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Author: Alex Swindells

Person reviewing financial documents and bills at a desk organising debts for an IVA

12 Debts That Can Be Included in an IVA

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

Updated for 2026

An IVA (Individual Voluntary Arrangement) is one of the most popular debt solutions in the UK, and it could allow you to write off a significant portion of the debts included in an IVA. There is no upper limit on the total amount of debt you can include, but only certain types qualify. Below are 12 common debts that can be included in an IVA.

1. Catalogue debts included in an IVA

ordering gifts from catalogue

Catalogues are a convenient way of spreading the cost of purchases, but they often carry high interest rates. If repayments have become unmanageable, your catalogue debts can be included in an IVA. You would need to stop using catalogues for future purchases so you can stick to your monthly budget going forward.

2. Credit card debt

Credit card debt is one of the most common types of unsecured debt in the UK. Many people manage balances by transferring them between cards or making minimum payments, but eventually this can spiral. If your credit card repayments have become unaffordable, particularly alongside other debts, they can be written off through an IVA.

3. Personal loans

Unsecured personal loan repayments are a fixed monthly cost with little flexibility. If you took out a loan to consolidate other debts, the repayment can be substantial. Unsecured personal loans are included in an IVA, which could reduce your monthly outgoings considerably.

4. Overdrafts

Overdrafts are often used as a short-term way to cover bills or other payments, but getting out of one can feel impossible when you are already stretched. You also risk penalty charges if you accidentally exceed your limit. Overdrafts can be included in an IVA. It is generally advisable to switch your bank account to a provider you do not owe money to before starting your arrangement, as accounts with outstanding debts may be frozen.

5. Gas and electricity debt

hob with gas on

Building up arrears with your energy supplier is more common than you might think, especially given rising fuel costs. Gas and electricity debts are unsecured, so they can be included in an IVA. This covers debts from your current property and any previous addresses. Your ongoing utility bill payments will be factored into your monthly budget assessment, so you should be able to keep up with future usage.

6. Water arrears

tap with running water

The rules for water arrears are the same as for gas and electricity. Any existing water debts can be included in your IVA, and your ongoing monthly water payments will be built into your budget so that future bills remain manageable.

7. Council tax arrears

Council tax arrears are classed as a priority debt because the consequences of non-payment can be severe, including bailiff action and, in extreme cases, imprisonment. These debts can be included in an IVA. If you are struggling with council tax debt, it is important to seek advice as early as possible.

8. Payday loans

Payday loans are designed for short-term borrowing, but the reality is that many people end up trapped in a cycle of high-interest repayments. If you can only afford the minimum payment each month, the debt keeps growing. Like other unsecured debts, payday loans can be included in an IVA.

9. Store cards

Store cards can seem attractive when retailers offer discounts at the point of sale, but the interest rates tend to be high. If you have balances spread across several store cards, keeping up with repayments can become difficult. Store card debts are unsecured and can be included in an IVA.

10. Income tax and National Insurance arrears

If you are self-employed (or have been in the past), you may have built up debts with HMRC for income tax or National Insurance. These can be difficult to manage alongside other creditors. Historic HMRC debts, along with the estimated liability for your current tax year, can be included in your IVA alongside other unsecured debts.

11. Tax credit overpayments

If you claim tax credits, overpayments can occur when the DWP holds incorrect information about your circumstances. These overpayments may be recovered from future payments or deducted from your wages. In most cases, tax credit overpayment debts can be included in your IVA.

12. Guarantor loans

A guarantor loan involves a friend or family member agreeing to cover repayments if you cannot. As an unsecured debt, guarantor loans can be included in an IVA. It is worth noting that the lender may pursue your guarantor for any unpaid balance, so this is something to discuss with your insolvency practitioner.

What about debts that cannot be included?

Not every type of debt qualifies for an IVA. Secured debts such as your mortgage or a hire purchase agreement cannot be included. Student loans, child maintenance arrears and certain court fines are also excluded. If you are unsure whether your debts qualify, it is worth getting professional advice. You might also want to consider a Debt Relief Order or bankruptcy as alternative options depending on your circumstances.

Need help with your debts? Get in touch today

At Swift Debt Help, we provide general guidance on IVAs and other debt solutions. We can help you understand how much debt you need for an IVA, which of your debts might qualify, and what alternative options are available to you.

Fill out the contact form below, send us an email, or give us a call to take the first step towards dealing with your debt.

This article is for general information only and does not constitute financial advice. If you need advice tailored to your situation, please speak to a qualified debt adviser or insolvency practitioner.

IVA Documentations

9 IVA Myths That You Should Know About

Written by Alex Swindells on . Posted in IVA.

Updated for 2026

There are plenty of IVA myths circulating online that can make it difficult to know what is true and what is not. An Individual Voluntary Arrangement (IVA) can be the right solution for some people dealing with problem debt, but it depends entirely on your circumstances. Understanding the facts is essential before making any decision. Below, we tackle nine of the most common misconceptions.

1. You will not be able to open a bank account

bank account with credit card

Although you may need to make changes to your banking arrangements, that does not mean you cannot open an account at all. If you owe money to your bank through loans or overdrafts, they have the right to take money directly from your current account to pay towards the debt. This is called the right to offset. If this applies to you, you will need to open a new bank account so your budget is not disrupted.

When you open a new account, you may not be able to have an overdraft facility as that is a form of credit. This should be discussed with your Insolvency Practitioner (IP).

2. You will be forced to remortgage your property

If you are a homeowner, depending on your circumstances and the level of equity in your home, towards the end of the IVA you may be expected to attempt to release a portion of equity by way of a remortgage for the benefit of your creditors.

Any obligations relating to your property will be explained and agreed with you before you enter into the arrangement. In many cases, properties can be excluded from the terms where your equity is either of a low value or unlikely to be released by a remortgage.

Where you have significant equity but a remortgage cannot be achieved, creditors may agree to extend the IVA term in lieu of this equity.

3. All creditors need to agree to the IVA proposal

When you submit your application, your IP will help you draft a proposal for your creditors, offering to pay a certain percentage of the debt and asking that the remainder be written off. Your creditors then decide whether they agree. However, it is a myth that every single creditor must approve the proposal for the IVA to proceed.

Your creditors are not obliged to vote on your IVA proposal. Of those that do vote, only 75% by value must agree for the IVA to be approved and become legally binding on all of them.

4. You have to tell your employer about an IVA

You only need to tell your employer about your IVA if it is specified in your employment contract. Certain roles, especially those involving money handling or financial management, may require you to disclose an IVA. This includes positions such as accountants, bank staff and legal professionals. Otherwise, you are not required to inform your employer.

Details of your IVA will appear on the public Individual Insolvency Register, but your employer would only see this if they actively searched for your name.

5. You cannot obtain any credit during your IVA

It is a standard condition of an IVA that you cannot obtain credit above £500 without the permission of your IP (the Supervisor of your IVA).

During your IVA you are expected to live within a reasonable budget to ensure you can meet your agreed contribution. You should think carefully before obtaining credit of any value, as any subsequent repayments must be affordable and within your budget. Credit obtained after the approval of your IVA will not be covered by the arrangement, and you will be responsible for repaying it separately.

If you feel you need to apply for credit above £500, it is important to seek the consent of your IVA Supervisor beforehand.

6. An IVA will stay on your credit report forever

woman looking at credit score on computer

One reason people hesitate to enter an IVA is the belief that it will remain on their credit report permanently, preventing them from ever borrowing again. While it is true that an IVA is recorded on your credit file, it only stays there for six years from the date of approval. After that period, it is removed entirely.

7. Your IVA will fail if you miss a payment

It is important to make regular payments into your IVA as agreed. However, it is a myth that your IVA will automatically fail if you miss a single payment. If you are struggling, you can speak with your IP who may be able to approve a payment break, giving you some breathing space to get back on track.

Typically, if you fall into arrears equivalent to three months of payments (not including agreed payment breaks), this will be classed as a breach of the arrangement terms and your IVA could be at risk of failure. Always contact your IVA provider if you are having difficulty making payments.

8. Interest charges and fees are not frozen

Interest charges and fees can make it far harder to escape debt. One of the key benefits of a formal arrangement such as an IVA is that interest and fees on your included debts are frozen from the date the arrangement is approved. Your creditors reserve the right to re-apply any owed interest and charges if for any reason your IVA fails, but once the IVA completes successfully, all outstanding balances on included debts are written off.

9. You cannot save money while in an IVA

When you enter an IVA, you work with your provider to produce a budget based on your income and expenditure. Your creditors expect you to offer all of your monthly disposable income towards the arrangement, so putting money into savings may be difficult at the outset.

If your situation improves during the IVA, one of the key principles is that both you and your creditors share the benefit. You would get to keep half of any increase in disposable income, and you are free to use those funds as you see fit.

Other debt solutions to consider

An IVA is not the only option. Depending on your circumstances, you might also look into a Debt Relief Order (DRO), which is now completely free to apply for (the fee was abolished in April 2024) and covers debts up to £50,000 since June 2024. Bankruptcy is another route if your debts are more substantial, though the application fee is currently £680. For lower levels of debt, a Debt Management Plan (DMP) could also be suitable.

Need help separating IVA fact from fiction?

If you want more information about how an IVA works, or you need guidance on whether it is the right option for your situation, Swift Debt Help can point you in the right direction. Fill out the form below, email us or give us a call.

This article is for general information only and does not constitute financial advice. You should seek independent advice before making decisions about your finances.

Request a Debt Assessment

May not be suitable in all circumstances, Fees may apply, your credit rating may be affected.

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

House key

4 Reasons to Consider a Remortgage to Clear Debt

Written by Alex Swindells on . Posted in Debt help.

Updated for 2026

If you are struggling with debt, a remortgage to clear debt could be one way to regain control of your finances. Homeowners with sufficient equity may be able to release funds and pay off outstanding balances in one go, potentially saving thousands in interest. Before committing, it is worth understanding the key benefits and how this option compares to formal debt solutions.

By remortgaging your property you can release equity, which can then be used to clear your debts. Below are some of the key reasons homeowners choose this route.

1. Remortgage to clear debt and pay less interest

Man stacking coins on top of each other on table

Unsecured debts, including credit cards, overdrafts, personal loans and utility bill arrears, can all be cleared by remortgaging your home. Interest rates on unsecured borrowing tend to be considerably higher than mortgage rates because they are not secured against an asset. So, if you remortgage your home and use the funds to settle those debts, you could save a significant amount on interest over the long term.

With mortgage rates in 2026 still competitive compared to credit card APRs (which can easily exceed 20%), consolidating unsecured debts into your mortgage could reduce your overall monthly outgoings considerably.

2. You can remortgage for a better rate

Man collecting keys for a new house from woman with a small model of a house on the table

Even if you are unable to release additional cash by way of a remortgage, it may still be worth exploring this option. Mortgage rates fluctuate regularly, and you may be able to secure a better deal than you had when you first bought your home. This could free up extra money each month, giving you more to put towards your debt repayments.

That said, you are not guaranteed a better rate. Lenders will assess your credit score, the current value of your property and how much you want to borrow. If you are already in financial difficulty, you may find it harder to secure favourable terms when remortgaging.

3. You can borrow a larger amount if necessary

Loan agreement within a folder with calculator and pen on top

If you have large debts, you may be able to borrow a larger amount to clear them. The amount you can borrow is calculated based on the loan-to-value (LTV) ratio. For example, on a 90% LTV, the total amount you can borrow against a property worth £100,000 is £90,000. If you have paid off a portion of your mortgage already, or your home has increased in value, you may be able to access more equity than you initially expected.

4. It is an alternative to formal insolvency solutions

Formal insolvency solutions like bankruptcy (which currently costs £680 to apply for) or an IVA can help when you are unable to pay your debts. A portion of the debt may be written off and you make regular payments to clear the rest. Remortgaging is an alternative that does not carry the same negative impact on your credit score.

If your total debts are under £50,000 and you do not own property, a Debt Relief Order (DRO) might be worth considering instead. Since April 2024, the DRO application fee has been abolished entirely, making it a free option for those who qualify. The debt threshold was also raised to £50,000 in June 2024.

Is remortgaging to clear debt right for you?

If you have a lot of debts and you are unsure how to deal with them, Swift Debt Help can point you in the right direction. Get in touch today and we can discuss whether remortgaging or another debt solution might suit your situation.

This article is for general information only and does not constitute financial advice. You should seek independent advice before making decisions about your finances.

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.

Summer holiday on beach

8 Tips on Saving Money For Your Summer Holiday

Written by Alex Swindells on . Posted in Debt help.

Updated for 2026

Saving money for your summer holiday can feel like a challenge, especially when your finances are already stretched. Whether you are heading abroad or staying in the UK, the costs quickly add up. If your budget is tight, you might think a holiday is off the table this year, but that does not have to be the case.

With a few simple changes to your spending habits and your holiday plans, you can make it a lot more affordable. Here are 8 practical tips on saving money for your summer holiday.

1. Set a budget for saving money for your summer holiday

man working out his taxes with a calculator

Having a strict budget in place is the most important thing you can do to save for your next holiday. Setting a clear budget to manage your spending will help you cut out waste, and that extra money can go straight into your holiday fund.

You also need to set a budget for your holiday itself. This gives you a saving target to aim for, so you can work out exactly how much you need to save each month to afford the trip. Be realistic when setting your budget so you can set money aside without missing any bill payments. If you are struggling with multiple debts, it may be worth looking into ways to deal with your debt first before committing to saving.

2. Consider an all-inclusive holiday

Family on the beach enjoy the waves from the sea

All-inclusive holidays can be a great option when you are on a tight budget. Your flights, accommodation, and most of your food and drink are paid for upfront, usually at a discount rate as they are a package deal. If you tend to overspend while on holiday, all-inclusive deals make it much easier to stick to a budget because you do not need to buy much while you are there. Many all-inclusive packages also offer free places for young children.

3. Think about when you book

Two women booking a holiday on laptop together

Booking your holiday too late can cost you more. Although last-minute deals can save money if you are flexible enough, you may get a better deal if you book early. Booking early gives you more choice about which dates you travel on, so you can book the cheapest ones before they fill up. You also have more time to save when you start as early as possible.

4. Clear your cookies on online booking sites

Cookies are small pieces of text that are sent by websites you visit and stored on your device. They contain information about what pages you looked at and other details about your activities on the website. When you revisit the same site, it uses that data to personalise your experience.

When you view flights or hotels online, a record of that search is saved in your cookies. Next time you visit the site, it remembers that you have already looked at this page before. Some people believe this can influence the prices shown to you on subsequent visits. Whilst it is not 100% clear whether this is the case, clearing your cookies before revisiting online booking sites may help you see lower prices. Using private or incognito browsing mode is another simple way to avoid this.

5. Be flexible with your travel dates

Calendar on smartphone

Being flexible with dates and times can be very helpful if you want to save money on your holiday. Certain dates will be more expensive than others (school holidays, for example), and flight costs also vary depending on the time of day you fly. If you are travelling with your family, you are limited to the school holidays, but you can still save money if you travel in the final weeks of the holidays. You could also consider a holiday during the half term rather than the summer holidays.

Flying late at night or very early in the morning is usually cheaper too. Although this does make travel arrangements more difficult, it may be worth it if you can save a lot of money.

6. Save £3 a day

Saving money can feel daunting, but it is more manageable when you break it down into small goals. The idea of saving £1,095 in a year sounds like a lot, but £3 a day is not that difficult. Think about some of the small purchases you make every day that you can cut out, and you will soon be able to put money into your holiday fund. Cutting back on takeaway coffees, meal deals, or unused subscriptions can all add up quickly.

If rising energy costs are eating into your spare cash, have a look at our energy saving tips to free up some extra money each month.

7. Weigh your luggage beforehand

Suitcase luggage stacked on top of each other

Airlines charge different fees depending on who you fly with and you can sometimes get caught out at the airport if your luggage is too heavy. You can avoid this if you weigh your luggage before you leave to make sure you have not exceeded the weight limit. A set of suitcase scales for home use is a small investment that can save you from unexpected charges at check-in.

8. Ensure you get travel insurance

Travel insurance is a must, but many people skip it because they are trying to cut costs. However, if something goes wrong while you are away you could be stuck with large medical bills or other unexpected fees. You also have no protection if your holiday is cancelled, which could mean losing all of the money you saved.

A travel insurance policy can be inexpensive and it can save you a lot of money in difficult situations. Before you take out a policy, check whether you already have one included with other financial products. Many bank accounts, for example, offer some level of travel cover. However, double-check what is included because it may not be extensive enough. If you do need a separate policy, use a comparison site to find the most affordable deals. Looking after your credit score can also help you access better financial products in general.

These simple tips can help you save money and cut the costs of travel, so you can more easily afford an enjoyable holiday. However, if you find yourself in a position where you are unable to save because of mounting debts, there are options available.

At Swift Debt Help, we provide general information about a range of debt relief options. Get in touch today and we can discuss different solutions that may help you regain control of your finances. Please note that the information on this site is for general guidance only and does not constitute financial advice.

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.

Woman at computer on tablet

5 Things To Know Before Declaring Bankruptcy

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

Updated for 2026

Declaring bankruptcy could be an option if you have mounting debts that you are unable to pay. However, bankruptcy is not something you should rush into because it has long-term effects on your life and your finances. Here are five things you should know before declaring bankruptcy in 2026.

1. Declaring bankruptcy can have an impact on your assets

Hand drawing of man in shirt and tie losing his assets to bankruptcy

When you declare bankruptcy, you are generally required to make a reasonable effort to pay back your debts, and this often includes using your assets. Things that are considered essentials, like clothes, furniture, and cooking appliances are typically protected. However, other belongings may be passed on to the Official Receiver, the person that deals with your bankruptcy. These could then be sold to raise money to pay your debts.

Items that you may be allowed to keep include:

  • Clothes
  • Furniture
  • Household appliances
  • Tools required for your job
  • A car that you need for work or other basic needs (if you are disabled, for example)

There are some exemptions, and if certain assets on this list are valued very highly, they can still be sold. For example, you may be required to sell your car and given around £1,250 to buy a cheaper replacement, with the rest going towards your debts.

Jointly owned assets can also be affected. If they are sold, the money would typically be split between the Official Receiver and the person that has a shared interest in the asset.

Depending on your situation, you may have to move home when you declare bankruptcy. If you rent your home, you generally will not be affected and your landlord will not be informed. But if you own your home, you may be required to sell it to raise money to pay your debts. In some cases, you can prevent this.

The Official Receiver has three years to decide what to do with your home. If they have not taken steps to sell it in that time, your interest in it is restored and you can keep your home.

It is worth considering how your assets could be impacted before you declare bankruptcy.

2. If you own a business, bankruptcy will have an impact

Drawing of chart a declining chart with an arrow pointing downwards

When you declare bankruptcy, there are specific rules related to the running of a business. For the 12-month period of your bankruptcy, you are generally forbidden from acting as the director of a limited company or managing it in any way without the permission of the court. The company itself can continue to operate but you would need to appoint somebody else to manage it for you.

If you are self-employed and registered as a sole trader, the rules are different. You may be able to continue operating as normal, but if you run a business under a name that’s different to the one in which you were made bankrupt, you must tell everyone you do business with the name under which you were made bankrupt.

Bankruptcy will also be recorded on your credit reports for six years. This can seriously impact your ability to get credit in the future, which can be a big problem for businesses.

Business owners might want to explore other options like an Individual Voluntary Arrangement (IVA) or a Debt Management Plan to avoid the restrictions on their ability to run their company.

3. Your bank accounts could be frozen

Young woman feeling displeased about debt on her credit card while checking bank account over laptop at home.

The Official Receiver takes control of all of your assets, including your bank account, when you declare bankruptcy. This often means that your bank accounts are frozen and you cannot withdraw any money. If you have money in your account that is required to meet your essential living costs, the Official Receiver may arrange with the bank to release those funds to you. The bank will then decide if you can continue using your account.

4. Bankruptcy doesn’t cover all of your debts

Pound coins stacked on top of each other on a table

Writing off debt is one of the major benefits of bankruptcy but not all debts are covered. It is important to understand exactly which debts are not included because you will still be liable for them, even if you file for bankruptcy. Debts generally not covered include:

  • Secured debts
  • Child maintenance debts
  • Student loans
  • Court fines
  • Council tax debts (in some cases)

5. Take the right steps before declaring bankruptcy

Person wearing running shoes taking steps up the stairs

There are some key steps to consider when looking into bankruptcy to minimise the impact.

Consider whether bankruptcy is the right debt solution for you

Bankruptcy is not always the most suitable debt solution. It may be worth looking into options such as Debt Management Plans (DMP), Debt Relief Orders (DRO) or Individual Voluntary Arrangements (IVA) before declaring bankruptcy. As of 2026, DROs are available for debts up to £50,000, and the DRO application fee has been abolished, making them free to apply for. You may be able to limit the impact on your credit reports and avoid financial restrictions by finding a different debt solution.

Apply for bankruptcy

The next step is to fill out the necessary paperwork and pay the fee of £680. This can be paid in instalments, if necessary, with a minimum payment of £5. However, a bankruptcy order will not be granted until the fee is paid in full. You can find the application forms on the gov.uk website.

Set a budget for your living costs

As part of your bankruptcy application you will need to put together a budget based on your essential expenses. When you declare bankruptcy, you will generally not be permitted to spend beyond this, as all additional money will go towards your debts.

Cooperate with the Official Receiver

The Official Receiver is the person that manages your bankruptcy. They will typically contact you within two weeks of your application to discuss your bankruptcy. They also take control of your assets. You need to work with them while they distribute your money and assets to pay off a portion of your debts.

Pay back your debts and discharge from bankruptcy

Once everything is in place, you may need to continue paying towards your debts for up to 3 years. This depends on your circumstances and your disposable income after meeting your essential outgoings. As long as you cooperate with the Official Receiver and meet all of your obligations, you would typically be discharged from bankruptcy after 12 months.

Declaring bankruptcy could be one solution to your debt problems, but it is not always the only option. For general information about debt solutions, fill out the contact form below to get in touch with Swift Debt Help. This information is for general guidance only and should not be considered financial advice. Your individual circumstances may vary, so speaking with a qualified debt adviser is always recommended.

Request a Debt Assessment

May not be suitable in all circumstances, Fees may apply, your credit rating may be affected.

Disclaimer: This content is for general informational purposes only and does not constitute financial advice. Financial information entered must be accurate and would require verification. Other factors will influence your most suitable debt solution.

Drawing of computer screen that shows 'credit score'

6 Ways To Improve Your Credit Score

Written by Alex Swindells on . Posted in Debt help.

Updated for 2026

Your credit score plays a key role in how much you can borrow, the interest rates you pay on loans, and even your job prospects in some cases. If you find yourself in financial difficulty and miss payments, your score will drop. The good news is there are practical steps you can take to improve your credit score, and many of them are straightforward.

If you are concerned about your credit score, here are 6 ways to improve it.

1. Make all outgoing payments on time

man looking at credit check document

One way to improve your credit score is to make all of your outgoing credit payments on time. If you can get into the habit of paying everything on time, it will show lenders that you are reliable and trustworthy.

If you are regularly missing payments, there are a few things you can do to make paying easier. Set up Direct Debits so that the payments are automatically taken from your account, and write a clear budget to make sure that you don’t miss payments. For more tips on managing your outgoings, read our guide on dealing with debt.

2. Register on the electoral roll

Drawing of person putting polling card in ballot for election vote

One of the easiest ways to improve your credit score is to make sure you are registered on the electoral roll. Many people don’t realise that it can actually have a big impact on your credit score. If you are not registered, lenders have a harder time verifying your identity and this could lead to your application being declined.

Registering is easy. You can register online, and all you need to do is follow the on-screen instructions. If you are already registered, check that all of your details are correct and up to date. If not, update them as soon as possible.

It only takes a few minutes to register, so this is one of the easiest ways to improve your score.

3. Keep credit card debt below 30%

Young concentrated businesswoman in glasses and striped shirt working with papers at home

Your credit utilisation ratio is the amount of credit you are using compared to the amount of credit you have available.

It is best to keep your credit utilisation ratio below 30%. This means that if you have a credit card with a limit of £1,000, you should not have debts of more than £300 on that card.

If your credit utilisation ratio is higher, it suggests to lenders that you may be reliant on borrowing to cover expenses. This could lead to your credit score being lowered. For more on using credit wisely, see our post on how to efficiently use your credit card.

It is a common misconception that not having a credit card at all is better for your credit score. Borrowing small amounts and paying them back on time will improve your score, but you need to avoid borrowing too much. That’s why keeping credit card usage at around 30% or lower is best for your credit score. You can read more about this in our guide to the benefits of using your credit card sensibly.

4. Develop your credit history

Woman using a credit card whilst on her laptop

If you don’t have much of a credit history, it can be difficult to get a loan or a mortgage. This is because lenders don’t have much to go on when they are assessing your application. This is a common issue for younger people who have not borrowed money in the past.

There are a few things you can do to develop your credit history and improve your score. Many lenders offer credit builder cards specifically designed for this purpose. Using one on a regular basis and paying the balance off in full each month will steadily increase your score.

5. Report mistakes on your credit report

Woman on phone to bank to report mistakes on credit report

If you have ever been refused credit, it’s important to check your credit report. Your credit score can be lowered if there are mistakes on your report. These errors can range from incorrect information about your address or date of birth to missed payments that you have already paid.

If you find an error on your credit report, it is important to report it straight away. You can do this by contacting the company to which the credit relates and asking them to update their records. You could also contact the credit reference agencies (Experian, Equifax, and TransUnion) directly and raise a dispute. They will then contact the lender on your behalf. The issue will be investigated and, if appropriate, will be rectified. Your score will then be adjusted accordingly. For more on what can affect your rating, have a look at our article on the common causes of a decreased credit score.

6. Ensure your credit file has no fraudulent activity

fraudulent activity

If you suspect that someone has fraudulently opened a credit account in your name, it is important to take action straight away. This can be done by contacting the police and the credit reference agencies. You should also check your bank and credit card statements regularly for any unusual activity.

Fraudsters taking out credit in your name can seriously damage your score, so it needs to be rectified immediately. Bear in mind that you may have to prove that you did not apply for the credit if it is not immediately obvious that you are a victim of fraud.

How to improve your credit score if you’re struggling with debt

If you are looking to improve your credit score after being declined for credit, or you need access to borrowing just to cover essential outgoings, it may be time to look at other debt repayment options. At Swift Debt Help we can provide general information about debt solutions based on your circumstances. It is important to note that most debt restructuring options will be recorded on your credit file and could have an impact on it. Call us on 0161 843 1516 to find out more about the options that may be available to you.

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.

Creditor repayment

Can a Creditor Refuse a Payment Plan?

Written by Alex Swindells on . Posted in Debt help.

Updated for 2026

If you are unable to afford your full contractual repayments, you may be wondering: can a creditor refuse a payment plan? The short answer is yes, they can. When you offer to pay a reduced amount each month until the debts are cleared and your creditors accept, it makes things far more manageable. But if they don’t accept, you still have options worth knowing about.

Speak to Your Creditors First

creditors meeting together and looking through paperwork

If one or more of your creditors haven’t agreed to accept the monthly amount you have offered, this could be because they believe the offer is too low based on your circumstances. It helps for them to understand your situation in full, so discuss this with them directly. They may carry out a full review of your income and expenditure. If you can demonstrate that this is genuinely the best offer of repayment you can make, they may be more inclined to accept.

Can a Creditor Refuse a Payment Plan Legally?

Your creditors are under no legal obligation to accept a payment plan. However, they may be willing to engage if they have a full understanding of your circumstances. For many people, requesting a reduced payment plan is a final step before looking at formal debt solutions such as a Debt Relief Order (DRO), an Individual Voluntary Arrangement (IVA), or Bankruptcy. A creditor may prefer to accept your offer rather than risk being subject to one of these procedures, through which some debt write-off is likely. Within a reduced payment plan, your creditors will still ultimately expect to be paid in full.

Even if you genuinely cannot afford your payments, your creditors can still refuse the plan and take further action to collect the debt, such as sending bailiffs. By agreeing to a payment plan and accepting lower payments, it takes creditors longer to recoup their money, so some may be reluctant to do so.

What if a Creditor Refuses My Offer?

man giving a thumbs down

If your creditors will not agree to a payment plan, it may be worth looking into other options for dealing with the debt. One route is to use a company or charity to negotiate a Debt Management Plan (DMP) on your behalf. This is similar to what you may have been trying to do yourself, but the company will have experience dealing with creditors and can take the stress of managing multiple debts away from you. Be aware that if your creditors reject the offer of repayment, further collections activity can continue, including the application of fees and charges or legal action.

If you are unable to pay back the debt, there are formal debt solutions that some people in this situation explore, including an IVA (Individual Voluntary Arrangement), a DRO (Debt Relief Order), and Bankruptcy. These are formal insolvency procedures that, in some cases, may allow a portion of debt to be written off. They also provide legal protection against creditors, meaning they cannot continue pursuing you for debt payments during the arrangement.

What Happens if a Creditor Sends You a Default Notice?

Being issued with a default notice does not necessarily mean you will be taken to court. It is a standard document that a creditor must send if you are not meeting your contractual repayments. A default can affect your credit score, but legal action is usually a last resort for creditors, and they may still be willing to work with you. You could also consider writing a debt settlement proposal letter to try and reach an agreement.

Get in Touch with Swift Debt Help

If you are having difficulty paying your debts and your creditors are unwilling to accept a payment plan, get in touch today to find out more about your options. Our team can provide general information on alternative debt solutions and help you understand what might work for your situation. This content is for general informational purposes only and does not constitute financial advice.

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.

Writing Debt Settlement Proposal letter

How To Write A Debt Settlement Proposal Letter

Written by Alex Swindells on . Posted in Debt help.

Updated for 2026

A debt settlement proposal letter could help you clear your debts quickly if you have access to a lump sum. This type of letter allows you to offer your creditors a reduced amount as a one-off payment in exchange for the remaining balance being written off. Creditors may accept less than the full amount owed because they receive the funds immediately and can close the account. People sometimes use this approach after receiving an inheritance, redundancy payout, or other windfall.

Different creditors may have their own preferred method for receiving a debt settlement offer. It is worth contacting your creditors first to find out how they want you to correspond with them. If your creditors ask you to put your offer in writing, the tips below can help you put together a clear and effective debt settlement proposal letter.

What to include in your debt settlement proposal letter

Writing a debt settlement proposal letter
  • Write clearly and professionally – The way you write your letter matters. It needs to be well structured and specific about the wording. Make it clear that this is an offer of a full and final settlement, and that if accepted, the creditor agrees not to pursue the remaining debt in future.
  • Provide account information – Your creditors need to know exactly which account the letter relates to. Include all account numbers and reference numbers for that particular debt. These details can be found on correspondence from your creditors. If you hold more than one account with the same creditor, make that clear so there is no confusion about which debt you are offering to settle.
  • Give your personal details – Creditors need your personal details to locate your account. Include your full name, address, telephone number, email address, and date of birth. If you have recently moved, provide your previous address too, in case their records have not been updated.
  • Explain your situation – Giving your creditors context about why you are making this offer can work in your favour. For instance, if you are struggling to keep up with contractual repayments, explaining this may encourage them to accept a reduced lump sum now rather than risk receiving less over time. If you are dealing with debt while unemployed, this context could be particularly relevant.
  • State your proposed amount – Be specific about how much you are offering to pay. A clear figure removes any ambiguity.
  • Set a payment date – Tell your creditors when you expect to make the payment. Keep this realistic so they can process the settlement promptly.
  • Disclose the source of funds – Let the creditor know where the money is coming from. They may ask for proof before agreeing to accept the settlement.

Benefits of writing a debt settlement proposal letter

There are several potential advantages to settling your debts with a lump sum payment.

  • It could resolve financial hardship – If you are unable to keep up with monthly repayments, a debt settlement may provide a clean break. Once accepted, you would no longer have those monthly obligations hanging over you.
  • It may improve your overall finances – Clearing debt quickly can take the pressure off and make it easier to manage your remaining finances and establish a workable budget.
  • You may pay less than the full amount – If your creditors agree, you could save a significant amount compared to repaying the debt in full over time.
  • Faster resolution – Rather than years of monthly payments, a successful settlement can close the debt in one transaction.

Potential downsides of a debt settlement

While a debt settlement can be a useful route out of debt, there are some things to be aware of before sending your letter.

  • Creditors are not obliged to accept – There is no guarantee your creditors will agree to your offer. If they decline, you may need to explore other options such as a payment plan or formal debt solution.
  • It could affect your credit file – A debt settlement may be recorded on your credit report differently to a fully repaid debt. Future lenders would be able to see that the debt was settled for less than the full amount, which could influence lending decisions. You can read more about improving your credit score after dealing with debt.
  • Tax implications – In some circumstances, debt that has been written off could be considered income for tax purposes. It is worth checking HMRC guidance or speaking to an accountant if you are unsure.

What if your settlement offer is rejected?

If your creditors do not accept your debt settlement proposal letter, there are other options that may be available to you depending on your circumstances. These could include negotiating a reduced monthly payment plan, entering a structured debt repayment process, or looking into formal debt solutions such as an IVA or Debt Relief Order. Speaking to a qualified debt adviser can help you understand which route might be most appropriate for your situation.

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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.

Heating thermostat

Fuel Poverty UK: What It Means and How to Deal With It in 2026

Written by Alex Swindells on . Posted in Debt help.

Fuel poverty remains one of the biggest financial challenges facing UK households in 2026. With the Ofgem energy price cap set at £1,758 per year for a typical household during Q1 2026 (dropping to £1,641 from April), millions of people are still spending a significant chunk of their income on keeping their homes warm. If your energy costs are leaving you short on essentials, you could be experiencing fuel poverty. This guide explains what fuel poverty means, why energy prices remain high, and practical steps you can take to reduce your bills.

This article was originally published in a previous year and has been fully updated for 2026 to reflect current legislation, figures, and guidance.

What is fuel poverty?

Electricity towers in the UK representing rising energy costs and fuel poverty

In England, fuel poverty is measured using the Low Income Low Energy Efficiency (LILEE) indicator. Under this measure, a household is considered fuel poor if they live in a property with an energy efficiency rating of band D or below and, after spending what they need on energy, their remaining income falls below the official poverty line.

Put simply, if heating your home properly means you cannot afford other basic necessities, you are likely in fuel poverty. According to government statistics published in 2025, millions of English households meet this definition, with those in older, poorly insulated homes and on lower incomes being hit hardest.

Why are energy prices still high in 2026?

Gas cooker hob representing household energy costs

Although wholesale gas prices have come down from the extreme peaks of 2022, energy bills in 2026 are still well above pre-2021 levels. Several factors keep prices elevated:

  • Ongoing global demand for natural gas, particularly from Asia and Europe
  • Continued geopolitical uncertainty affecting supply chains
  • The cost of transitioning to renewable energy sources, which is partially passed on to consumers
  • Network and infrastructure costs that make up a growing portion of your bill
  • Standing charges, which remain high regardless of how much energy you actually use

For Q1 2026, the Ofgem price cap sits at £1,758 per year for a typical dual-fuel household paying by direct debit. From April 2026, this falls to £1,641. While these figures are lower than the crisis peaks of 2022-2023, they remain a serious burden for households on lower incomes. If you are already struggling with utility bills debt, rising costs can quickly spiral.

How to reduce your energy bills and avoid fuel poverty

There are practical steps you can take to bring your energy costs down. Some require an upfront investment, while others are free changes you can make straight away. For more detailed guidance, read our full guide on energy saving tips to help you avoid debt.

Compare and switch your energy tariff

If you are on a standard variable tariff, you are likely paying more than you need to. Energy comparison sites let you check whether a fixed deal could save you money. Switching takes minutes and your new supplier handles the process for you. Even small savings per month add up over a year.

Use a smart meter to track your usage

Smart meters are available free from your energy supplier and give you real-time data on how much gas and electricity you are using. This makes it easier to spot where energy is being wasted and adjust your habits accordingly. Your supplier also gets automatic readings, so you avoid estimated bills.

Switch to LED lighting

Replacing old halogen bulbs with LED alternatives is one of the simplest ways to cut electricity costs. LED bulbs use up to 80% less energy and last significantly longer, saving you money on replacements too.

Choose energy-efficient appliances

Large appliances like fridges, washing machines and tumble dryers are among the biggest energy consumers in your home. When replacing them, look for models rated A or B on the energy label. The upfront cost is often higher, but the running costs are considerably lower over the appliance’s lifetime.

Turn your thermostat down by one degree

Reducing your thermostat by just one degree can cut your heating bill by around 10%, according to the Energy Saving Trust. Most people do not notice the difference in comfort, but you will notice the difference on your bill.

Wash clothes at a lower temperature

Modern detergents work effectively at 30 degrees. Washing at this temperature instead of 40 degrees reduces energy consumption for each cycle by roughly 40%, which adds up over hundreds of washes per year.

Improve your home insulation

Poor insulation is one of the main drivers of fuel poverty. Heat escapes through the roof, walls and windows, forcing you to spend more on heating. Double-glazed windows, loft insulation and cavity wall insulation can all make a significant difference to how well your home retains heat.

The government’s Great British Insulation Scheme has been helping eligible households get free or subsidised insulation, though this scheme is due to close at the end of March 2026. Check with your energy supplier to find out whether you can still apply. Other support may be available through the Energy Company Obligation (ECO) scheme, which funds energy efficiency improvements for low-income and vulnerable households.

Government help with fuel poverty and energy bills

Several government schemes exist to help people who are struggling with energy costs. It is worth checking whether you qualify for any of the following:

Warm Home Discount Scheme

The Warm Home Discount gives eligible households a one-off £150 discount on their electricity bill each winter. You may qualify if you receive the Guarantee Credit element of Pension Credit, or if you are on a low income and meet your energy supplier’s criteria. In England and Wales, most eligible people receive the discount automatically.

Winter Fuel Payment

If you were born before 22 September 1959, you could receive between £100 and £300 towards your heating bills for winter 2025/2026. Important changes were introduced recently: if your income exceeds £35,000, HMRC will recover the payment. Check the GOV.UK website for the latest eligibility rules, as these have changed significantly from previous years. Note that if you live in Scotland, a separate Pension Age Winter Heating Payment applies instead.

Cold Weather Payments

If you receive certain benefits (such as Universal Credit, Income Support or Pension Credit) and the temperature in your area drops to zero degrees or below for seven consecutive days, you may be eligible for a Cold Weather Payment of £25 for each qualifying week.

Household Support Fund

Your local council may offer help through the Household Support Fund, which can cover energy costs and other essentials. Eligibility varies by area, so contact your council directly to find out what support is available.

Are you in debt because of fuel poverty?

If high energy costs have pushed you into debt, you are not alone. Fuel poverty often leads to missed payments on utility bills and other household expenses, which can quickly become unmanageable. If you are struggling with rising utility bills and mounting debts, it is important to seek help early before the situation gets worse.

Swift Debt Help can provide you with information about debt management solutions that may be suitable for your circumstances, including an Individual Voluntary Arrangement (IVA) or bankruptcy. Get in touch with us today for a free, no-obligation debt assessment.

This article is for general information purposes only and does not constitute financial advice. Everyone’s financial situation is different, and you should seek professional advice tailored to your individual circumstances before making any decisions about managing your debts. Swift Debt Help is not a financial adviser.

Miniature house and keys

Can You Get a Mortgage with an IVA?

Written by Alex Swindells on . Posted in IVA, Mortgage.

If you’re wondering whether you can get a mortgage with an IVA, the short answer is yes, but it comes with significant challenges. An Individual Voluntary Arrangement typically means you already have substantial debts and a damaged credit history, both of which lenders take seriously. Borrowing restrictions during the arrangement add further hurdles. That said, getting a mortgage with an IVA is not impossible if you understand the process and plan carefully.

This article was originally published in a previous year and has been fully updated for 2026 to reflect current legislation, figures, and guidance.

This guide covers what you need to know about applying for a mortgage while in an IVA, the obstacles you could face, and how to improve your chances of success.

This article is for general information only and does not constitute financial advice. If you need tailored guidance, speak to a qualified financial adviser or your Insolvency Practitioner.

Can You Get a Mortgage with an IVA?

Person holding keys for house after getting a mortgage with an IVA

During an IVA, your debts are consolidated into a single monthly payment that you must maintain for the full duration of the arrangement, typically five to six years. Strict financial restrictions apply throughout, particularly around taking on new credit.

Under the terms of most IVAs, if you want to borrow more than £500, you need written permission from your Insolvency Practitioner (IP). This means that even though getting a mortgage with an IVA is technically possible, you cannot proceed without your IP’s approval first.

It is important to discuss your plans with your Insolvency Practitioner early on. They can help you understand whether a mortgage application is realistic given your financial position and IVA terms.

Will You Need a Specialist Mortgage Lender?

In most cases, yes. High street lenders rarely accept applications from people currently in an IVA. You will likely need to work with specialist or “adverse credit” mortgage lenders who have products designed for borrowers with poor credit histories.

These specialist lenders offer more flexible criteria, but the trade-off is clear: higher interest rates, larger fees, and a bigger deposit requirement. As of 2026, some specialist lenders may ask for deposits of 15% to 25% or more, compared to the 5% to 10% that mainstream lenders might accept from borrowers with clean credit.

A mortgage broker who specialises in adverse credit can be particularly helpful here, as they will know which lenders are most likely to consider your application.

How Does an IVA Affect a Mortgage Application?

Mortgage application form

An IVA can have a significant impact on every stage of the mortgage application process. Your primary obligation remains paying into the arrangement and clearing your debts, and the restrictions exist to protect that commitment. If you do obtain a mortgage while in an IVA, you may also need to attempt to release equity from the property towards the end of the IVA.

Several factors will shape what happens when you apply:

Disposable income

Lenders assess whether you can afford monthly repayments by looking at your disposable income. The difficulty is that most of your spare money must go towards your IVA contributions. If you are currently renting, the amount you pay in rent each month is often the best indicator of what mortgage repayment you could realistically manage.

Credit report impact

An IVA appears on your credit file and stays there for six years from the date it was registered. This has a severe negative effect on your credit score. Lenders run credit checks as part of every mortgage application, and an active IVA will count heavily against you. Many lenders will decline your application outright.

Higher costs and limited options

Even if a lender does approve your application, the mortgage is likely to carry high interest rates because of the perceived risk. When combined with your ongoing IVA payments, the total monthly outgoings can become difficult to sustain. In practice, many people in an IVA find that even when they qualify for a mortgage, the terms make it unaffordable.

Equity release obligations

If you already own a home when you enter an IVA, your arrangement may require you to attempt to remortgage and release equity in the final year. This equity is paid to your creditors as part of the IVA terms. Understanding how homeownership interacts with your IVA is essential before taking on any new mortgage commitments.

How to Get a Mortgage with an IVA: Step by Step

Row of little red houses representing mortgage options

If you have decided that applying for a mortgage is the right move and you can afford it, here is how to approach it:

1. Get permission from your Insolvency Practitioner. Applying for credit over £500 without their written consent breaches your IVA terms. A failed IVA could leave you facing your creditors directly, potentially leading to bankruptcy.

Your IP will consider:

  • Whether the mortgage is genuinely necessary
  • How long it will take you to repay
  • Whether you can comfortably cover the repayments alongside your IVA contributions
  • Whether it benefits or harms the interests of your creditors

They can refuse the request if they believe it would put your IVA at risk.

2. Research your options thoroughly. Compare deals from specialist lenders, paying close attention to interest rates, fees, and deposit requirements. A mortgage broker experienced with adverse credit situations can save you time and help you avoid unnecessary hard credit checks that would further damage your score.

3. Present the details to your IP. Once you have found a suitable deal, your Insolvency Practitioner will need to see the monthly repayment amount and confirm they are satisfied before giving final permission.

Applying for a Mortgage After an IVA

For many people, waiting until the IVA has finished is a far better strategy. Once you have completed your arrangement and been formally released, you are no longer bound by borrowing restrictions and do not need anyone’s permission to apply.

You will also have full control of your disposable income again, with no monthly IVA contributions to make. This generally means you can demonstrate stronger affordability, which broadens the range of lenders and products available to you.

There is a catch, though: the IVA remains on your credit file for six years from its start date. Lenders tend to view it less seriously as time passes, so applying a couple of years after completion rather than immediately can make a real difference to the interest rates you are offered.

Using that waiting period wisely makes a significant difference. Focus on:

  • Rebuilding your credit score with small, manageable credit (such as a credit builder card)
  • Saving a larger deposit to reduce the loan-to-value ratio
  • Keeping your finances stable and avoiding any missed payments
  • Checking your credit report for errors and getting them corrected

Bear in mind that a rejected mortgage application leaves a mark on your credit file, so only apply when you are reasonably confident of acceptance. Speaking to a broker beforehand can help you gauge your chances without committing to a formal application.

For more on how much debt you need to qualify for an IVA, or to understand what an IVA involves before you make any decisions, explore our other guides.

Find Out Whether You Could Be Better Off With An IVA.

Am I Eligible For an IVA?

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

Key Takeaways

Getting a mortgage with an IVA is possible but comes with real obstacles: you need your Insolvency Practitioner’s permission, you will likely pay higher rates, and your options are limited to specialist lenders. For many, waiting until the IVA is complete and spending time rebuilding credit is the more practical route to homeownership.

Whatever you decide, make sure you understand the full implications before committing. Speak to your IP, consider professional mortgage advice, and never rush into borrowing that could put your debt solution at risk.

The information in this article is for general guidance purposes only and does not constitute financial or legal advice. Everyone’s financial situation is different. If you are unsure about your options, please seek independent advice from a qualified professional.