Getting on top of debt

Lots of people owe money, and it can be sorted. Start with a clear picture of what you owe, deal with the most urgent bills first, and get free help early.

By Menelik Williams · Updated 6 Nov 2026 · 8 min read

Four steps to take back control

  1. List what you oweEvery debt, how much is left and what you pay each month. It's easier to face once it's written down.Use the list below
  2. Pay priority bills firstRent, council tax and energy come before cards and loans, because missing them has bigger consequences.Which are priority?
  3. Build a budgetSee what comes in, what goes out and what you can realistically put towards debts each month.Open the budget planner
  4. Get free advice earlyAn adviser can deal with creditors for you, freeze interest and find options. The sooner, the more choices you have.Find free help

List what you owe

Add each debt and its monthly payment. Nothing leaves your device unless you add it to your budget.

Priority debts are ones with serious consequences if unpaid, like rent, council tax or energy. Which are priority?

Your list is empty. Add your first debt above, or try an example to see how it works.

Know which debts come first

Some debts can lead to losing your home, your energy supply, or even court. Pay these first, even if it means paying less on others for a while.

Priority debts

  • Rent or mortgage
  • Council tax
  • Gas and electricity
  • Court fines
  • Child maintenance
  • TV licence
  • Income tax or VAT owed

Other debts

  • Credit and store cards
  • Overdrafts
  • Personal loans
  • Catalogue and buy now pay later
  • Phone and broadband
  • Money owed to friends or family

Paying down the rest

Once priority bills are covered, keep up the minimum on everything and put anything extra towards one debt at a time. Two popular ways to choose which:

Highest interest first

Usually costs least overall, because the most expensive debt shrinks fastest.

Smallest balance first

Clears whole debts sooner, and those quick wins can help you keep going.

If you can't keep up

There are formal options that can pause, reduce or write off what you owe. A free adviser will tell you which, if any, fits. You don't have to work it out alone.

Breathing SpaceUp to 60 days' pause

Pauses most enforcement action and contact from creditors, and freezes interest and charges, for up to 60 days while you get advice. You still need to make payments if you can. A debt adviser applies for you. There is a longer version for people getting mental health crisis treatment.

Debt management planOne affordable monthly payment

An informal agreement where you pay what you can afford, split between creditors. Free providers can set one up. Creditors don't have to agree to freeze interest, and the plan can take a long time.

Debt Relief OrderFor smaller debts and little money left each month

Can write off debts after 12 months if you owe under £50,000, have under £2,000 in savings and valuables, a vehicle worth under £4,000, and less than £75 a month left after essentials. There's no fee, and you must apply through an approved adviser.

Individual voluntary arrangementA formal, legally binding plan

A formal agreement to pay part of what you owe over a set time, usually five or six years, with the rest written off. It's set up by an insolvency practitioner, can involve fees, and affects your credit file.

BankruptcyA last resort

Can clear most debts, but you may lose assets, including your home, and it can affect some jobs. Get free advice before considering it.

These options are for England and Wales. Scotland and Northern Ireland have their own schemes, and an adviser can explain them.

Watch out for

Fees for help. Free advice is available. Firms that charge upfront or take a cut of your payments can leave you worse off.

Loan sharks. Unlicensed lenders can charge huge interest and use threats. If someone lends without paperwork, report them.

Borrowing to pay borrowing. A consolidation loan only helps if it's cheaper and you stop using the cards. Get advice first.

Talk about it

Debt is easier to deal with out in the open. Telling someone you trust can take some of the weight off, and they may help you spot options. If money worries are affecting how you feel, speak to your GP, or call Samaritans free on 116 123, any time.

The first step: see where your money goes

Add your income and bills to the budget planner. It shows what you can afford to put towards debts each month, and what an adviser will ask for.

Start your free budget

General information, not debt or financial advice. AltPath isn't a debt advice provider. For advice on your situation, contact one of the free services above.