There isn't one right answer — the best solution depends on your income, your debts and what matters to you. Here's what the main UK options actually mean.
An informal agreement to pay your debts back at a reduced, affordable monthly amount over a longer period.
A legally binding agreement with your creditors to pay what you can afford, usually over five to six years. Any remaining debt is written off at the end.
A low-cost option for people on low incomes with limited assets and up to £50,000 of unsecured debt.
A formal Scottish alternative to bankruptcy, typically lasting four years, that ring-fences your assets and stops creditor pressure.
A formal legal process to clear debts you can't repay. Serious, but sometimes the fastest route to a fresh start.
A 60-day pause on creditor action, contact and most interest while you take stock and get proper advice.
Small, symbolic monthly payments (often £1) offered to creditors when you genuinely can't afford more, to keep engagement while you plan next steps.
A one-off lump sum offered to a creditor to settle a debt for less than the full balance — closing the account entirely if accepted in writing.
A quick snapshot of how each option stacks up. For the detail, open the full guide.
| Solution | Region | Duration | Debt written off? | Credit impact | Type |
|---|---|---|---|---|---|
| Debt Management Plan | UK-wide | Flexible | No | Moderate | Informal |
| IVA | Eng, Wal, NI | 5–6 years | Yes (remainder) | 6 years | Formal |
| Debt Relief Order | Eng, Wal, NI | 12 months | Yes (after 12m) | 6 years | Formal |
| Bankruptcy | UK-wide | ~12 months | Yes | 6 years | Formal |
| Breathing Space | Eng, Wal | 60 days | No | Low | Temporary |
| Token Payments | UK-wide | Short-term | No | Moderate | Informal |
| Full & Final Settlement | UK-wide | One-off | Partial | Moderate–High | Informal |
A quick, confidential chat with a friendly advisor. No pressure, no jargon — just a clear picture of the options that suit your situation.