A formal agreement, run by a licensed insolvency practitioner, to pay what you can afford towards your unsecured debts. Creditors holding at least 75% of the debt by value must vote to accept it.

• Interest and charges usually stop and creditors cannot chase you once it is approved.
• Fees are taken from your payments, so ask for them in writing before you sign.
• Missing payments can cause it to fail, which brings creditor action back.

An informal arrangement where you make one monthly payment that is shared between creditors. It is flexible, but it is not legally binding. Read the full guide.

A low-cost route for people with small debts, little spare income and few assets. Debts are frozen for 12 months and are usually written off if your circumstances stay the same.

• You apply through an approved intermediary, such as a debt advice charity.
• Limits on debt, income and assets apply and are updated from time to time.

A court process that clears most debts, usually after 12 months. It is the most far-reaching option, so it is worth discussing with an adviser first.

• Valuable assets, and sometimes home equity, can be used to pay creditors.
• Some jobs and roles carry restrictions while you are bankrupt.

A government scheme that gives you 60 days free from interest, charges and most enforcement while you get advice. A longer version exists for people receiving mental health crisis treatment. You apply through a debt adviser.

Scotland has its own system. Alongside protected trust deeds and the Debt Arrangement Scheme, there are sequestration (Scotland’s bankruptcy) and the Minimal Asset Process for people with very little income and few assets.

Borrowing one larger loan to clear several debts. It only helps if the new rate and term are genuinely better, and secured loans put your home at risk. Be cautious if you were offered the loan after missing payments.