any transactions you do not recognise, check the interest being charged, and keep an eye on how much of your credit limit you are using.

Staying on top of your account helps you spot problems early, whether that is an unauthorised transaction or the realisation that your spending has crept up. If your debt is starting to affect your wellbeing, getting help sooner always leads to better outcomes.

What to Do About Credit Card Debt You Cannot Manage

If you have fallen behind on repayments and the balance keeps growing, you are not alone. Credit card debt is one of the most common types of unsecured debt in the UK, and there are formal solutions designed to help.

An Individual Voluntary Arrangement (IVA) lets you make one affordable monthly payment towards your debts over a fixed period, typically five or six years. At the end of the arrangement, any remaining debt included in the IVA is written off. You can check whether your debts qualify in our guide on what debts can be included in an IVA.

Other options include debt consolidation, a Debt Relief Order (for smaller debts), or a Debt Management Plan. The right solution depends on your circumstances, including how much you owe, your income, and your assets.

If you are unsure where to start, Citizens Advice offers free, impartial guidance on managing credit card debt. You can also get in touch with Swift Debt Help for a free, no-obligation debt assessment.

Key Takeaways

Use your credit card for planned or emergency purchases you can realistically pay back
Always pay more than the minimum to avoid long-term interest costs
Keep spending low before applying for a mortgage
Never withdraw cash on a credit card
Review your statements monthly and act on any issues quickly
If debt becomes unmanageable, explore formal solutions like an IVA

Swift Debt Help provides information and guidance on debt solutions available in the UK. We are not financial advisers. If you are unsure whether a particular debt solution is right for you, we recommend seeking independent financial advice. All debt solutions have specific eligibility criteria and may have implications for your credit rating and financial circumstances.

Request a Debt Assessment

Disclaimer: For guidance only. Financial information entered must be accurate and would require verification. Other factors will influence your most suitable debt solution.

How to Improve Your Credit Score Before a Remortgage

Written by Alex Swindells on March 18, 2026. Posted in Credit Score, Mortgage.

Updated for 2026

If you are thinking about remortgaging your property, your credit score should be one of the first things you look at. A stronger score opens the door to better rates, lower monthly payments, and a wider choice of lenders willing to approve your application.

Your credit score is a number based on the information held in your credit report. Lenders, creditors, the Electoral Roll, and even your local council all feed data into that report, painting a picture of how you have managed money over the years.

The score itself depends on which credit reference agency you check with. Experian scores out of 999, while TransUnion caps at 710 and Equifax uses a scale up to 1,000. Each agency weighs your data slightly differently, so do not panic if your numbers vary from one to the next.

What Does Remortgaging Actually Mean?

Remortgaging is the process of replacing your current mortgage with a new one, either with the same lender or a different one. Some homeowners do this to lock in a better interest rate once their fixed deal ends. Others use it to release equity from their property, freeing up cash to clear outstanding debts or fund home improvements.

The equity you release is not taxed, and a well-structured remortgage can reduce your monthly outgoings. That said, it is not always the right move. If your credit score is low, you may be offered higher rates that cancel out any savings, or you may struggle to get approved at all.

What If You Cannot Remortgage?

If remortgaging is not an option, there are formal debt solutions worth exploring. An Individual Voluntary Arrangement (IVA) is a legally binding agreement between you and your creditors. You make a single affordable monthly payment based on what you can genuinely afford after covering essentials like rent, bills, and food. After a set period (usually five or six years), any remaining qualifying debt is written off.

For smaller debts, a Debt Relief Order (DRO) might suit you better. To qualify, your total debt must be under £50,000, your monthly surplus must be £75 or less, your assets must not exceed £2,000 (excluding a vehicle worth up to £4,000), and you must not be a homeowner.

If you have been through an IVA or any other debt solution, you may wonder whether a mortgage is still possible. The answer is yes, although timing and preparation matter. Our guide on getting a mortgage after an IVA covers the steps in detail.

Why Has Your Credit Score Dropped?

Credit scores rise and fall for all sorts of reasons. Understanding what causes a decreased credit score can help you avoid common pitfalls. Here are some of the most frequent triggers:

Missing a payment or making one late
A default, CCJ, or other derogatory mark appearing on your report
Using too much of your available credit (high utilisation)
Having your credit limit reduced by a lender
Closing an old, well-managed account
Applying for several new credit products in a short space of time
Errors or outdated information sitting on your report unchallenged

Seven Practical Ways to Boost Your Credit Score Before Remortgaging

1. Pay Every Bill on Time

Payment history is the single biggest factor in your credit score. Even one missed payment can leave a mark that stays on your report for six years. Set up direct debits for every regular bill, from your mobile phone contract to your council tax, so nothing slips through the cracks.

2. Keep Credit Utilisation Below 30%

Credit utilisation is the percentage of your available credit that you are currently using. If you have a credit card with a £5,000 limit and a £4,000 balance, that is 80% utilisation, which looks risky to lenders. Aim to keep it below 30%, and ideally below 25%, in the months leading up to your remortgage application.

3. Avoid Hard Credit Searches

Every time you formally apply for credit, the lender runs a hard search on your file. Too many in a short window makes it look like you are desperate for money. Before remortgaging, avoid taking out new credit cards, loans, or phone contracts. Where possible, ask companies to run a soft search instead, as these are only visible to you and will not affect your score.

4. Settle Outstanding Debts Where You Can

Multiple outstanding balances drag your score down. If you can clear any smaller debts before applying, do so. Focus on the accounts with the highest interest rates first. If full repayment is not realistic, even reducing balances shows lenders you are taking control. Our guide to dealing with debt has more practical advice on this.

5. Check Your Credit Report for Errors

Mistakes on credit reports are more common than you might think. An old address that was never updated, a debt marked as outstanding when it was paid off years ago, or even someone else’s account showing on your file by mistake. Check your report with all three main agencies (Experian, Equifax, and TransUnion) and dispute anything that looks wrong. You can do this for free through services like CheckMyFile or directly with each agency.

6. Register on the Electoral Roll

This is one of the quickest wins available. Being on the electoral roll confirms your name and address, making it easier for lenders to verify your identity. If you are not registered, you can sign up on the GOV.UK website in about five minutes. Some people see a noticeable score increase within weeks of registering.

7. Space Out Your Credit Applications

If you do need to apply for credit before remortgaging, leave at least three to six months between each application. Clustering applications together signals financial stress to lenders and can knock your score each time. Plan ahead and only apply for products you genuinely need.

How Long Does It Take to Improve a Credit Score?

There is no overnight fix. Small changes like registering to vote or correcting an error can show results within a month or two. Bigger improvements, such as reducing your credit utilisation or building a consistent payment history, typically take three to six months to make a meaningful difference.

If you are planning a remortgage, start working on your credit score at least six months before you intend to apply. That gives you enough time to make real progress without rushing.

Struggling With Debt? You Still Have Options

If debt is the reason your credit score is suffering, tackling the root cause is just as important as chasing a higher number. Solutions like an IVA, a debt consolidation loan, or a DRO can give you a structured path out of debt, and once you complete them, you can start rebuilding your score from a clean slate.

If you are not sure which route is right for you, read our breakdown of how to improve your credit score after an IVA, or explore the different remortgage options available through Swift Debt Help.

Disclaimer: This article is for general information only and does not constitute financial advice. If you are struggling with debt, we recommend speaking to a qualified debt adviser. Swift Debt Help can connect you with FCA-authorised professionals who will assess your situation and recommend the most appropriate solution for your circumstances.

Request a Debt Assessment

Disclaimer: For guidance only. Financial information entered must be accurate and would require verification. Other factors will influence your most suitable debt solution.

7 Practical Tips for Dealing With Debt in 2026

Written by Alex Swindells on March 18, 2026. Posted in Debt help.

Updated for 2026

Dealing with debt is one of the most stressful financial situations you can face. Between rising energy costs, higher interest rates, and the ongoing cost of living squeeze, millions of people across the UK are struggling to keep up with repayments. According to the StepChange Debt Charity, the number of people seeking debt advice has risen sharply over the past two years, and average UK household debt continues to climb.

The good news is that there are practical steps you can take right now to regain control of your finances. Whether you owe a few hundred pounds on credit cards or you are juggling multiple creditors, these seven tips will help you start dealing with debt in a structured, manageable way.

1. Tackle Credit Card Debt First

Credit card debt often carries the highest interest rates of any unsecured borrowing. If you have balances spread across multiple cards, the compounding interest can quickly spiral out of control. Focus on paying down the card with the highest rate first while making minimum payments on everything else. This is sometimes called the avalanche method, and it saves you the most money over time.

If you are only able to make minimum payments, that is still better than missing them entirely. Every payment reduces the balance slightly and keeps your account in good standing. If you have three or more lines of credit with at least two creditors, you may qualify for an Individual Voluntary Arrangement (IVA) or a Debt Management Plan. An IVA lets you pay back only what you can realistically afford each month, with any remaining debt written off at the end of the agreed term.

2. Build a Small Emergency Fund

It might seem counterintuitive to save money when you are in debt, but even a modest emergency fund of £200 to £500 can prevent you from borrowing more when something unexpected happens. A broken boiler, a car repair, or an emergency vet bill can push you further into debt if you have no buffer at all.

Always make your contractual debt repayments first. Then, if you have anything left over, put even a small amount aside each month. Over time, this safety net gives you breathing room and stops the cycle of turning to credit every time life throws a curveball. If you are worried about rising utility bills eating into your spare cash, it is worth reviewing your energy tariff and switching providers where possible.

3. Write Down Everything You Owe

You cannot tackle debt effectively if you do not know exactly what you owe. Sit down and list every single debt: credit cards, personal loans, overdrafts, council tax arrears, catalogue accounts, buy now pay later balances, and anything else. Write down the total owed, the monthly payment, the interest rate, and whether you are up to date.

This exercise can feel uncomfortable, but it gives you a clear picture of where you stand. Many people find that their total debt is either less frightening than they imagined, or it highlights that they genuinely need professional help. If the numbers show you cannot realistically afford your repayments, Swift Debt Help can talk you through your options, including formal solutions like an IVA or a Debt Relief Order (DRO).

A DRO may be suitable if your total qualifying debt is under £50,000, your disposable income is no more than £75 per month, your assets are worth less than £2,000, and your vehicle is valued at no more than £4,000. It is a formal insolvency solution that freezes your debts for 12 months, after which they are written off entirely.

4. Prioritise Your Debts

Not all debts are equal. Some carry far more serious consequences if you fall behind. Priority debts include your mortgage or rent, council tax, gas and electricity, and any court fines. Missing payments on these can lead to losing your home, bailiff action, or even imprisonment in extreme cases.

Non-priority debts, such as credit cards, personal loans, and catalogue accounts, still matter, but the consequences of missed payments are generally less severe in the short term. Creditors may add late fees or pass the debt to a collection agency, but they cannot take your home or send you to prison.

If after covering your priority debts you do not have enough left for non-priority creditors, that is a strong signal you need formal debt advice. Get in touch with Swift Debt Help to explore what is available to you. You can also read about whether an IVA or DRO is right for your situation.

5. Create a Realistic Budget

A proper budget is the backbone of any debt repayment plan. Start by listing your income and all essential outgoings: housing, utilities, food, transport, insurance, and minimum debt payments. Whatever is left is your disposable income, and this is what you have to work with.

Look for areas where you can cut back. Meal planning can save a surprising amount on your weekly shop. Switching energy providers, cancelling unused subscriptions, and shopping around for insurance can free up money too. Even small savings of £20 or £30 a month add up over the course of a year, and that extra cash can go towards clearing your debts faster.

If you are dealing with debt while unemployed, budgeting becomes even more critical. Make sure you are claiming any benefits you are entitled to, and contact your creditors to explain your situation. Most will work with you if you are upfront about your circumstances.

6. Ask for Help Early

One of the biggest mistakes people make when dealing with debt is waiting too long to seek help. The longer you leave it, the more interest builds up, the more stressed you become, and the fewer options you may have. Research from Citizens Advice shows that people who get debt advice early are far more likely to resolve their situation successfully.

Debt can also take a serious toll on your wellbeing. If you are finding that money worries are affecting your sleep, your relationships, or your ability to function day to day, you are not alone. There is a strong link between spiralling debt and mental health problems, and getting support sooner rather than later can make a real difference.

Contact Swift Debt Help for free, confidential advice. We will explain your options clearly, with no pressure and no judgement. You can also use our online debt solution finder to get a quick idea of which solutions may suit your circumstances.

7. Cut Non-Essential Spending

When you are actively paying down debt, every pound counts. Take an honest look at where your money goes each month. Takeaways, streaming subscriptions, gym memberships you rarely use, impulse purchases online: these all add up. Cutting back temporarily does not mean giving up everything you enjoy forever. It means redirecting that money towards becoming debt-free.

Once your debts are under control and you are meeting all your repayments comfortably, you can gradually reintroduce the things you cut. The short-term sacrifice is worth the long-term freedom. If your credit score has taken a hit during this period, there are steps you can take to rebuild it over time.

What to Do Next

If you have tried these tips and still find yourself struggling, or if your debts feel overwhelming, it is time to get professional support. There are several formal debt solutions available in the UK, including IVAs, DROs, Debt Management Plans, and bankruptcy. The right solution depends on your individual circumstances: how much you owe, your income, your assets, and your household situation.

Swift Debt Help is here to guide you through the process. Use our debt solution finder to take the first step, or call us directly for a no-obligation chat. You can also visit GOV.UK for an overview of debt options available to you.

Financial disclaimer: This article is for general information only and does not constitute financial advice. Debt solutions such as IVAs, DROs, and bankruptcy have serious implications and may not be suitable for everyone. Fees may apply. Your credit rating will be affected. Always seek professional advice before entering into any formal debt solution. Swift Debt Help is a trading style of Swift Debt Help Ltd. We are not a lender.

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Disclaimer: For guidance only. Financial information entered must be accurate and would require verification. Other factors will influence your most suitable debt solution.

Close up portrait of a man in debt showing empty wallet

The 5 Stage Process of Dealing With Debt

Written by Alex Swindells on March 18, 2026. Posted in Debt help.

Updated for 2026

Dealing with debt is something millions of people across England and Wales face every year, yet most suffer in silence. According to the Money Helper service, household debt continues to rise heading into 2026, with the average UK adult carrying over £34,000 in total debt including mortgages. If that number feels overwhelming, you are far from alone.

Mounting debts create enormous stress, and we all develop coping mechanisms to manage it. Below, we have identified five stages many people move through as debt begins to spiral. Understanding where you are in this process could help you take action sooner rather than later.

1. Denial: Ignoring the Debt Problem

Person in denial about dealing with debt, giving thumbs down

Debt is incredibly common, and most people use credit in some form. Borrowing a manageable amount on a credit card and paying it off quickly can actually benefit your credit score. But when debts get out of control, it is important to address the problem straight away. Unfortunately, the first stage of dealing with debt is usually denial.

Even though payments are slipping, people tell themselves they are borrowing responsibly and will easily get back on track next month. Spending habits do not change, luxury purchases continue, and nothing gets put aside for savings or debt repayment.

Emergency spending is also common at this stage. When all of your money goes towards minimum payments and there are no emergency savings, an unexpected bill pushes you deeper into the red. Over time, people in denial avoid checking their bank balance or credit card statements altogether because they are afraid of what they will find.

A large proportion of people in debt denial build up significant unsecured debts across multiple credit cards, store cards, and personal loans. The situation worsens month after month with no intervention.

2. Panic: When Dealing with Debt Becomes Unavoidable

Woman experiencing panic and stress from dealing with debt problems

Denial can only last so long. Interest charges accumulate on unpaid balances, and the situation snowballs. Missed payments and unpaid bills pile up. Creditors send letters and phone calls demanding payment. Eventually, enforcement agents may visit your home, making it impossible to keep avoiding the problem.

This is when panic sets in. Once you realise you are in a serious debt situation with no clear way out, you tend to react in one of two ways. Some people accept they are out of their depth and seek professional help. Others try to manage the problem alone, moving into stage three.

3. Self-Determination: Trying to Fix It Alone

Person researching ways of dealing with debt on a laptop

Sometimes people believe they can fix the problem themselves, or they are too proud to ask for help. Depending on the severity, some people can make positive changes and regain control. Cutting back on non-essentials, switching energy providers, and using budgeting apps can all help.

But often, small changes only make a tiny dent in large debts. Even getting a second job and making major cutbacks can fail to solve the problem, especially when it has been ignored for months or years.

Although you can buy yourself some time, serious debt problems cannot always be resolved alone. In many cases, it is too late for simple budgeting and you need to consider formal debt solutions such as an IVA, a Debt Relief Order, or bankruptcy. It is better to have an honest look at your situation early on, rather than delaying the inevitable.

For context, a Debt Relief Order (DRO) is available if your total debt is under £50,000, your disposable income is no more than £75 per month, your assets are worth less than £2,000, and any vehicle you own is valued at under £4,000. If your debts are larger, an IVA or bankruptcy may be more appropriate. The current bankruptcy application fee is £680.

4. Frustration: The Emotional Toll of Debt

Frustrated woman dealing with debt stress at home

Eventually, you reach a point where you have tried everything and debts are still growing. This is where frustration takes hold, and the debt problem starts bleeding into other areas of your life.

Relationship problems are very common because people hide the scale of their debt. When you finally admit how bad things have become, it can lead to serious tension at home. Many people also isolate themselves from friends and family to avoid difficult conversations.

The combination of helplessness and ongoing stress frequently triggers mental health issues like anxiety and depression. Research from the Mental Health Foundation confirms a clear link between problem debt and poor mental health outcomes.

If you find yourself in this position, you can fill out a “debt and mental health evidence form” (known as a DMHEF) and send it to your creditors. This gives them consent to access information from your doctor about your mental health, so they understand the impact debt is having on you. Many creditors will take this into account when agreeing payment arrangements.

5. Acceptance: Getting Professional Help with Debt

Acceptance stamp representing the final stage of dealing with debt

Acceptance is the final stage. After trying everything else and seeing the toll on your health, relationships, and day to day life, you accept that professional help is necessary.

If you have debts with multiple creditors and cannot keep up with payments, an Individual Voluntary Arrangement (IVA) may be the right option. An IVA allows you to write off a portion of your debt and consolidate everything into one affordable monthly payment. It also provides legal protection from creditor contact, so you can focus on repaying what you owe without the pressure of constant letters and phone calls. Most IVAs last between five and six years.

Being trapped in a cycle of debt can feel hopeless, and you might experience every one of these stages before reaching out. But help is available. At Swift Debt Help, we provide free, confidential advice about the debt solutions available to you across England and Wales. Whether an IVA, DRO, or another option is right for your circumstances, we can guide you through the process step by step.

Use our solution finder tool to explore which option suits your situation, or get in touch directly for a no-obligation conversation with our team.

Request a Debt Assessment

Disclaimer: This article is for general information purposes only and does not constitute financial advice. Financial information entered must be accurate and would require verification. Debt solutions have specific eligibility criteria and may not be suitable for everyone. Other factors will influence your most suitable debt solution. If you are unsure, seek independent financial advice.

What Are The Differences Between Good And Bad Debt?

Written by Alex Swindells on March 18, 2026. Posted in Credit Score, Debt help.

Updated for 2026

Understanding the differences between good and bad debt is one of the most important steps you can take towards better financial health. Not all borrowing works against you. Some forms of debt, when managed carefully, can strengthen your financial position, while others can drag you into a cycle of repayments that becomes difficult to escape.

In this guide, we break down what separates good debt from bad debt, give you real examples of each, and explain what options are available if bad debt has become unmanageable.

What Is Good Debt?

Good debt is borrowing that helps you build long-term value or improve your financial standing. The key feature of good debt is that it works in your favour over time, whether by increasing your net worth, boosting your earning potential, or helping you improve your credit score.

When lenders see that you can manage debt responsibly, it opens up access to better interest rates and more favourable borrowing terms in the future.

Examples of Good Debt

Mortgages: Taking out a mortgage to buy a home is one of the most common forms of good debt. Property tends to appreciate in value over time, so you are building equity with each repayment. A mortgage is a type of secured loan, meaning the property acts as collateral. If your credit score improves during the mortgage term, you may be able to remortgage at a lower rate.

Student loans: Borrowing to fund higher education is generally considered good debt because it increases your earning potential. In England and Wales, student loan repayments only begin once your income exceeds the repayment threshold set by the Student Loans Company, currently £25,000 per year for Plan 2 loans (2025/26 tax year). This makes it a relatively low-risk form of borrowing.

Business loans: If you have a solid business plan and realistic financial projections, borrowing to start or grow a business can be a sound investment. The income generated by the business should, over time, outweigh the cost of the loan.

Credit builder cards: Using a low-limit credit card specifically designed to build your credit history counts as good debt, provided you make every payment on time and in full. Even small, regular purchases paid off monthly can steadily lift your score. Late or missed payments, however, will have the opposite effect and could cause your credit score to decrease.

What Is Bad Debt?

Bad debt is borrowing that does not increase your net worth or generate income, and typically comes with high interest rates that make the total cost of borrowing far greater than the original amount. Bad debt often accumulates when there is no clear repayment plan in place, or when borrowing is used to fund lifestyle spending rather than investments.

Examples of Bad Debt

High-interest credit cards: Credit cards with an APR of 20% or more can quickly make debt unmanageable. If you only make the minimum payment each month, interest compounds and the balance grows. According to the Financial Conduct Authority, UK consumers owed over £58 billion in outstanding credit card debt as of late 2025.

Payday loans: Payday loans are designed for short-term emergencies but carry extremely high interest rates. If you cannot repay the full amount on your next payday, the debt snowballs rapidly. The FCA has capped the cost of payday loans at 0.8% per day, but even with this cap, borrowing £300 for 30 days would cost you £72 in interest alone.

Car finance on depreciating vehicles: A brand-new car loses a significant chunk of its value the moment you drive it away. Taking out a high-interest loan to finance a vehicle that depreciates quickly means you could end up owing more than the car is worth, a situation known as negative equity.

Buy now, pay later schemes: These have surged in popularity across the UK. While they can be interest-free if repaid on time, missed payments can result in late fees and negative marks on your credit file. A 2024 report by Citizens Advice found that one in four BNPL users had struggled to make a repayment.

Store cards: Store credit cards often carry much higher APRs than standard credit cards, sometimes exceeding 30%. The initial discount offered at sign-up rarely justifies the long-term cost if a balance is carried over.

How to Tell the Difference Between Good and Bad Debt

A simple test is to ask yourself: will this borrowing put me in a better financial position in the future? If the answer is yes, and you have a realistic plan to make the repayments, it is more likely to be good debt. If the borrowing funds something that loses value quickly or comes with punishing interest rates, it leans towards bad debt.

Other factors to consider include:

The interest rate: lower is almost always better. Compare the APR before committing.
Your ability to repay: can you comfortably meet the monthly payments without cutting into essentials?
The purpose: does the borrowing fund an asset that appreciates (property, education) or something that depreciates (electronics, clothing)?
The total cost: factor in interest over the full term, not just the monthly amount.

What to Do If Bad Debt Becomes Unmanageable

If you are struggling with bad debt, you are not alone. Millions of people across England and Wales face debt problems every year, and there are formal solutions designed to help.

An Individual Voluntary Arrangement (IVA) is a legally binding agreement between you and your creditors, managed by a licensed Insolvency Practitioner. It allows you to repay what you can realistically afford over a fixed period, typically five to six years, with any remaining unsecured debt written off at the end. An IVA also provides legal protection from creditor action, meaning no more threatening letters or phone calls while the arrangement is in place. You can learn more about the protections on our IVA protection guide.

If your debt level is lower, a Debt Relief Order (DRO) may be more suitable. As of 2026, you can apply for a DRO if your total qualifying debt is under £50,000, your disposable income is no more than £75 per month, your assets are worth less than £2,000, and your vehicle is valued at under £4,000.

For free, impartial guidance, organisations such as MoneyHelper and StepChange offer confidential debt advice at no cost.

Managing Good and Bad Debt: Practical Tips

Whatever your current situation, these steps can help you stay on the right side of borrowing:

Create a monthly budget that accounts for all debt repayments before discretionary spending.
Prioritise paying off high-interest debt first, sometimes called the avalanche method.
Avoid taking on new debt to pay off existing debt unless you are consolidating at a genuinely lower rate. Our guide to debt consolidation myths covers common pitfalls.
Check your credit report regularly through Experian, Equifax, or TransUnion to spot errors and track your progress.
If debt is affecting your wellbeing, speak to a professional. Debt and mental health are closely linked, and support is available.

Get Help With Bad Debt Today

If bad debt is weighing you down and you want to explore your options, Swift Debt Help can point you in the right direction. We provide general information on debt solutions available in England and Wales, including IVAs, DROs, and bankruptcy.

This article is for general information purposes only and does not constitute financial advice. If you need personalised guidance, please consult a qualified financial adviser or contact a free debt charity such as StepChange or MoneyHelper.

Request a Debt Assessment

Disclaimer: For guidance only. Financial information entered must be accurate and would require verification. Other factors will influence your most suitable debt solution.

5 Myths About Debt Consolidation Loans in the UK

Written by Alex Swindells on March 17, 2026. Posted in Uncategorized.

Updated for 2026

Debt consolidation is when you combine several debts into a single loan. You take out one new loan to pay off all your existing debts, leaving you with just one monthly payment to manage. If the interest rate on the new loan is lower than what you were paying before, your monthly payments could drop too.

If you are unsure whether a debt consolidation loan is the right debt solution for your situation, read on. We have broken down five of the most common myths so you can make a more informed decision.

1. Debt consolidation ruins your credit score

When you first apply for a consolidation loan, your credit score may dip slightly. This is normal and usually temporary. The lender will run a hard credit check, which leaves a mark on your file for around 12 months.

The good news is that if you keep up with your new monthly payments on time, your score should start to recover. Staying on the electoral register, keeping old credit accounts open (even with zero balances), and avoiding new applications for a while all help to rebuild your rating.

Over the longer term, consolidating debt can actually improve your credit score because you are demonstrating that you can manage a single, structured repayment plan. So while there is a short-term impact, it should not stop you from getting a mortgage or other credit down the line.

2. You always pay back less with a consolidation loan

This is not guaranteed. A consolidation loan can reduce your monthly outgoings, but the total amount you repay depends on the interest rate and the length of the loan term.

For example, spreading your repayments over a longer period might lower your monthly bill, but you could end up paying more in interest overall. Before signing anything, compare the total cost of your current debts (including interest) against the total cost of the new loan.

If your credit score is low, you may only qualify for a higher interest rate, which could mean paying back more than you would have done sticking with your original arrangements. Always do the maths first.

3. Consolidation just creates more debt

A consolidation loan does not add to your debt. It restructures what you already owe into a single, more manageable payment. The total amount of debt stays the same (or could even decrease if you secure a lower rate).

The risk of “more debt” comes from behaviour after consolidating. If you clear your credit cards with the new loan and then start spending on those cards again, you will end up worse off. The key is to treat consolidation as a fresh start: close or freeze the old accounts and focus on the single repayment.

Some people genuinely find that having just one payment each month, rather than juggling four or five creditors, makes budgeting far easier. That simplicity can be worth a slightly higher total cost if it keeps you on track.

4. You will always save on interest

The interest rate you are offered depends almost entirely on your credit history. Lenders assess your credit report, income and existing commitments before setting a rate.

If you have a strong credit score, you may well secure a competitive rate that saves you money. But if you have missed payments or have a patchy credit history, the rate offered could be higher than what you are already paying on some of your existing debts.

This is why comparing the APR on a consolidation loan against the rates on your current credit cards, overdrafts or other loans is so important. Do not assume consolidation equals cheaper, because it depends on your individual circumstances.

5. Debt consolidation is a scam

Debt consolidation itself is a perfectly legitimate way of managing multiple debts. Banks, building societies and regulated lenders all offer consolidation products.

What you do need to watch out for is unsolicited contact. If a company approaches you out of the blue offering to “fix” your debt problems, that is a red flag. Reputable lenders do not cold-call or send random texts. Always check that any company you deal with is authorised by the Financial Conduct Authority (FCA) before sharing personal or financial details.

If you want to explore consolidation, use well-known comparison websites or speak to your own bank first. You can also get free, impartial advice from services like StepChange or Citizens Advice.

Benefits of a debt consolidation loan

All of your debts are combined into one place, making them easier to track.
Once your original creditors are paid off in full, you will no longer face chasing letters or threats of legal action from them.
You make a single monthly payment, which can simplify your budgeting considerably.
If you secure a lower interest rate, your overall repayment cost could drop.
Successfully repaying a consolidation loan on time can help rebuild your credit score over time.

Is a consolidation loan right for you?

A consolidation loan works best when you can secure a lower interest rate than you are currently paying, and when you are disciplined enough to avoid taking on new credit while repaying it. If your debts are relatively small or you are struggling to meet even minimum payments, other options like a Debt Management Plan, a Debt Relief Order, or an IVA might be more suitable.

If you have been declined for a consolidation loan, or you are finding it hard to keep up with multiple creditors, get in touch with Swift Debt Help. We can talk you through the alternatives and help you find a debt solution that fits your circumstances.

Request a Debt Assessment

Disclaimer: For guidance only. Financial information entered must be accurate and would require verification. Other factors will influence your most suitable debt solution.

Five and twenty pound notes laid out on table

How To Pay Off Debt When You Are Unemployed

Written by Alex Swindells on March 17, 2026. Posted in Debt help, Bankruptcy, IVA.

Updated for 2026

Losing your job is stressful enough without the added pressure of dealing with debt. When the income stops but the bills keep coming, it can feel like there is no way out, especially if you already owe money on credit cards, loans or overdrafts.

The good news is that you do have options. Whether you need short-term breathing room or a longer-term debt solution, there are steps you can take right now to protect yourself and start getting back on track.

Practical Steps to Reduce Your Debt While Unemployed

Before looking at formal debt solutions, there are some straightforward things you can do to limit the damage and keep your finances under control.

Contact Your Creditors Straight Away

Get in touch with your creditors as soon as possible to explain that you have lost your job. Many lenders will offer temporary relief, such as reduced payments or a short payment holiday, on the understanding that you will resume full payments once you are back in work.

Being upfront about your situation is always better than ignoring letters and phone calls. Creditors are more likely to work with you if you communicate early.

Stop Using Credit

It can be tempting to rely on credit cards or overdrafts to cover everyday costs, but this only increases the total amount you owe. If possible, avoid using any form of credit while you are out of work.

Do not be tempted to increase your credit card limit or overdraft either. The short-term relief is not worth the long-term cost, particularly once interest starts building up.

Create a Strict Budget

Go through your outgoings and strip back to essentials only. Cancel subscriptions you do not need, switch to cheaper alternatives where you can, and focus on keeping up with priority bills like rent, utility bills and council tax.

If you have any money left over after covering the basics, put it towards your highest-interest debt first.

Stay Away from Payday Loans

Taking on more debt when you have no income is a recipe for trouble. Payday loans carry extremely high interest rates and can quickly spiral out of control. If you are struggling, look at the formal debt solutions below rather than borrowing more.

Check Your Benefits Entitlement

If you are not already claiming, make sure you check what you are entitled to. Universal Credit, Jobseeker’s Allowance and other support can provide a lifeline while you search for new employment. The GOV.UK benefits calculator can help you work out what you could claim.

Debt Solutions Available When You Are Unemployed

If your debts have become unmanageable, there are several formal options that could help. Each one works differently, so the right choice depends on your circumstances, including how much you owe and what assets you have.

Breathing Space Scheme

If you live in England or Wales, the Government’s Breathing Space scheme gives you temporary protection from your creditors for up to 60 days. During this period:

Creditors cannot chase you for payments
No enforcement action can be taken against you
Interest and charges on your debts are frozen

You will still be responsible for repaying your debts once the 60 days are up, but this window gives you time to get proper debt advice and explore your options. To apply, speak to a debt adviser who can check your eligibility and submit an application on your behalf through the MoneyHelper website.

Debt Relief Order (DRO)

A DRO puts your debts on hold for 12 months. If your situation has not improved by the end of that period, any qualifying debts are written off entirely.

To qualify for a DRO, you must:

Owe no more than £50,000 in total
Have less than £75 per month left over after paying essential living costs
Not be a homeowner
Live in England, Wales or Northern Ireland

While a DRO is in place, your creditors cannot take legal action against you. This can be a particularly good option if you are unemployed with very little disposable income. You can read more about which debts can be included in a DRO.

Bear in mind that if you find work during the 12-month period and your disposable income rises above £75 per month, you may need to look at an alternative solution.

Bankruptcy

Bankruptcy is a legal process that can clear most of your debts, but it does come with significant consequences. Your valuable assets (not including everyday essentials like clothing and furniture, or tools needed for work) may be sold to repay creditors.

You can apply for bankruptcy regardless of how much you owe. The application fee is £680, paid to the Insolvency Service.

Once declared bankrupt:

Creditors can no longer pursue you for the debts included
Your bankruptcy will appear on the Individual Insolvency Register and in The Gazette
It will stay on your credit file for six years
You will need to follow certain restrictions, usually for 12 months

If you are on benefits with no other income, you will not normally be asked to make monthly contributions. However, if you find employment during the bankruptcy period, contributions may be required. For more detail, read our guide on things to know before declaring bankruptcy.

Debt Management Plan (DMP)

A DMP is an informal arrangement where a third-party provider negotiates reduced monthly payments with your creditors on your behalf. You will still repay the full amount owed, but at a pace you can actually afford.

The key advantages of a DMP include:

Payments are based on what you can realistically afford
The plan is flexible and can be adjusted if your circumstances change
It covers unsecured debts such as credit cards, personal loans and overdrafts

A DMP is not a legally binding agreement, which means creditors are not obliged to accept it. That said, most creditors will cooperate with a reasonable payment proposal. The plan ends once all debts are cleared in full.

Individual Voluntary Arrangement (IVA)

An IVA is a legally binding agreement set up through a licensed Insolvency Practitioner (IP). Your IP will assess your income and essential outgoings, then propose a monthly payment amount to your creditors.

If your creditors accept the proposal, you make the agreed payments for a set period, typically five to six years. At the end, any remaining qualifying debt is written off.

For someone who is currently unemployed, an IVA may still be an option depending on your overall financial picture. If you find work during the arrangement and your income increases, your IP will reassess your payments accordingly. You can check whether you qualify for an IVA here.

How Debt Can Affect Your Mental Health

Being unemployed and in debt at the same time takes a serious toll on your wellbeing. If you are feeling overwhelmed, you are not alone, and there is support available. Our article on how debt affects your mental health covers this in more detail, along with where to get help.

Get Free Debt Advice Today

If you are unemployed and struggling with debt, the most important thing you can do is get advice as early as possible. The longer you leave it, the harder it becomes to resolve.

Use our solution finder to see which debt solution might be right for your situation, or get in touch with Swift Debt Help directly. One of the team will talk through your options with no obligation.

Request a Debt Assessment

Disclaimer: For guidance only. Financial information entered must be accurate and would require verification. Other factors will influence your most suitable debt solution.

Top 5 Bankruptcy Myths

Written by Alex Swindells on March 17, 2026. Posted in Bankruptcy, Debt help.

Updated for 2026

If you have been struggling with debt and looking for a way out, bankruptcy might have crossed your mind. But there is a lot of misinformation out there, and it can be hard to separate fact from fiction. In this guide, we break down five of the most common bankruptcy myths so you can make a more informed decision about your finances.

What is bankruptcy?

Bankruptcy is a legal process that can give you a fresh start if you are unable to repay your debts. You can apply for your own bankruptcy regardless of how much you owe. If a creditor wants to make you bankrupt, your debt must exceed £5,000.

Applying for bankruptcy costs £680. Once you are declared bankrupt, an official receiver or insolvency practitioner will look at your finances. Some of your assets may be sold and the money shared between your creditors.

After 12 months, your bankruptcy will usually be discharged, meaning you are released from most of the debts included in it, provided you have met the conditions set out by the official receiver.

If you are weighing up your options, our guide on IVA vs bankruptcy can help you compare the two.

Myth 1: everyone will find out I went bankrupt

When you are made bankrupt, it does become public information. Your details will appear on two government registers: the Gazette and the Individual Insolvency Register.

That said, unless your case is high profile, it is very unlikely that your bankruptcy will be reported in local newspapers or online media. Someone would need to actively search for your name on these registers to find out, and most people simply do not do that.

Your bankruptcy entry is also removed from the Individual Insolvency Register once you are discharged, which is typically after 12 months.

Myth 2: you will definitely lose your job

This is one of the biggest concerns people have, and understandably so. The good news is that for the vast majority of jobs, bankruptcy will not affect your employment.

There are some exceptions. If you work in financial services, law enforcement, or certain regulated professions, your role could be affected. You might not lose your job outright, but your duties could change. It is worth reading through your employment contract carefully to understand any restrictions.

In most cases, you are not legally required to tell your employer. If you are unsure, speak to your employer or seek independent advice. If your employer does take action against you, make sure it is lawful. You may be able to challenge any unfair dismissal.

For more on what to expect before filing, take a look at our guide to 5 things to know before declaring bankruptcy.

Myth 3: you will lose everything you own

This is probably the most common myth of all. Going bankrupt does not mean you will lose every possession.

Certain items are protected. You are allowed to keep:

Household essentials like furniture, bedding, and kitchen appliances
Clothing and personal items for you and your family
Tools of the trade, which are items you need for work, such as a vehicle, books, or equipment

Your home could be at risk if you own property, but even then there are protections in place. The official receiver will consider your circumstances, and in some cases your interest in the property may be dealt with after the bankruptcy period ends.

If your main concern is protecting your assets, it is worth comparing your options. A different approach to managing your debt might suit your situation better.

Myth 4: you will never be able to get credit again

Bankruptcy does have a significant impact on your credit file, but it is not permanent. Your bankruptcy will stay on your credit report for six years from the date of the order. During that time, you may find it harder to access credit, and some lenders will decline your applications.

However, there are steps you can take to rebuild your credit score over time:

Make sure you are on the electoral register
Pay all bills and commitments on time
Consider a credit builder card and use it responsibly
Check your credit report regularly for errors

Many people are surprised at how quickly their score can improve once the bankruptcy is discharged. For more practical tips, read our guide on common causes of a decreased credit score and how to avoid them.

Myth 5: bankruptcy wipes out every type of debt

Most unsecured debts are included in bankruptcy and will be written off when you are discharged. These include things like credit cards, personal loans, council tax arrears, and utility bill debts.

But not all debts are covered. The following types of debt will survive your bankruptcy, and you will still be responsible for paying them:

Student loans
Court fines
Child maintenance and family court orders
Debts obtained through fraud
Personal injury compensation
Any debts you take on after the bankruptcy order is made

If you are unsure which of your debts could be included, our guide to which debts can be included in debt solutions is a good starting point.

Is bankruptcy the right option for you?

Bankruptcy is a serious step, but for some people it is the best route to becoming debt free. It is not the only option, though. Depending on your circumstances, an IVA, a Debt Relief Order, or a debt management plan might be more suitable.

The most important thing is to get proper advice before making any decision. Swift Debt Help can talk you through your options and help you find the right path forward.

Request a Debt Assessment

What To Do If You Can’t Afford Your Payday Loan

Written by Alex Swindells on March 17, 2026. Posted in Bankruptcy, Debt help, Uncategorized.

Updated for 2026

A payday loan is a short-term borrowing option, usually for a small amount, designed to tide you over until your next payday. Because payday lenders often accept applicants with poor credit histories, the interest rates tend to be significantly higher than other forms of borrowing. If you can’t afford your payday loan repayments, the debt can quickly spiral due to these high interest charges.

Before approving your application, the lender should carry out affordability checks, looking at your income and outgoings. However, they are not in a position to advise you on whether a payday loan is the right option for your circumstances. That is where independent debt advice comes in.

Steps to Take If You Can’t Afford Your Payday Loan

If you have already borrowed from a payday lender and are struggling to keep up with repayments, here are some practical steps to consider:

Contact your lender as soon as possible. Explain your situation honestly. Under FCA regulations, your lender is required to treat you fairly and point you towards free, independent debt advice. They may agree to freeze interest temporarily or accept reduced payments while you get back on your feet.

Consider cancelling your continuous payment authority (CPA). If you are certain you cannot make a payment, you have the right to cancel your CPA or direct debit. Speak to your lender first to understand any implications, then contact your bank to revoke the authority. Since 2014, the FCA has limited lenders to two failed CPA attempts, giving you more control over your account.

Keep a written record of everything. Save emails, note down phone conversations, and keep copies of any letters. A clear paper trail protects you if there is ever a dispute about what was agreed.

Do not roll over your loan. If your lender offers to extend or roll over your payday loan to the following month, think carefully before accepting. Rolling over adds extra fees and interest, making the total amount you owe even larger. The FCA has capped the total cost of a payday loan at 100% of the original amount borrowed, but rolling over still increases your debt unnecessarily.

Falling behind on a payday loan can also affect your credit score, so it is worth acting quickly to limit the damage.

Debt Solutions for Payday Loan Debt

If your financial difficulties are more than a short-term problem, there are formal and informal debt solutions available in England, Wales and Northern Ireland. Each one works differently, so it is important to understand how they could apply to your situation. The information below is for general guidance only and should not be treated as financial advice.

Individual Voluntary Arrangement (IVA)

An IVA is a legally binding agreement between you and your creditors, arranged through a licensed Insolvency Practitioner (IP). It allows you to repay a proportion of your debts over a set period, typically five to six years, based on what you can realistically afford.

Your IP will review your income and essential outgoings to work out a monthly payment that leaves you enough for rent or mortgage, household bills, food and other necessities. If your creditors accept the proposal, you make one affordable monthly payment for the duration of the arrangement. At the end, any remaining qualifying debt is written off.

Payday loans are classed as unsecured debt, so they can generally be included in an IVA alongside other debts such as credit cards, store cards and personal loans.

Debt Relief Order (DRO)

A Debt Relief Order may be suitable if you have relatively low debts and limited assets. A DRO lasts for twelve months, during which your creditors cannot chase you for payment or take legal action against you. If your financial situation has not improved by the end of that period, the debts covered by the order are written off entirely.

To qualify for a DRO in 2026, you must meet several conditions. Your total qualifying debts must not exceed £50,000. Your surplus monthly income, after essential spending, must be no more than £75. You must not own a vehicle worth more than £2,000 or have savings and assets above £2,000. You also need to have lived or carried on business in England, Wales or Northern Ireland. The application fee is £90, paid upfront.

Debt Management Plan (DMP)

A Debt Management Plan is an informal arrangement where a third-party provider negotiates with your creditors on your behalf. You make a single monthly payment to the DMP provider, who then distributes it among your creditors.

Because a DMP is informal rather than legally binding, it offers flexibility: you can adjust payments if your circumstances change. However, your creditors are not obliged to stick with the arrangement and could still take further action if they choose to. A DMP is particularly suited to non-priority debts like credit cards, store cards and unsecured loans, including payday loans.

If you are worried about how debt is affecting your wellbeing, you are not alone. Many people find that financial pressure takes a toll on their mental health, and seeking support early can make a real difference.

Bankruptcy

If other options are not suitable, bankruptcy provides a way to clear your debts and make a fresh start. You can apply online through the Insolvency Service, and the application fee is £680.

Once you are declared bankrupt, creditors can no longer pursue you for the debts included. However, any non-essential assets you own may be sold to repay what you owe. Bankruptcy typically lasts twelve months, after which you are discharged from most of your debts. It will remain on your credit file for six years from the date of the order.

Bankruptcy carries certain restrictions during the twelve-month period, and it becomes a matter of public record. For these reasons, it is generally considered a last resort after exploring the alternatives. You can read more in our guide to things to know before declaring bankruptcy.

Get Free Payday Loan Debt Help

If you can’t afford your payday loan and want to explore your options, get in touch for a free, no-obligation assessment. We can help you understand which debt solution might be right for your circumstances.

The information on this page is for general guidance only and does not constitute financial advice. Everyone’s situation is different, so we recommend speaking to a qualified professional before making any decisions about your finances.