Author: Alex Swindells

Reasons an IVA is worth it: abstract doorways from dark to light representing a path to financial freedom

10 Reasons an IVA Is Worth It in 2026

Written by Alex Swindells on March 20, 2026. Posted in Debt help, IVA.

10 Reasons an IVA Is Worth It in 2026

Updated for 2026

If you are struggling with multiple debts and wondering whether an IVA is worth it, you are not alone. Thousands of people across the UK use Individual Voluntary Arrangements every year to regain control of their finances. An IVA lets you make one affordable monthly payment towards your unsecured debts, with legal protection from creditors, and any remaining balance written off at the end.

There are several debt solutions available in the UK, so choosing the right one matters. Below, we look at ten practical reasons why an IVA could be the right option for your circumstances in 2026.

What Is an IVA?

An Individual Voluntary Arrangement (IVA) is a legally binding agreement between you and your creditors. It is set up and supervised by a licensed Insolvency Practitioner (IP) under the Insolvency Act 1986. You agree to pay back what you can realistically afford each month, and in return your creditors agree to freeze interest and charges.

An IVA typically lasts five to six years. Once you have completed all your payments, any remaining unsecured debt included in the arrangement is written off. You generally need to owe at least £6,000 across two or more creditors to qualify, although each case is assessed individually.

The Insolvency Service reported that over 76,000 IVAs were registered in England and Wales during 2024, making them one of the most popular formal debt solutions in the country. If you want to understand how long the process takes, read our guide on how long an IVA lasts.

1. You Only Repay What You Can Afford

One of the biggest reasons an IVA is worth it is that your monthly payment is based on what you can genuinely afford after covering essentials like rent, food, utilities and childcare. Your IP carries out an income and expenditure assessment to work out a fair figure.

This means you are never stretched beyond your means. Typical monthly IVA payments start from around £90, though the exact amount depends on your individual circumstances. The payment replaces all the separate minimum payments you were making to different creditors.

2. It Can Overturn a CCJ or Prevent Bankruptcy

A County Court Judgement (CCJ) is a court order that says you owe money to a creditor. If you already have a CCJ against you, entering an IVA means the debt covered by that judgement is included in your arrangement. Your creditors cannot enforce the CCJ or petition for your bankruptcy while your IVA is active.

This gives you breathing space. Instead of facing escalating legal action, you deal with one structured repayment plan overseen by your IP.

3. Creditors Must Stop Contacting You

Constant phone calls, letters and emails from creditors can be exhausting. Once your IVA is approved, your creditors are legally required to stop chasing you for payment. All communication about your debts goes through your Insolvency Practitioner instead.

Your creditors still have to send you an annual statement, but the day-to-day pressure stops. For many people, this alone makes the process worthwhile. Organisations like StepChange highlight the mental health benefits of having a formal arrangement in place.

4. Remaining Debt Is Written Off After Completion

This is often the most compelling reason people choose an IVA. Once you have made all your agreed payments over the five or six year term, any outstanding balance on the debts included in your IVA is legally written off. It does not matter whether you have repaid 30% or 70% of the original amount: the rest is cancelled.

Compare that to simply making minimum payments on credit cards, where it could take decades to clear the balance due to compounding interest.

5. Your Career and Job Are Protected

Bankruptcy can restrict the type of work you do. For example, you cannot act as a company director while you are bankrupt, and certain professions in finance, law and the public sector carry restrictions too.

An IVA does not carry the same limitations. In most cases, your employer does not even need to know you have one. That said, it is always sensible to check your employment contract for any clauses relating to insolvency. If you are unsure, speak to your IP before entering the arrangement.

6. Your Home and Assets Are Protected

Unlike bankruptcy, where a trustee can sell your assets to pay creditors, an IVA protects your property. Creditors included in your IVA cannot repossess your home or car to recover what you owe.

If you are a homeowner, your IVA proposal may include a clause about releasing equity in the final year, but this is handled carefully and alternatives exist if remortgaging is not possible. Your essential belongings and day-to-day transport are not at risk.

7. Interest and Charges Are Frozen

Interest is one of the main reasons debt spirals out of control. When you enter an IVA, your creditors freeze interest and charges from the date the arrangement is approved. The debt is fixed at that point, so you know exactly what you are dealing with.

Without an IVA, making only minimum payments on high-interest credit cards or store cards means a large portion of your money goes towards interest rather than reducing what you actually owe.

8. Legal Action Is Prevented

If you are worried about bailiffs turning up at your door, an IVA offers real protection. Once your IVA is in place and you stick to its terms, your creditors cannot take legal action against you for the debts included in the arrangement. This includes stopping bailiff enforcement on those debts.

For more on dealing with enforcement action, see our guide on what to do if bailiffs are at your door.

9. One Simple Monthly Payment

Juggling payments to multiple creditors each month is stressful and easy to get wrong. With an IVA, you make a single payment each month to your IP, who then distributes the money to your creditors on your behalf.

This simplicity makes budgeting far easier. You know exactly how much leaves your account each month, and you do not have to worry about missing a payment to one creditor while paying another.

10. A Wide Range of Debts Can Be Included

An IVA can cover most types of unsecured debt, including credit cards, personal loans, overdrafts, catalogue debts, payday loans and council tax arrears. This means you can wrap several different obligations into one manageable arrangement.

Some debts cannot be included, such as mortgages, secured loans, student loans and court fines. However, by consolidating the unsecured debts you can, your overall financial pressure reduces significantly.

For practical advice on managing your finances while in debt, take a look at our tips for dealing with debt in 2026.

Is an IVA Right for You in 2026?

An IVA is not suitable for everyone. It will appear on your credit file for six years from the date it starts, and you will need to stick to strict spending guidelines during the arrangement. Taking on new credit without your IP’s permission is not allowed.

However, if you owe £6,000 or more to two or more creditors and cannot realistically repay your debts in full, an IVA gives you a structured, legally protected route to becoming debt free.

Free, impartial guidance is available from MoneyHelper and GOV.UK. You can also check your eligibility with Swift Debt Help to see whether an IVA could work for you.

This article is for general information only and does not constitute financial advice. If you are unsure about the best debt solution for your circumstances, seek guidance from a qualified professional or a free debt advice service.

Take the First Step Towards Financial Freedom

If your debts have become unmanageable, we can help you explore whether an IVA is the right solution. Get in touch today for a free, no-obligation assessment.

Energy saving tips to avoid debt, overhead view of UK energy bills and budget notes on a kitchen table

Energy Saving Tips: Helping You Avoid Debt in 2026

Written by Alex Swindells on March 20, 2026. Posted in Debt help, Uncategorized.

Updated for 2026

Energy Saving Tips: Helping You Avoid Debt in 2026

With energy costs continuing to squeeze household budgets across the UK, practical energy saving tips to avoid debt have never been more relevant. As of Q1 2026, Ofgem set the energy price cap at £1,758 per year for a typical dual-fuel household paying by Direct Debit, falling to £1,641 from April 2026. While this is a welcome reduction, many families are still paying far more than they were just a few years ago, and the risk of falling behind on bills remains real.

If your energy costs are creeping up and you are worried about falling into debt, this guide offers straightforward, actionable ways to cut your usage and protect your finances.

Understanding the Energy Price Cap in 2026

The energy price cap is the maximum amount suppliers can charge per unit of gas and electricity. It is reviewed quarterly by Ofgem, the energy regulator. For Q2 2026 (April to June), the cap sits at £1,641 per year for a typical household, down 6.6% from the previous quarter.

That said, actual bills depend on how much energy you use. If your consumption is above average, you could pay significantly more than the cap figure. Understanding this is the first step towards taking control of your energy costs and avoiding the kind of debt that can spiral quickly.

For the latest figures, visit Ofgem's price cap page.

Energy Saving Tips to Avoid Debt: Practical Steps You Can Take Today

You do not need to spend money to start saving it. These are low-cost or no-cost changes that can make an immediate difference to your energy bills.

Upgrade your curtains

Thicker curtains act as an extra layer of insulation against cold windows. Thermal-lined curtains are widely available at budget retailers and can noticeably reduce heat loss, particularly in older properties with single glazing. During the day, open curtains on south-facing windows to let natural warmth in, then close them as soon as it gets dark.

Block draughts around doors and chimneys

An open chimney is one of the biggest sources of heat loss in a home. A chimney balloon or draught excluder costs under £10 and can save a surprising amount. Fit draught strips around external doors and check for gaps around windows, letterboxes, and keyholes. The Energy Saving Trust estimates that draught-proofing can save around £60 per year.

Only heat the rooms you use

If you have rooms that sit empty most of the day, turn off the radiators in those rooms and keep the doors closed. This concentrates warmth where you actually spend time and reduces the volume of space your boiler needs to heat. It is a simple habit that can cut your gas usage noticeably.

Layer up before turning the thermostat up

Wearing multiple thin layers traps warmth between each layer, acting as effective insulation. Focus on extremities: thick socks, slippers, and a warm hat indoors can make a real difference. Keeping a blanket on the sofa is cheaper than turning the heating up by even one degree, which the Energy Saving Trust says adds around £145 to your annual bill.

Longer-Term Investments That Reduce Energy Bills

If you own your home and have some flexibility, these upgrades pay for themselves over time.

Double or triple glazing

Replacing single-glazed windows with double glazing can save between £100 and £235 per year depending on the property, according to the Energy Saving Trust. Triple glazing goes further, reducing heat loss even more. The upfront cost is significant, but grants may be available through the Great British Insulation Scheme or your local authority.

Solar panels

Solar panel costs have dropped considerably, and with the Smart Export Guarantee, you can earn money by selling surplus electricity back to the grid. A typical 4kW system could save between £300 and £500 per year. It is a bigger investment, but one that reduces your dependence on the grid and shields you from future price rises.

Smart thermostats and heating controls

A smart thermostat lets you control your heating remotely and schedule it precisely. Many models learn your routine and adjust automatically. Installing one can save around £75 to £100 per year by eliminating waste heating when no one is home.

What to Do If Energy Debt Is Already Building

If you are already behind on energy bills, you are not alone. Millions of UK households have experienced energy debt over recent years. The important thing is to act early rather than ignore the problem.

Contact your energy supplier as soon as possible. They are required to offer you a repayment plan and cannot disconnect you without following a strict process. You may also be eligible for the Warm Home Discount, worth £150 off your electricity bill, or hardship funds that some suppliers offer.

Free, impartial advice is available from MoneyHelper (backed by the Money and Pensions Service). If your debts go beyond energy bills, a formal Individual Voluntary Arrangement (IVA) could help you consolidate what you owe into one affordable monthly payment.

Government Support Available in 2026

Several government-backed schemes exist to help with energy costs:

The Warm Home Discount Scheme provides a £150 rebate on electricity bills for eligible low-income households
Winter Fuel Payments give between £100 and £300 to those who qualify (eligibility changed from winter 2024/25 to target those receiving Pension Credit)
Cold Weather Payments provide £25 for each seven-day period of very cold weather if you receive certain benefits
The Great British Insulation Scheme helps eligible households get free or subsidised insulation upgrades

Check GOV.UK's help with energy bills page for the latest on what you may be entitled to.

Building Better Habits to Stay Out of Debt

Saving energy is not just about one winter. Building consistent habits protects your finances year-round. Keep an eye on your meter readings rather than relying on estimated bills, which can lead to nasty surprises. Switch to LED bulbs throughout your home, as they use up to 80% less energy than traditional bulbs.

If you are struggling with dealing with debt more broadly, there are steps you can take to get back on track. Prioritise essential bills (energy, rent, council tax) over non-priority debts, and consider speaking to a debt adviser if things feel overwhelming.

For those worried about cancelling direct debits to energy suppliers, be careful: doing so can result in losing your payment plan and facing larger bills later.

Disclaimer: This article provides general information only and does not constitute financial advice. If you are struggling with debt, we recommend seeking guidance from a qualified debt adviser or contacting a free service such as MoneyHelper or StepChange.

Report a loan shark - gavel representing UK legal action against illegal moneylenders

How to Report a Loan Shark

Written by Alex Swindells on March 20, 2026. Posted in Debt help.

Updated for 2026

If you or someone you know has been targeted by an illegal moneylender, knowing how to report a loan shark could protect you and others from further harm. Loan sharks operate outside the law, charging extortionate interest rates and using intimidation to collect payments. In 2026, with the cost of living still squeezing household budgets across the UK, more people than ever are at risk of falling into the hands of these unlicensed lenders.

This guide covers everything you need to know: what a loan shark actually is, how to spot one, how to report them, and what support is available if you have already borrowed from one.

What Is a Loan Shark?

A loan shark is someone who lends money without authorisation from the Financial Conduct Authority (FCA). Under the Financial Services and Markets Act 2000, lending money without proper FCA authorisation is a criminal offence. Loan sharks are breaking the law, and any agreement you have with one is legally unenforceable.

They typically operate informally, often through word of mouth in local communities. There is rarely any proper paperwork, no written terms and conditions, and no transparency about interest rates. What starts as a small, seemingly helpful loan can quickly spiral into thousands of pounds owed.

According to the England Illegal Money Lending Team (IMLT), loan sharks have been known to:

Charge interest rates exceeding 1,000% APR
Add fees and charges without warning
Take bank cards, passports, or other personal items as security
Use threats, violence, or intimidation to collect debts
Force borrowers to commit crimes to repay what they owe

How to Spot a Loan Shark

Loan sharks do not always look like criminals. They might be a neighbour, a colleague, or someone at the school gates who offers to help when money is tight. Here are the warning signs:

They have no FCA authorisation. Every legitimate lender in the UK must be registered on the FCA Financial Services Register. If they are not listed, they are operating illegally.

They offer no proper paperwork. A legitimate lender will always provide a written credit agreement with clear terms, interest rates, and repayment schedules. Loan sharks avoid leaving a paper trail.

They increase the debt without explanation. If the amount you owe keeps growing despite regular payments, or new charges appear from nowhere, you are likely dealing with an illegal lender.

They use intimidation. Any lender who threatens you, pressures you, takes your personal belongings as security, or tries to control your finances is acting unlawfully.

How to Report a Loan Shark in the UK

If you believe someone is operating as an illegal moneylender, you should report them. Reporting a loan shark can be done anonymously, and you will not get into trouble for having borrowed from one.

England

Contact the Illegal Money Lending Team (Stop Loan Sharks):

Call: 0300 555 2222 (24-hour helpline)
Text: "loan shark" followed by your message to 60003
Email: reportaloanshark@stoploansharks.gov.uk
Online: via the Stop Loan Sharks website

Wales

Wales is also covered by the England Illegal Money Lending Team. Use the same contact details above.

Scotland

Contact Police Scotland on 101 or report through Trading Standards Scotland.

Northern Ireland

Contact the Department for the Economy’s Trading Standards Service on 0300 123 6262.

You can also report a loan shark through GOV.UK, which will direct you to the correct team based on your location.

What Happens After You Report a Loan Shark?

Once a report is made, the Illegal Money Lending Team will investigate. They have the power to gather evidence, make arrests, and prosecute illegal lenders. Since the IMLT was established, it has secured over 400 prosecutions across England and Wales, with sentences including significant prison terms.

Your identity will be kept confidential. The IMLT also provides support to victims, including access to counselling, financial advice, and help with legitimate borrowing alternatives.

If you have already borrowed from a loan shark, you are not legally obligated to repay them. Because they are operating without FCA authorisation, the credit agreement is unenforceable. Courts cannot force you to repay an illegal debt.

Am I in Trouble If I Borrowed from a Loan Shark?

No. Borrowing from a loan shark is not a crime. The criminal is the person lending money without a licence. Many victims of loan sharks are vulnerable people who were in desperate financial situations. The authorities understand this, and reporting a loan shark will not result in any action against you.

The IMLT and organisations like MoneyHelper and StepChange can help you find legitimate ways to manage your finances going forward.

Alternatives to Borrowing from a Loan Shark

If you are struggling financially and considering borrowing, there are safer options available:

Credit unions offer affordable loans to members, often with much lower interest rates than high street lenders. You can find your local credit union through the Association of British Credit Unions.

If you are already in debt and unable to keep up with repayments, formal debt solutions may help. An Individual Voluntary Arrangement (IVA) allows you to make affordable monthly payments towards your debts over a fixed period, with the remaining balance written off at the end.

A Debt Relief Order (DRO) may be suitable if you owe less than £50,000, have minimal assets, and a low disposable income. After 12 months, qualifying debts are written off entirely.

For a broader look at your options, read our guide to dealing with debt.

Get Free Debt Advice Today

If you are worried about money, do not suffer in silence. Free, confidential debt advice is available from several organisations including StepChange, Citizens Advice, and National Debtline.

Swift Debt Help cannot assist with loan shark debt directly, as the lender is operating outside the law. However, if you have other debts that are causing you stress, we may be able to help you find the right solution.

Disclaimer: This article provides general information only and does not constitute financial advice. Every person’s financial situation is different, and you should seek professional advice before making decisions about your debts.

Debts included in a debt relief order - person signing financial documents

8 Debts That Can Be Included in a Debt Relief Order

Written by Alex Swindells on March 19, 2026. Posted in Debt help.

Updated for 2026

If you are struggling with multiple debts, a Debt Relief Order (DRO) could provide a way to get back on track. A DRO is designed for people with relatively low levels of debt who have little disposable income and few assets. But which debts actually qualify? Here are eight types of debt that can typically be included in a Debt Relief Order.

What Is a Debt Relief Order?

A Debt Relief Order is a form of insolvency available in England, Wales and Northern Ireland. It offers an alternative to bankruptcy for people who cannot realistically pay off what they owe. Once a DRO is in place, your creditors cannot chase you for the debts included in it, and after 12 months the debts are usually written off entirely.

To qualify for a DRO in 2026, you need to meet several criteria. Your total qualifying debt must be below £50,000, you must have £75 or less per month in spare income after essential living costs, and your assets must be worth £2,000 or less (excluding a vehicle worth up to £4,000). You must also have lived or worked in England or Wales within the last three years.

Your name will appear on the Individual Insolvency Register for the duration of the DRO plus three months. Not every debt qualifies for inclusion: student loans, criminal fines and some other debts are excluded. The debts that can be included are known as qualifying debts.

How Long Does a Debt Relief Order Last?

Most DROs last for 12 months. During that period, your financial situation is monitored by the Official Receiver, an officer of the Insolvency Service. If your circumstances remain broadly the same and you continue to meet the criteria, your qualifying debts are written off at the end of the 12 months.

The Official Receiver can extend a DRO or end it early depending on any changes to your situation. For example, if you come into money or your income increases significantly, the DRO may be revoked.

8 Debts That Can Be Included in a Debt Relief Order

1. Council Tax and Utility Arrears

Household arrears are among the most common debts included in a DRO. This covers outstanding council tax, gas, electricity, water and telephone bills. Council tax arrears are particularly important to address, as local authorities have strong enforcement powers, including the use of bailiffs and, in extreme cases, committal proceedings.

A DRO is one route for clearing council tax debt. Bear in mind that only arrears up to the date of the DRO are covered. You will still need to keep up with your current council tax payments going forward.

2. Credit Card Debt

Credit card debt is one of the most widespread forms of unsecured borrowing in the UK. According to MoneyHelper, many households carry significant credit card balances that can quickly grow due to compound interest. If you are only making minimum payments, it can take years to clear the balance.

Credit card debt is a qualifying debt for a DRO. Once included, your creditors cannot pursue you for the balance during the moratorium period, and the debt is written off at the end.

3. Payday Loans

Payday loans are short-term, high-interest loans typically borrowed between paydays. They usually range from £50 to £1,000 and are designed to be repaid within weeks. The interest rates on these loans can be extremely high, and many borrowers find themselves in a cycle of re-borrowing.

If you are trapped in payday loan debt, a DRO can provide a clean break. Payday loan debts are qualifying debts and can be written off at the end of the 12-month DRO period.

4. Overdrafts

Overdraft debt can creep up without you realising, particularly if you treat your overdraft limit as part of your available balance. Banks can charge daily or monthly fees for arranged overdrafts, and unauthorised overdrafts can attract even higher charges.

One thing to be aware of: if your current account is with the same bank you owe the overdraft to, they may use a “right of set-off” to take money from your account to recover what you owe. A DRO can include overdraft debt and have it written off after 12 months.

5. Benefit Overpayments

Benefit overpayments happen when you receive more in benefits than you were entitled to. This can occur for various reasons, such as a change in circumstances that was not reported promptly or an administrative error by the Department for Work and Pensions.

Benefit overpayments can be included in a DRO, provided they were not caused by fraud. Once the overpayment is listed in your DRO, the DWP cannot recover the amount during the moratorium, and it will be written off at the end.

6. Hire Purchase and Conditional Sale Agreements

With hire purchase and conditional sale agreements, you do not legally own the item until the final payment is made. If you have paid less than a third of the total amount and miss payments, the creditor may be entitled to repossess the item if you have a DRO.

In some situations, if you are up to date with your hire purchase payments, you may be able to exclude the agreement from your DRO and keep the item. It is important to discuss this with your Official Receiver. You must also inform any hire purchase or conditional sale creditor that you have a DRO.

7. Buy Now, Pay Later and Finance Agreements

Buy Now, Pay Later (BNPL) purchases and other consumer finance agreements, such as those used to buy household items like washing machines or sofas, are qualifying debts for a DRO. These agreements may carry interest after an initial interest-free period, and missed payments can lead to additional charges.

If the finance is secured against the item itself, the creditor may have the right to repossess it. Check the terms of your agreement carefully. BNPL lending is expected to come under full FCA regulation in the near future, which may change how these debts are treated in insolvency.

8. Loans From Family or Friends

Informal loans from family members or friends can also be included in a Debt Relief Order. These are treated the same as any other qualifying debt, which means the person who lent you money will not be repaid.

This can understandably cause tension in personal relationships. If you have borrowed from someone close to you, it is worth having an honest conversation before applying for a DRO so they understand the implications.

Debts That Cannot Be Included in a DRO

Not every debt qualifies. Student loans, magistrates court fines, child maintenance arrears and debts arising from fraud are all excluded from DROs. Social fund loans and some types of compensation orders may also be excluded. If you are unsure whether a particular debt qualifies, seek advice from an authorised debt adviser.

Is a Debt Relief Order Right for You?

A DRO is just one of several debt solutions available. Others include Individual Voluntary Arrangements (IVAs), Debt Management Plans, and bankruptcy. The right option depends on your total debt, income, assets and personal circumstances.

At Swift Debt Help, we can assess your financial situation and help you understand which solution might work for you. This content is for general information only and does not constitute financial advice. Always speak to a qualified professional before making decisions about your debts.

UK energy bills, calculator and phone on a desk - cancelling energy direct debit

Thinking About Cancelling Your Direct Debit to Your Energy Supplier?

Written by Alex Swindells on March 19, 2026. Posted in Bankruptcy, Debt help.

Updated for 2026

Energy costs remain a real concern for UK households in 2026. Although prices have dropped significantly from the peak of late 2022, many people still find their monthly bills a struggle, particularly those on lower incomes or living alone. If you have thought about cancelling your energy direct debit, you are not the only one, but doing so could create far bigger problems than the bills themselves.

From April 2026, the Ofgem energy price cap sits at £1,641 per year for a typical dual-fuel household paying by direct debit. That is a notable drop from the £3,549 cap set in October 2022, yet for many families it still represents a large chunk of their monthly budget.

Before you take the step of cancelling your energy direct debit, it is worth understanding what could happen next and what alternatives are available to you.

What Happens If You Cancel Your Energy Direct Debit

Cancelling your direct debit might feel like a quick fix when money is tight, but it can trigger a chain of consequences that make your financial situation worse:

Your energy supplier can issue a County Court Judgement (CCJ) against you, forcing you to repay what you owe through a court order.
A supplier could apply for a warrant to enter your home and install a prepayment meter or, in extreme cases, disconnect your supply. While disconnection is rare, prepayment meter installations under warrant have increased in recent years.
Your account may be passed to a debt collection agency, adding pressure and potentially extra fees on top of what you already owe.
You could lose any direct debit discount your supplier offers. Many providers charge more if you switch to quarterly billing or pay on receipt of a bill.
Unpaid energy debt will show on your credit file, dragging down your credit score and making it harder to borrow, rent, or even get a mobile phone contract in the future.

Why Paying by Direct Debit Is Usually Cheaper

Most energy suppliers offer their lowest tariffs to customers who pay by monthly direct debit. The discount might seem small on paper, but over a full year it can save you a meaningful amount.

Direct debit also spreads the cost evenly across 12 months. Instead of facing a large bill in winter when usage spikes, you pay a consistent amount that your supplier adjusts periodically based on actual consumption.

If you cancel without telling your supplier, you could lose that tariff permanently and be moved onto a more expensive payment method. Getting back onto a direct debit arrangement after missed payments is not always straightforward either.

Another practical benefit: if you overpay during the summer months (when you use less energy), your supplier can refund the credit to your bank account or carry it forward to offset winter bills.

What to Do If You Cannot Afford Your Energy Bills

If you are struggling to keep up with your energy payments, the most important step is to contact your supplier as soon as possible. Under Ofgem rules, suppliers are required to offer support to customers in financial difficulty. This could include:

Reducing your monthly direct debit to a more manageable amount
Setting up a repayment plan for any arrears
Applying hardship fund grants (many suppliers run these, particularly for vulnerable customers)
Offering a prepayment meter so you can pay as you go and avoid building up debt

You can also check whether you qualify for the Warm Home Discount, which provides a £150 rebate on electricity bills for eligible low-income households. The Winter Fuel Payment and Cold Weather Payment schemes may also help if you meet the criteria.

If your current deal is not competitive, switching supplier or tariff could cut your costs. Just be aware that if you owe money to your current supplier and the bill is more than 28 days overdue, you may not be able to switch until the debt is cleared.

How Energy Debt Affects Your Wider Finances

Energy debt does not exist in isolation. Once bills go unpaid, the knock-on effects can spread across your entire financial picture. A bad debt marker on your credit report stays there for six years, which can affect mortgage applications, loan approvals, and even rental agreements.

If you are already dealing with rising utility bills alongside other debts, it is easy to fall into a pattern of robbing Peter to pay Paul. This is where getting proper advice early can make a genuine difference.

For those experiencing fuel poverty, free advice is available from organisations like Citizens Advice and StepChange, both of which can help you work out a plan to manage your debts without ignoring essential bills.

Debt Solutions That Could Help

If your energy bills are part of a larger debt problem and you owe £6,000 or more across multiple creditors, a formal debt solution might be appropriate. One option is an Individual Voluntary Arrangement (IVA), which is a legally binding agreement set up through a licensed insolvency practitioner.

An IVA consolidates your eligible debts into a single affordable monthly payment, typically lasting five or six years. Your insolvency practitioner will assess your income and essential outgoings to make sure you can still cover necessities like rent, food, and utilities before agreeing a payment amount. At the end of the arrangement, any remaining qualifying debt is written off.

To find out more about how an IVA works and whether you might be eligible, read our step-by-step guide to applying for an IVA in 2026.

Energy debts, council tax arrears, credit cards, store cards, personal loans, and overdrafts can all potentially be included. You can see the full list in our guide to debts that can be included in an IVA.

Get Free Advice Today

If you are thinking about cancelling your energy direct debit because you simply cannot afford it, talk to us first. Swift Debt Help offers free, confidential advice to help you understand your options and find a way forward that does not put your credit rating or energy supply at risk.

benefits of using a credit card sensibly in the UK

4 Benefits of Using Your Credit Card Sensibly

Written by Alex Swindells on March 19, 2026. Posted in Credit Score, Debt help.

Updated for 2026

Credit cards are a fixture of everyday life in the UK. Millions of people use them for everything from the weekly food shop to booking holidays and replacing household appliances. But beyond convenience, there are genuine benefits of using your credit card sensibly that many people overlook.

When managed properly, a credit card can work in your favour, helping you build financial stability and access better deals down the line. Here are four key benefits worth knowing about.

1. Build your credit rating with responsible use

Your credit rating plays a major role in your financial life. Lenders use it to decide whether to approve you for borrowing, and at what interest rate. A higher score means better access to mortgages, car finance, and even mobile phone contracts on favourable terms.

Credit reference agencies such as Experian, Equifax, and TransUnion each use their own scoring systems, but the principle is the same. Your credit card account and payment history form a significant chunk of your credit report. By using your card regularly and paying it off on time each month, you demonstrate to lenders that you can manage credit responsibly.

According to MoneyHelper, keeping your credit utilisation low (ideally under 30% of your limit) and never missing a payment are two of the simplest ways to strengthen your score over time.

There are also other ways to improve your credit score, and together they can make a real difference when you need to borrow for something significant.

2. Section 75 protection on purchases

One of the most valuable, and least understood, benefits of using your credit card sensibly is the legal protection it offers under Section 75 of the Consumer Credit Act 1974.

When you pay for goods or services costing between £100 and £30,000 using your credit card, your card provider is jointly liable with the retailer. This means if the company goes bust, the item never arrives, or what you receive is significantly different from what was advertised, you can claim your money back from your credit card provider.

This protection is particularly useful for:

Booking flights and holidays
Purchasing electronics or appliances online
Buying furniture or items from smaller retailers
Any situation where there is a risk the seller might not deliver

You do not need to have paid the full amount on your credit card for Section 75 to apply. Even paying a deposit on your card can trigger the protection for the full value of the purchase. Debit cards do not offer this same level of cover.

3. Earn rewards and cashback

Many UK credit card providers offer reward schemes that give you something back for spending you would do anyway. The exact rewards vary by provider, but common options include:

Cashback on everyday purchases like groceries and fuel
Reward points that can be redeemed for vouchers, travel, or dining
Air miles for frequent travellers
Discounts or offers with partner retailers

If you pay off your balance in full each month, reward credit cards can genuinely save you money. The key is to treat your credit card as a payment method for things you were already going to buy, not as a reason to spend more.

Some cashback cards require you to log into your account and activate offers before you can earn rewards, so it is worth checking the terms when you sign up.

4. Increase your spending power for emergencies

Life does not always go to plan. Boilers break down, cars need unexpected repairs, and appliances give up at the worst possible time. When your savings cannot stretch to cover an urgent expense, a credit card provides a safety net.

By using your credit card responsibly over time, your provider may increase your credit limit, giving you more flexibility when you need it most. This does not mean spending beyond your means. It means having access to funds for genuine emergencies, with the ability to spread the cost over manageable repayments.

Of course, any credit borrowed must be repaid. If you only make minimum payments, interest charges can mount quickly. The StepChange website has useful guidance on managing credit card repayments and avoiding debt spirals.

What if credit card debt becomes a problem?

In 2026, UK household debt continues to be a concern. According to The Money Charity, average credit card debt per household remains above £2,000, and with the cost of living still putting pressure on budgets, many people are finding it harder to keep on top of repayments.

If your credit card debt is becoming unmanageable, it is important to act sooner rather than later. Ignoring the problem rarely makes it go away, and there are options available to help you regain control.

Swift Debt Help offers general information on dealing with unsecured debts including credit cards. Whether you need guidance on budgeting, understanding your options, or simply want to talk through your situation, support is available.

You might also find it helpful to read our guide on practical tips for dealing with debt in 2026 or learn about the differences between good and bad debt.

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.

Types of loans explained for UK borrowers

9 Types of Loans: Understanding How They Work in 2026

Written by Alex Swindells on March 19, 2026. Posted in Uncategorized.

Updated for 2026

Are you thinking about taking out a loan but unsure which type suits your situation? Before you start applying, it pays to understand the different types of loans available in the UK so you can make the right choice for your finances.

Loans come in many forms, each designed for different circumstances. Some help you buy a home, others cover short-term costs, and certain types of loans can even help you manage existing debt. This guide breaks down 9 common types of loans so you know exactly what you are looking at.

How Do Loans Work?

At its simplest, a loan is a fixed amount of money that a lender provides to you. You repay the full amount, usually with interest, over an agreed period. However, not every loan works the same way.

Some loans carry fixed interest rates, meaning your monthly payment stays the same throughout. Others have variable rates, so your repayments can go up or down. In some cases, you may need to offer a personal asset as security in case you cannot keep up with payments.

Loans generally fall into four broad categories:

Secured Loans

A secured loan requires you to put up an asset, typically your home or car, as security for the lender. If you fail to make repayments, the lender has the legal right to repossess that asset. Because the lender has this safety net, secured loans often come with lower interest rates compared to unsecured options.

Unsecured Loans

An unsecured loan does not require any collateral. The lender takes on more risk, which usually means higher interest rates. You will typically need a decent credit history to qualify for an unsecured loan.

Instalment Loans

With an instalment loan, you borrow a fixed sum and repay it in regular monthly payments over a set term. The repayment amount and schedule are agreed before the loan starts, making it easier to budget around.

Revolving Credit

Revolving credit gives you a pre-approved borrowing limit that you can draw from, repay, and draw from again. Credit cards and overdrafts are common examples. This type of credit is reviewed every 24 to 36 months, and you will usually need to make at least a minimum monthly payment.

The 9 Types of Loans Explained

1. Personal Loans

A personal loan is borrowing taken out by an individual rather than a business. You can use a personal loan for almost anything: home improvements, buying a vehicle, covering an unexpected bill, or consolidating multiple debts into one payment.

Most personal loans are unsecured, meaning no collateral is required. The interest rate you are offered will depend on your credit score and overall financial situation. Rates can be fixed or variable.

If you are looking to get a better deal on a personal loan, improving your credit score before you apply can make a real difference.

2. Hire Purchase

A Hire Purchase (HP) agreement lets you pay for a high-value item, most commonly a car, through fixed monthly instalments. You do not own the item until you make the final payment.

Because the lender retains ownership of the item as security, HP agreements can be available to people with lower credit scores. The total cost, interest rate, and monthly payment depend on the item price, your deposit, and your credit rating.

Be aware that the vehicle can be repossessed if you fall behind on payments, though the lender must follow the process set out in the Consumer Credit Act 1974.

3. Student Loans

Student loans help cover tuition fees and living costs during higher education. In the UK, these are primarily provided through the Student Loans Company (a government-backed scheme).

Repayment only starts once you earn above a certain threshold. For Plan 5 loans (courses starting from September 2023 onwards), the repayment threshold for 2026 is reviewed annually by the government. Interest is charged at the Retail Price Index (RPI) rate.

Student loan debt does not appear on your credit file in the same way as other debts, and any remaining balance is written off after 40 years for Plan 5 borrowers.

4. Mortgages

A mortgage is a secured loan used to buy a property. The property itself serves as collateral, meaning the lender can repossess your home if you fail to keep up with payments.

Mortgage interest rates depend on your credit history, the size of your deposit, and the type of deal you choose (fixed, variable, or tracker). Most mortgages run for 25 to 35 years, though shorter and longer terms are available.

Some homeowners choose to remortgage to clear existing debt, though this effectively converts unsecured debt into secured debt against your home, which carries its own risks.

5. Debt Consolidation Loans

A debt consolidation loan lets you combine multiple debts into a single loan with one monthly payment. This can simplify your finances and potentially reduce your overall interest rate.

You might use a consolidation loan to pay off credit cards, overdrafts, store cards, and personal loans all at once. The key benefit is having just one creditor and one payment date to manage each month.

However, it is important to check the total amount you will repay over the life of the loan. A lower monthly payment spread over a longer term can sometimes mean you pay more in total. Free guidance on managing debt is available from MoneyHelper.

6. Payday Loans

Payday loans are short-term, high-cost loans designed to tide you over until your next payday. They are typically for small amounts and must be repaid within a month.

Since January 2015, the Financial Conduct Authority (FCA) has capped the cost of payday loans in the UK. The total cost of a loan (including fees and interest) cannot exceed 100% of the amount borrowed. Daily interest is capped at 0.8%.

Despite these protections, payday loans remain one of the most expensive forms of borrowing. If you are struggling with payday loan debt, free help is available from organisations like StepChange.

7. Doorstep Loans

A doorstep loan (also called home credit) is a small, short-term loan where an agent visits your home to provide the cash and collect repayments. Many providers now also offer online applications and repayments.

You can typically borrow up to £1,000 with a doorstep loan. Interest rates are very high because these loans are designed for people who may not qualify for mainstream credit. The doorstep lending market has shrunk significantly in recent years, with several major providers exiting the sector.

If you are being visited by debt collectors at your door, it is worth knowing your rights.

8. Logbook Loans

A logbook loan is a secured loan where your vehicle is used as collateral. The lender takes temporary ownership of your car V5C (logbook) document until the loan is repaid.

You can usually borrow between £500 and £50,000 depending on the value of your vehicle. Interest rates are typically very high, making this one of the more expensive borrowing options. Repayments usually need to be completed within 18 months.

More information about logbook loans is available from MoneyHelper.

9. Loan Sharks (Illegal Lending)

A loan shark is an unlicensed lender who operates outside the law. They are not authorised by the Financial Conduct Authority (FCA) and often charge extreme interest rates with little or no paperwork.

Loan sharks may use intimidation or threats if you cannot repay. It is important to know that you are not breaking the law by borrowing from a loan shark: they are the ones committing a criminal offence.

If you have been targeted by a loan shark, contact the police or report it through the government Stop Loan Sharks service. You can also find out more about dealing with loan shark debt.

What to Do If You Are Struggling With Loan Repayments

If you are finding it difficult to keep up with loan repayments, you are not alone. There are several options available to help you get back on track, including debt management plans, Individual Voluntary Arrangements (IVAs), and other formal debt solutions.

The most important step is to seek help early. The longer you leave it, the harder it becomes to resolve. Swift Debt Help can provide guidance on the options available to you based on your circumstances.

Disclaimer: This article provides general information only and should not be taken as financial advice. Your personal circumstances will determine which options are suitable for you. For guidance tailored to your situation, speak to a qualified debt adviser.

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.

Ready to Find Out if You Qualify for Help?

Use our Solution Finder for a free, no-obligation assessment. Our team can help you understand your options and take the first step towards a debt-free future.

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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.

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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.

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