Tag: Debt Help

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

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

Updated for 2026

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

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

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

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

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

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

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

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

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

Debt Solutions for Payday Loan Debt

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

Individual Voluntary Arrangement (IVA)

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

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

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

Debt Relief Order (DRO)

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

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

Debt Management Plan (DMP)

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

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

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

Bankruptcy

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

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

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

Get Free Payday Loan Debt Help

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

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

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.

Get Help Today

How to Deal With Rising Utility Bills

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

Updated for 2026

Millions of UK households are feeling the squeeze from rising utility bills. Energy costs, water charges, and council tax have all climbed in recent years, and 2026 is no different. If you are struggling to keep up with payments, or worried about falling behind, you are not alone.

This guide covers practical steps you can take right now to reduce your bills, plus a breakdown of the formal debt solutions available if your utility debts have become unmanageable.

Why Are Utility Bills Still Rising in 2026?

The energy price cap set by Ofgem continues to shift each quarter. While wholesale gas prices have settled compared to the spikes of 2022 and 2023, suppliers have been passing on infrastructure and green levy costs to customers. Water bills have also risen following price reviews by Ofwat, and council tax increases have been confirmed across most local authorities.

For households already managing tight budgets, these incremental rises add up. According to MoneyHelper, energy and household bills typically account for around 25% of a household’s monthly spending. When those costs climb, the knock-on effect touches everything from food shopping to debt repayments.

Practical Steps to Reduce Your Utility Bills

Before looking at formal debt solutions, there are several things you can do to bring your costs down or manage payments more effectively.

Switch or renegotiate your tariff

Even with the price cap in place, you may be on a more expensive variable tariff when a fixed deal could save you money. Contact your energy supplier directly, or use a comparison service to check whether a better rate is available. If you are out of contract, you have nothing to lose by asking.

Apply for the Warm Home Discount

The Warm Home Discount scheme provides a £150 discount on your electricity bill each winter. You may qualify automatically if you receive certain benefits, including Pension Credit or Universal Credit with a low income. Check your eligibility on gov.uk or contact your supplier.

Set up a payment plan with your supplier

If you have already fallen behind on payments, the worst thing you can do is ignore it. Energy suppliers are required to work with you to find a manageable repayment arrangement. This could mean spreading your arrears over several months on top of your regular usage. Your supplier must consider what you can realistically afford.

Request a prepayment meter

A prepayment meter lets you pay for energy as you go, which can help with budgeting. Be aware that emergency credit on prepayment meters is a loan, not free energy, so keep an eye on your balance. Since 2024, Ofgem rules mean that prepayment customers should not be charged more than direct debit customers under the price cap.

Check your water bill

If you live alone or in a small household, a water meter could reduce your bill. Most water companies will install one for free. You can also apply for social tariffs or reduced rates if you are on a low income: contact your water provider to find out what support is available in your area.

What If Your Utility Debts Are Unmanageable?

When practical cost-cutting is not enough and debts are stacking up, it may be time to consider a formal debt solution. Here are the main options available in England and Wales.

Debt Management Plan (DMP)

A Debt Management Plan is an informal agreement where a third-party company negotiates with your creditors on your behalf. You make one affordable monthly payment, and the DMP provider distributes it across your debts. A DMP typically lasts between five and ten years, depending on how much you owe and what you can afford. It is flexible: you can adjust payments if your circumstances change.

Individual Voluntary Arrangement (IVA)

An Individual Voluntary Arrangement is a legally binding agreement set up through a licensed Insolvency Practitioner. Your IP assesses your income and essential spending, then proposes a monthly payment to your creditors over a fixed period, usually five or six years. At the end of the IVA, any remaining unsecured debt included in the arrangement is written off. You need a minimum debt of £5,000 to qualify.

An IVA also gives you legal protection from creditor action, meaning they cannot chase you for payments or add further interest once the arrangement is in place.

Debt Relief Order (DRO)

A Debt Relief Order is designed for people with low income, few assets, and debts up to £50,000. The DRO fee is now free, making this option accessible to those who need it most. During the 12-month moratorium period, your debts and any interest are frozen. If your situation has not improved by the end of that period, the debts are written off entirely.

To qualify, your surplus income must not exceed £75 per month and your total assets must be worth less than £2,000.

Debt Consolidation Loan

A debt consolidation loan combines multiple debts into a single monthly payment, often at a lower interest rate. This works best if you have a reasonable credit score and can secure favourable terms. It simplifies your finances but does not reduce the total amount owed, so make sure the overall cost (including interest) is genuinely lower before committing.

Bankruptcy

If your debts are severe and other solutions are not suitable, bankruptcy may be an option. The application fee is £680, and once declared bankrupt, most of your unsecured debts are written off after 12 months. Bankruptcy does come with restrictions, including potential loss of assets and a significant impact on your credit file, so it should be considered carefully. Gov.uk has full details on the bankruptcy process.

Where to Get Free Debt Advice

Whatever your situation, free and impartial debt advice is available. StepChange offers a comprehensive online debt advice tool and phone support. MoneyHelper provides guides, calculators, and a debt advice locator. Citizens Advice can also help you understand your rights with utility suppliers and creditors.

If you would prefer to speak to a debt solutions company directly, Swift Debt Help can assess your situation and recommend the right option for your circumstances.

Get Help With Your Utility Bill Debt Today

Rising utility bills do not have to spiral into a debt crisis. Whether you need help negotiating with your supplier, setting up a payment plan, or exploring a formal debt solution like an IVA or DRO, support is available.

Contact Swift Debt Help for a free, no-obligation assessment. We will look at your income, spending, and debts to recommend the best path forward for you.

Swift Debt Help does not provide financial advice. The information on this page is for general guidance only and should not be treated as a recommendation. Always seek independent advice tailored to your personal circumstances.

How Can Spiralling Debt Affect Your Mental Health?

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

Updated for 2026

Debt and mental health are closely linked, and if you are struggling with money worries right now, you should know that you are far from alone. Research from the Money and Mental Health Policy Institute shows that people in problem debt are three times more likely to have thought about suicide in the past year. That is not a statistic to skim past. It is a serious reality for millions of people across the UK.

The cost of living squeeze that began in 2022 has not gone away. Energy bills, rent, groceries and council tax have all risen sharply, and many households are now using credit just to cover essentials. According to StepChange, over 6 million people in the UK are behind on at least one household bill. When you are in that position, it is easy to feel trapped, anxious and completely overwhelmed.

How Does Debt Affect Your Mental Health?

Living with unmanageable debt puts your body and mind under constant strain. It is not just about the numbers on a screen or the letters piling up on the doormat. Financial stress triggers a genuine physiological response: raised cortisol, disrupted sleep and a near permanent state of fight or flight.

The Mental Health Foundation reports that half of all adults with problem debt also experience a mental health condition. That includes anxiety, depression, panic attacks and in severe cases, suicidal thoughts. The relationship works both ways too. Poor mental health makes it harder to open letters, answer the phone or stick to a budget, which means the debt keeps growing.

Common signs that debt is affecting your mental health include:

Difficulty sleeping or waking up in the early hours worrying about money
Avoiding phone calls, post or bank statements
Feeling irritable, hopeless or withdrawn from family and friends
Losing interest in things you used to enjoy
Physical symptoms like headaches, chest tightness or stomach problems

If any of those feel familiar, please do not ignore them. Acknowledging the problem is the first step towards dealing with it.

The Debt and Mental Health Cycle

One of the cruellest aspects of debt is the way it feeds on itself. You fall behind on a payment, a late fee gets added, interest compounds and suddenly a manageable balance becomes something much bigger. The stress of watching that happen can paralyse you into doing nothing at all.

That paralysis is not laziness. It is a well documented psychological response. When your brain perceives a threat it cannot escape, it sometimes shuts down decision making entirely. The result is that bills go unopened, creditors are ignored and the situation worsens. This creates a vicious cycle: more debt leads to worse mental health, which leads to more avoidance, which leads to more debt.

Breaking that cycle usually requires outside help, and there is absolutely no shame in asking for it.

How Debt Stress Affects Your Relationships

Financial pressure does not just stay inside your own head. It spreads into your relationships, your work and your home life. Arguments about money are one of the most common causes of relationship breakdown in the UK. Partners may disagree about spending, blame each other for the situation or simply withdraw because they do not know what to say.

Parents dealing with debt often report feeling guilty about not being able to provide for their children. That guilt compounds the anxiety they are already feeling. Children can pick up on household tension too, even when adults try to shield them from it.

At work, the effects are just as damaging. Concentration drops, sick days increase and productivity falls. Some people lose their jobs entirely because they simply cannot function under the weight of financial stress, which of course makes the debt situation worse.

Where to Get Help With Debt in 2026

If you are reading this and recognising yourself, the most important thing to know is that help exists and most of it is free. You do not need to figure this out alone.

Individual Voluntary Arrangement (IVA)

An Individual Voluntary Arrangement is a legally binding agreement between you and your creditors. An Insolvency Practitioner sets up a realistic repayment plan, typically lasting five or six years. Once in place, your creditors must stick to it, interest and charges are frozen, and at the end of the term any remaining included debt is written off. An IVA can be a genuine lifeline if you owe more than you can realistically repay.

Debt Relief Order (DRO)

A Debt Relief Order is designed for people with relatively low levels of debt and limited assets. As of 2026, you can apply for a DRO if your total qualifying debt is under £50,000 and the application fee has been scrapped entirely, making it free to apply. Your debts are frozen for 12 months and then written off entirely if your circumstances have not improved. For many people, a DRO offers a genuine fresh start.

Debt Management Plan (DMP)

A Debt Management Plan is an informal agreement where a third party negotiates reduced payments with your creditors on your behalf. It is less rigid than an IVA and can be adjusted if your income changes. A DMP does not write off debt, but it does make repayments more manageable and takes the pressure of dealing with creditors off your shoulders.

Bankruptcy

If your debts are simply too large to repay, bankruptcy may be the right option. The current application fee is £680 and you can apply online through the GOV.UK website. Bankruptcy typically lasts 12 months, after which most debts are written off. It is a serious step with consequences for your credit file, but for some people it is the fastest route to a debt free life.

Free Mental Health Support

Alongside getting your finances sorted, looking after your mental health matters just as much. Here are some places you can turn to:

MoneyHelper: free, impartial debt and money guidance backed by the government
StepChange: the UK’s leading free debt charity, offering advice online and by phone
Mind: mental health support, including specific advice on coping with financial stress
Samaritans: available 24/7 on 116 123 if you need someone to talk to

You do not need to wait until things are at crisis point. Reaching out early gives you more options and a better chance of getting back on track before things escalate.

Practical Steps You Can Take Today

Getting out of debt does not happen overnight, but there are things you can do right now to start feeling more in control:

Write down everything you owe. Seeing the full picture, while uncomfortable, removes the fear of the unknown.
Check what you are entitled to. Use the GOV.UK benefits calculator to see if you are missing out on any support.
Open those letters. Nothing in an envelope can hurt you, but ignoring them can make things worse.
Speak to someone. Whether that is a debt adviser, your GP or a trusted friend, talking about it breaks the isolation.
Contact us for a free assessment. We can look at your situation and explain your options clearly, with no pressure and no judgement.

You Deserve to Feel Better

Debt does not define you. It is a situation, not a character flaw. People from every walk of life end up in financial difficulty, often through no fault of their own: redundancy, illness, relationship breakdown or simply the rising cost of living.

The link between debt and mental health is real and well documented, but it is not permanent. Getting the right debt solution in place can lift an enormous weight from your shoulders and let you start rebuilding both your finances and your wellbeing.

Get Free Debt Advice Today

If debt is affecting your mental health, Swift Debt Help can talk you through your options. Whether it is an IVA, DRO, DMP or bankruptcy, we will help you find the right solution for your circumstances. Your consultation is completely free and confidential.

Contact Swift Debt Help or call us to take the first step.

Disclaimer: This article is for general information only and does not constitute financial advice. Individual circumstances vary, and you should seek professional advice tailored to your situation before making any decisions about debt solutions.

Person looking at decreased credit score on laptop screen

5 Common Causes of a Decreased Credit Score

Written by Alex Swindells on March 16, 2026. Posted in Credit Score, Debt help.

Updated for 2026

5 Common Causes of a Decreased Credit Score

Your credit score affects almost every financial decision you make, from applying for a mortgage to getting a mobile phone contract. If your score has dropped recently, you are not alone. Millions of people across the UK see unexpected dips in their credit rating each year, and the reasons are not always obvious.

Understanding what causes your credit score to fall is the first step towards fixing it. In this guide, we look at five of the most common reasons your score might have decreased, and what you can do about each one.

What Is a Credit Score and How Is It Calculated?

A credit score is a number that represents how reliable you are as a borrower. In the UK, the three main credit reference agencies, Experian, Equifax, and TransUnion, each use their own scoring system. Experian scores range from 0 to 999, Equifax from 0 to 1,000, and TransUnion from 0 to 710.

These agencies collect data from banks, utility providers, mobile phone companies, and public records such as the electoral roll. They build a picture of your borrowing history, including how much credit you have, whether you pay on time, and how often you apply for new borrowing.

Lenders use this information to decide whether to offer you credit, and at what interest rate. A higher score generally means better deals and lower rates. A lower score can mean higher costs, or being turned down altogether.

You can check your credit report for free through services like MoneyHelper’s guide to checking your credit score. It is worth doing this regularly so you can spot problems early.

1. Using Too Much of Your Available Credit

Your credit utilisation ratio is the percentage of your total available credit that you are currently using. If you have a credit card with a £5,000 limit and you have spent £4,000 on it, your utilisation is 80%. That is high, and it sends a signal to lenders that you might be relying too heavily on borrowed money.

Most experts recommend keeping your utilisation below 30%. So on that £5,000 card, try to keep the balance under £1,500 where possible. If you regularly max out your cards, even if you pay them off each month, your score can still take a hit because the balance is often reported before your payment is processed.

On the other hand, using no credit at all can also work against you. Lenders want to see evidence that you can borrow responsibly. If your cards sit unused for months, there is no recent data to demonstrate good financial behaviour.

The key is balance. Use your credit regularly, keep balances low, and pay off as much as you can each month.

2. Missing or Late Payments

Your payment history is the single biggest factor in your credit score. Even one missed payment can leave a mark on your credit file for up to six years, and the impact is immediate. A payment that is 30 days late will trigger a default marker that lenders can see straight away.

If you have a high credit score, the drop from a missed payment can be especially sharp. Someone with a score of 900 might see a bigger numerical fall than someone already sitting at 500, because the models treat the missed payment as more unusual for someone with otherwise clean history.

Multiple missed payments are worse still. If you fall into arrears, where you owe several months of payments on an account, the damage to your score compounds over time. This can make it harder to access affordable credit when you need it most.

If you have missed a payment, the best thing you can do is get back on track as quickly as possible. Set up direct debits for at least the minimum payment on every account. If you are struggling to keep up with repayments, free debt advice is available from StepChange, who can help you work out a plan.

3. Paying Off a Loan or Closing an Account

This one catches people off guard. You would think that paying off a loan would be good for your score, and in the long run it often is. But in the short term, it can actually cause a dip.

Credit scoring models like to see a healthy mix of different credit types. If you have a mortgage, a credit card, and a personal loan, that diversity works in your favour. When you pay off the loan, you reduce that mix, and your score might drop slightly as a result.

Similarly, closing an old bank account or credit card can shorten the average age of your credit history. Older accounts show stability, so removing them can make your credit profile look younger and less established than it actually is.

Before closing old accounts, check whether they carry any annual fees. If an old credit card costs you nothing to keep open, it might be worth leaving it active, even if you rarely use it. Just make sure there are no forgotten balances ticking away in the background, as even a small unpaid amount can generate missed payment markers.

4. Applying for New Credit Too Often

Every time you apply for a credit card, loan, or other form of borrowing, the lender runs a hard search on your credit file. Each hard search is visible to other lenders and stays on your file for 12 months. One or two searches are not a problem, but several in a short space of time can make it look like you are desperate for credit, which is a red flag for lenders.

If you need to compare deals, look for lenders that offer eligibility checkers using soft searches first. A soft search lets you see whether you are likely to be accepted without leaving a mark on your credit file. Many comparison websites and lenders now offer this, so there is no reason to apply speculatively and risk multiple hard searches.

As a general rule, try to leave at least three to six months between credit applications. This gives your score time to recover from any recent searches and shows lenders that you are not applying everywhere at once.

5. Errors on Your Credit Report

Sometimes your credit score drops and you have done nothing wrong. Mistakes on credit reports are more common than you might think. An account that does not belong to you, a payment incorrectly marked as missed, or outdated address information can all drag your score down without you realising.

Under UK law, you have the right to dispute any inaccuracies on your credit report. The credit reference agency must investigate and correct any errors within 28 days. You can also add a “notice of correction” to your file, which is a short statement explaining any unusual circumstances, such as a period of illness that led to missed payments.

Check your report with all three agencies, as they do not always hold the same information. You can access your Experian report through their free service, your Equifax data through ClearScore, and your TransUnion report through Credit Karma. The gov.uk guidance on credit reference agencies explains your rights in more detail.

What to Do If Your Credit Score Keeps Falling

If you have checked all five of the causes above and your score is still dropping, it may be worth looking at the bigger picture. Persistent debt problems can create a cycle where missed payments and high utilisation feed off each other, making recovery harder over time.

There are formal debt solutions available in the UK that can help you regain control of your finances. A Debt Management Plan (DMP) lets you make reduced monthly payments to your creditors based on what you can afford. An Individual Voluntary Arrangement (IVA) is a legally binding agreement that can write off a portion of your unsecured debt after a set period, typically five or six years.

For smaller debts, a Debt Relief Order (DRO) may be an option if your total qualifying debts are under £50,000. The DRO application fee is now free, making it more accessible than ever. For larger debts where other options are not suitable, bankruptcy remains available, though the court fee of £680 still applies.

Each of these solutions will affect your credit score in different ways, and none of them should be entered into lightly. Free, impartial advice from organisations like StepChange or MoneyHelper can help you understand which option is right for your situation.

Get Free Debt Advice Today

If your credit score has dropped and debt is part of the problem, we can help you explore your options. Our team can talk you through the solutions available and help you find a way forward that works for your circumstances.

Disclaimer: This article is for general information purposes only and does not constitute financial advice. If you are struggling with debt, please seek advice from a qualified professional or contact a free debt charity such as StepChange or MoneyHelper.

Person comparing IVA and debt relief order paperwork at a kitchen table

IVA or Debt Relief Order: Which Is Right for You?

Written by Alex Swindells on March 16, 2026. Posted in IVA, Debt help.

Updated for 2026

If you are struggling with debt and looking for a way to get back on track, you have probably come across two common solutions: an Individual Voluntary Arrangement (IVA) and a Debt Relief Order (DRO). Both are formal, legally binding debt solutions available in England, Wales and Northern Ireland, but they work in very different ways. Choosing the right one depends on your circumstances, the amount you owe and what you can afford to pay each month.

This guide breaks down how each option works in 2026, who qualifies and the advantages and drawbacks of both, so you can make an informed decision about which route might suit your situation.

What Is an IVA?

An IVA is a formal agreement between you and your creditors, managed by a licensed Insolvency Practitioner (IP). Your IP assesses your income and essential outgoings, then proposes a monthly payment you can realistically afford. If your creditors holding 75% or more of the total debt value approve the arrangement, it becomes legally binding on all of them.

A typical IVA lasts five to six years. During that time, you make a single monthly payment that gets distributed among your creditors. At the end of the arrangement, any remaining debt included in the IVA is written off. You can include most unsecured debts: credit cards, personal loans, catalogue debts, overdrafts and some tax debts.

For more on how IVAs work in practice, StepChange has a detailed IVA guide worth reading.

What Is a Debt Relief Order?

A DRO is designed for people who owe relatively little, have minimal assets and no realistic way of repaying what they owe. When a DRO is granted, your debts and any interest are frozen for 12 months. If your situation has not significantly improved during that period, the debts are written off entirely.

As of 2026, the DRO debt threshold is £50,000, and the application fee has been scrapped completely, making it free to apply. You apply through an approved intermediary, usually a debt adviser at a charity like Citizens Advice or StepChange. The Insolvency Service then decides whether to grant the order.

The gov.uk guide on DROs sets out the full eligibility criteria.

IVA Eligibility: Who Can Apply?

To qualify for an IVA, you generally need to:

Owe at least £6,000 in unsecured debt (though some IPs set higher minimums)
Have two or more creditors
Be able to afford regular monthly payments after essential living costs
Live or have a connection to England, Wales or Northern Ireland

There is no upper debt limit for an IVA. Homeowners can apply, and business owners can continue trading while in an IVA, which makes it a flexible option for a wider range of people.

DRO Eligibility: Who Can Apply?

DRO criteria are stricter. To qualify in 2026, you must:

Owe no more than £50,000 in qualifying debt
Have assets worth no more than £2,000 (your car can be worth up to £4,000)
Have a surplus income of no more than £75 per month after essential costs
Not be a homeowner
Not have had a DRO in the last six years
Live in England, Wales or Northern Ireland

The application fee was removed in 2024, so there is now no cost to apply for a DRO. This makes it one of the most accessible debt solutions for people on very low incomes.

Advantages of an IVA

An IVA can be a strong option if you have a regular income and want to avoid bankruptcy. Here are the main benefits:

Any debt remaining at the end of the arrangement is written off
Your monthly payment is based on what you can genuinely afford
Creditors cannot chase you for payment or take legal action while the IVA is active
Interest and charges on included debts are frozen
Homeowners can protect their property (though equity release may be required in the final year)
Business owners can keep trading

Drawbacks of an IVA

An IVA is not without its downsides. You should be aware of these before committing:

It lasts five to six years, so it is a long commitment
If the IVA fails (for example, you miss payments), you could face bankruptcy
Your IVA is recorded on the Insolvency Register, which is public
It stays on your credit file for six years from the start date
Certain jobs, particularly in finance or law, may be affected
You must follow a strict budget throughout the arrangement
Homeowners may need to release equity from their property in year five

Advantages of a DRO

For people with very little income and few assets, a DRO offers a quick and affordable way to deal with debt:

It is completely free to apply
Debts are frozen for 12 months and then written off
Creditors cannot pursue you or take legal action during the DRO
There are no monthly payments to make
It is one of the fastest formal debt solutions available

Drawbacks of a DRO

A DRO comes with restrictions too:

You must meet strict eligibility criteria, including the £50,000 debt cap and £75 surplus income limit
Homeowners cannot apply
It appears on the Insolvency Register for 15 months
It stays on your credit file for six years
If your financial situation improves during the 12 months, the DRO can be revoked
You cannot apply for credit of £500 or more without telling the lender about the DRO

IVA vs DRO: a Quick Comparison

Here is a straightforward comparison to help you see the differences at a glance:

Monthly payments: IVA requires regular payments; DRO has no payments
Duration: IVA lasts five to six years; DRO lasts 12 months
Debt limit: IVA has no upper limit; DRO caps at £50,000
Cost to apply: IVA fees are included in payments; DRO is free
Homeowners: IVA allows homeowners; DRO does not
Credit impact: both stay on your credit file for six years

Which One Is Right for You?

The right choice depends entirely on your personal circumstances. If you have a steady income and can afford to make monthly payments, an IVA lets you pay back what you can afford and have the rest written off over time. It is particularly suitable if you own your home or run a business.

If your income is very low, you have minimal assets and your debts are under £50,000, a DRO could clear your debts in just 12 months with no cost and no monthly payments. It is designed specifically for people who genuinely cannot afford to repay what they owe.

Neither option should be entered into lightly. Both affect your credit rating for six years and appear on public registers. It is always worth speaking to a qualified debt adviser before making a decision. You can get free, impartial advice from MoneyHelper or StepChange.

Get Free Debt Advice Today

If you are unsure whether an IVA or DRO is the right fit, we can help point you in the right direction. Use our free eligibility checker below, or request a call back from one of our friendly advisers. There is no obligation and no judgement, just straightforward guidance to help you take the next step.

Check your options now

Swift Debt Help does not provide financial advice. The information on this page is for general guidance only. Debt solutions may not be suitable for everyone, and fees may apply depending on the solution. Your credit rating may be affected. Always seek advice from a qualified professional before entering into any debt solution.

Person feeling relieved after learning about IVA protection in the UK

What Protection Does an IVA Offer? Your 2026 Guide

Written by Alex Swindells on March 16, 2026. Posted in IVA.

Updated for 2026

If you are struggling with unmanageable debt, an Individual Voluntary Arrangement (IVA) could give you the legal protection you need to get your finances back on track. An IVA is a formal, legally binding agreement between you and your creditors, set up through a licensed Insolvency Practitioner (IP). It allows you to repay a portion of what you owe over a fixed period, typically five or six years, based on what you can genuinely afford.

But beyond the repayment structure, an IVA offers several layers of protection that many people are not aware of. This guide breaks down exactly how an IVA shields you from further financial pressure in 2026.

Your debts are frozen: no more interest or charges

One of the biggest advantages of an IVA is that, once your creditors approve the arrangement, they cannot add interest, late payment fees or any other charges to your included debts. This means the total amount you owe will not increase for the duration of the IVA.

Without this protection, debts can spiral quickly. Credit card interest alone can add hundreds of pounds each year. With an IVA in place, you know exactly what you owe and exactly what you will pay each month, giving you a clear path forward.

If you are unsure whether your debts qualify, take a look at our guide on what debts can be included in an IVA.

Your home and assets are protected

A common worry for people considering debt solutions is whether they will lose their home. With an IVA, the answer is generally no. Unlike bankruptcy, an IVA does not require you to sell your property unless you voluntarily offer it as part of your proposal.

Once the IVA is approved, your unsecured creditors are legally prevented from taking further enforcement action. That means they cannot:

Apply for a County Court Judgement (CCJ) against you
Instruct bailiffs to seize your belongings
Force the sale of your home
Make deductions directly from your wages (known as an attachment of earnings)

Your car, household items and personal possessions are also typically safe, provided they are not luxury or high-value assets that fall outside reasonable living needs.

Legal protection from creditor action

Perhaps the most powerful aspect of an IVA is the legal protection it provides. Once 75% of your creditors (by debt value) vote in favour of the arrangement, it becomes binding on all of them, even those who voted against it.

This means creditors must stop all collection activity. No more threatening letters, no phone calls demanding payment, and no legal proceedings. If a creditor does attempt to take action against you while your IVA is active, your Insolvency Practitioner can step in on your behalf.

For more information on the legal framework, the GOV.UK guide to IVAs explains how the process works under the Insolvency Act 1986.

Protection from bailiffs

Bailiff visits are one of the most stressful experiences for anyone dealing with debt. Once your IVA is in place, creditors included in the arrangement cannot instruct bailiffs to visit your home or seize your property.

There is one thing to be aware of: it typically takes around four to six weeks for an IVA to be formally approved. During this interim period, you could still be contacted by debt collectors. If this happens, let them know you are in the process of setting up an IVA and provide your Insolvency Practitioner’s details. Most creditors will pause collection activity once they are aware an IVA proposal is underway.

It is worth noting that an IVA only covers unsecured debts. Secured debts such as your mortgage, and certain priority debts like council tax arrears or TV licence fines, are not included. You can find free guidance on dealing with all types of debt through StepChange, one of the UK’s leading debt charities.

Flexibility if your circumstances change

Life does not stand still for five years, and the IVA process accounts for that. If your income drops due to redundancy, illness or a change in family circumstances, your Insolvency Practitioner can adjust your payments accordingly.

Minor changes can usually be handled through a simple payment reduction, sometimes called a payment break. For more significant changes, your IP may arrange a Variation Meeting where a revised proposal is put to your creditors for approval.

This built-in flexibility is one of the reasons many people choose an IVA over other debt solutions. You will not be locked into payments you cannot afford, and the arrangement adapts to your real life situation rather than forcing you into a rigid schedule.

You only pay what you can afford

Before your IVA begins, your Insolvency Practitioner carries out a detailed review of your income and essential outgoings. This includes rent or mortgage payments, utility bills, food, travel costs and other necessary expenses. Only the money left over after these essentials is allocated towards your IVA payments.

Your IVA is reviewed annually, so if your income increases or your costs go up, your payments can be adjusted. The goal is always to ensure you can meet your obligations without falling into further hardship.

Once you have completed all your IVA payments, any remaining unsecured debt included in the arrangement is written off. For many people, this can mean thousands of pounds of debt cleared entirely.

How does an IVA compare to other debt solutions?

An IVA is not the only option available. Depending on your situation, you might also consider:

A Debt Relief Order (DRO), suitable if you owe less than £50,000 and have limited assets. As of 2026, there is no fee to apply for a DRO.
Bankruptcy, which may be appropriate for larger debts but can involve selling assets. The current bankruptcy petition fee is £680.
A Debt Management Plan (DMP), an informal arrangement with lower legal protection than an IVA.

Each option has different eligibility requirements and consequences. You can explore the differences further with MoneyHelper’s debt solutions tool, which provides free, impartial guidance.

If you are weighing up IVA against bankruptcy specifically, our detailed comparison of IVA vs bankruptcy breaks down the key differences.

Will an IVA affect your credit rating?

Yes, an IVA will be recorded on your credit file for the duration of the arrangement, plus an additional 12 months after completion. It will also appear on the Individual Insolvency Register, which is a public record.

This can make it harder to obtain credit during and immediately after your IVA. However, once the IVA is completed and your credit file is updated, you can start rebuilding your score. Many people find they are able to access credit again within a year or two of completing their arrangement. Our guide on how to improve your credit score after an IVA has practical steps to help you recover.

Is an IVA right for you?

An IVA works best for people who have a regular income and owe a significant amount of unsecured debt, typically £6,000 or more to two or more creditors. It offers strong legal protection, freezes your debts, and provides a structured, affordable path to becoming debt free.

If you are ready to explore whether an IVA is the right fit for your situation, you can apply for an IVA online or get in touch with us for a free, no-obligation assessment.

Important: The information on this page is for general guidance only and does not constitute financial advice. If you are unsure about the best course of action for your situation, we recommend speaking to a qualified debt adviser or contacting a free service such as StepChange or MoneyHelper.

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.

Get Help Today

Person celebrating the end of their IVA at a home desk with financial documents

5 Helpful Things To Consider When Your IVA Ends

Written by Alex Swindells on March 15, 2026. Posted in Debt help, IVA.

Updated for 2026

When your IVA ends, it marks the start of a fresh financial chapter. After completing an Individual Voluntary Arrangement (IVA), your Insolvency Practitioner will confirm that all payments have been made and issue you with a completion certificate. You are now debt free and can move forward with a clean slate. That said, an IVA does leave a lasting mark on your credit file, so there are a few practical steps worth taking to protect your finances going forward. Here are five helpful things to consider when your IVA ends.

Please note: this article is for general information only and does not constitute financial advice. If you are unsure about your situation, seek guidance from a qualified professional.

1. Keep budgeting after your IVA ends

The habits you built during your IVA are genuinely valuable. You have spent years living within a strict budget, and that discipline is worth holding onto now that your arrangement has finished.

Rather than letting your spending creep back up, keep tracking your income and outgoings each month. The money that was going towards your IVA payments can now be redirected into savings or an emergency fund. Building that financial buffer means you are far less likely to end up dealing with problem debt again.

If budgeting feels like a chore, there are plenty of free apps and tools available in 2026 that make it simple to keep on top of your money.

2. Open a savings account or ISA

Now that you are more financially stable, putting money aside for the future makes sense. A high-interest savings account or an ISA is a good place to start.

The main benefit of an ISA is that you will not pay tax on the interest you earn. For the 2025/26 tax year, the annual ISA allowance remains at £20,000. However, there are different types of ISA, and some restrict access to your funds for a set period, so make sure the account you choose suits your needs.

A standard easy-access savings account offers more flexibility if you want to keep your money within reach. Either way, getting into the habit of saving regularly, even small amounts, builds long-term financial resilience.

3. Use credit responsibly to rebuild your score

It might feel counterintuitive, but using credit responsibly after your IVA is one of the most effective ways to rebuild your credit score. The key word here is “responsibly”.

You may not qualify for the best interest rates straight away, but a credit-builder card used for small, regular purchases (paid off in full each month) shows lenders you can manage repayments reliably. Over time, this steady track record helps push your credit score upwards.

If you are comparing your options and wondering whether an IVA was the right choice, you might find our guide on IVA vs bankruptcy useful for context.

4. Monitor your credit report closely

Keeping a close eye on your credit report after your IVA ends is important. It helps you spot errors, track improvements, and make sure everything has been updated correctly.

The three main credit reference agencies in the UK are:

You can check your credit report for free through services like ClearScore, Credit Karma, or directly via the agencies themselves. There is no need to pay for a subscription just to see your score.

Once your IVA is completed, your details will be removed from the Individual Insolvency Register after three months. The IVA itself stays on your credit file for six years from the start date of the arrangement. If that period has passed and it still appears, contact the credit agency with your completion certificate and ask them to remove it.

Also check that debts settled through the IVA are marked as satisfied. Errors are more common than you might think, and they can drag your score down unnecessarily. For more tips on boosting your rating, take a look at our guide to improving your credit score.

5. Register to vote

If you are not already on the electoral register, this is one of the quickest and easiest things you can do to give your credit score a boost. When you register to vote, your name and address are verified and recorded, which makes it easier for credit agencies to confirm your identity.

It will not fix your credit overnight, but it is a simple step that takes about five minutes. You can register to vote online here.

Thinking about what comes next?

Life after an IVA opens up options that may not have been available before. If you are thinking about getting on the property ladder, our guide on getting a mortgage after an IVA covers what you need to know.

If you still have questions about what happens when your IVA ends, or you are struggling with debt and wondering whether an IVA could be the right solution, we can help. At Swift Debt Help, we have years of experience helping people across the UK find the right path out of debt. Get in touch today and a member of our team will answer your questions.

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.

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.

Get Help Today

How to Improve Your Credit Score After an IVA

Written by Alex Swindells on March 15, 2026. Posted in Debt help, IVA.

Updated for 2026

If you have recently completed an Individual Voluntary Arrangement (IVA), you may be wondering how to improve your credit score after an IVA. The good news is that with patience and the right approach, you can rebuild your financial standing and access credit again.

How Long Does an IVA Stay on Your Credit Report?

An IVA remains on your credit report for six years from the date it was registered. Once that period ends, it is removed automatically. Your entry on the Insolvency Register will also be cleared, which is a significant step towards a fresh start.

Keep in mind that it can take a few weeks for the records to update across all three credit reference agencies (Experian, Equifax and TransUnion). If you notice the IVA still showing after six years, contact the agency directly with a copy of your IVA completion certificate and they will correct the record.

Confirm Your IVA Is Fully Completed

Before you focus on rebuilding, make sure your IVA has been formally completed by your Insolvency Practitioner. They will confirm that all required monthly payments were made on time. If any payments were missed, the arrangement may have been extended. Once everything is settled, you will receive a completion certificate.

If you were asked to remortgage your home as part of the IVA terms, ensure that has also been resolved before you consider the arrangement complete.

Steps to Improve Your Credit Score After an IVA

1. Check your credit report for errors

Request a copy of your credit report from all three agencies. Look for any debts that were included in the IVA but are still showing as outstanding. These should be marked as “satisfied” or removed entirely. Errors like this can drag your score down unnecessarily.

2. Register on the electoral roll

Being registered at your current address gives your credit score an immediate boost. Lenders use the electoral roll to verify your identity and address, so this is one of the quickest wins available.

3. Pay all bills on time, every time

Your payment history is one of the biggest factors in your credit score. Set up direct debits for household bills, mobile phone contracts and any other regular payments. Even a single missed payment can set you back significantly.

4. Use a credit builder card responsibly

A credit builder card is designed for people with poor or limited credit history. Spend a small amount each month and pay the balance in full. This demonstrates to lenders that you can manage credit responsibly. Avoid carrying a balance, as the interest rates on these cards tend to be high.

5. Keep your credit utilisation low

If you do have access to credit, try to use no more than 25% of your available limit. High utilisation signals to lenders that you may be relying on credit to get by, which can hurt your score.

6. Avoid multiple credit applications

Each application leaves a “hard search” on your credit file. Too many in a short space of time can make you look desperate for credit. Space out any applications and use eligibility checkers (which only perform a soft search) before applying.

7. Build a savings habit

While savings do not directly affect your credit score, having a financial cushion reduces the risk of falling back into debt. During your IVA you will have grown used to living within a budget, so try to maintain that discipline and put aside what you can each month.

How Long Does It Take to Rebuild Your Credit After an IVA?

There is no fixed timeline. Some people see noticeable improvements within 12 months of their IVA ending, while for others it can take two to three years to reach a “good” credit score. The key is consistency: keep up with payments, avoid unnecessary debt and be patient.

What If an IVA Was Not the Right Option?

If you are still struggling with debt or an IVA was not suitable for your situation, there are other solutions worth exploring. A Debt Relief Order (DRO) is now available for debts up to £50,000 and the application fee has been removed entirely since April 2024, making it free to apply. Bankruptcy is another option, with the current application fee at £680. Each solution suits different circumstances, so it is important to get proper advice before making a decision.

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.

Get Help Today

Person reviewing IVA debt solution paperwork at kitchen table

5 Scenarios Where an IVA Could Be the Best Solution

Written by Alex Swindells on March 15, 2026. Posted in Debt help, IVA.

Updated for 2026

If you are struggling with debt and wondering whether an IVA (Individual Voluntary Arrangement) is right for you, it helps to understand the situations where this solution works best. An IVA allows you to make affordable monthly payments towards your debts over a fixed period, typically five or six years. Any remaining unsecured debt included in the arrangement is written off once you complete it.

This guide covers five common scenarios where an IVA could be the most suitable debt solution for your circumstances.

1. You owe debts to multiple creditors

An IVA is particularly well suited if you owe money to several different lenders. When you only have a single creditor, it is usually simpler to contact them directly and negotiate a repayment plan. A single debt is far easier to manage, and you can often reach an informal agreement without entering a formal insolvency solution.

However, juggling repayments to multiple creditors is where things get complicated. Keeping track of different payment dates, amounts and interest rates is stressful, and this is often how people lose control of their finances. With an IVA, you make one single monthly payment to your Insolvency Practitioner, who then distributes the funds to your creditors on your behalf. This simplifies everything and can result in a portion of your qualifying unsecured debts being written off at the end.

2. You can afford regular monthly repayments

Before entering an IVA, a licensed Insolvency Practitioner will carry out a thorough assessment of your finances. They will review your income and essential living costs to work out what you can realistically afford to pay each month.

If you have a steady source of income and are confident you can maintain the agreed repayments for the duration of the arrangement, an IVA is a strong option. Both you and the Insolvency Practitioner need to be satisfied that the plan is sustainable over the full term. If your income is irregular or unpredictable, you may want to explore whether a self-employed IVA structure could work for you.

3. You owe more than £6,000 in unsecured debt

An IVA is designed for people who cannot realistically repay their unsecured debts within a reasonable timeframe. If you owe a relatively small amount, improved budgeting or an informal arrangement with your creditors might be enough to get things under control.

For debts above £6,000, the picture changes. Fees are built into the IVA and come out of your affordable monthly payment, so creditors are unlikely to agree to an arrangement where you could potentially repay them in full over a similar period without those fees. If you are unsure whether you meet the threshold, our guide on how much debt you need for an IVA explains the eligibility criteria in more detail.

For those with lower levels of debt, a Debt Relief Order (DRO) may be more appropriate. Since April 2024, the DRO debt threshold has increased to £50,000 and the application fee has been removed entirely, making it accessible to more people than ever before.

4. Your employment allows it

In most cases, an IVA will not affect your job. You can continue working as normal throughout the arrangement. However, certain professions have restrictions around formal insolvency solutions.

Jobs that typically do not allow you to hold an IVA include roles in:

Accountancy
Financial services
Law
The police or military

Some employers in other industries may also have policies around insolvency. It is always worth checking your employment contract or speaking confidentially with your employer before proceeding. There are also common myths about IVAs that can cause unnecessary worry, so it is worth separating fact from fiction.

5. You want protection from creditor contact

One of the biggest sources of stress when you are in debt is the constant phone calls, letters and emails from creditors chasing payment. This pressure can take a serious toll on your mental health and often stops people from dealing with their debts at all.

An IVA provides legal protection from your creditors. Once the arrangement is in place, they are no longer permitted to contact you for payment. Your Insolvency Practitioner handles all communication and negotiation on your behalf. They draft the proposal, present it to your creditors, handle any disputes and distribute your monthly payments.

If dealing with creditors is causing you significant stress, an IVA removes that burden completely and gives you the breathing space to focus on getting back on track financially.

What other options are available?

An IVA is not the only debt solution out there. Depending on your situation, you might also consider bankruptcy (which currently costs £680 to apply for), a debt consolidation loan, or a Debt Relief Order. Each option has different eligibility requirements, so it is important to understand the pros and cons before making a decision.

If you need guidance on whether an IVA is right for you, get in touch with Swift Debt Help today and speak to a member of our team. We can help you understand your options and find the right path forward.

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

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.

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.

Get Help Today

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 March 15, 2026. 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

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

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

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.

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.

Get Help Today