- Step one
- Stop adding to the debt and list what you owe
- Step two
- Build a realistic budget
- Step three
- Choose the right route, with free advice
- Timescales
- From months to several years, depending on the route
On this page
Step 1: stop making it worse
Avoid new borrowing wherever you can, and do not use one credit product to pay another. Open your post, keep every letter and do not ignore court papers.
Step 2: list every debt
For each debt, write down who you owe, the amount, the interest rate, the monthly payment and whether it is a priority debt. Check your credit reports to find any you have forgotten. See our guide to credit scores.
Talk to a free adviser first
An adviser can look at your whole budget, deal with creditors for you and explain which option suits you. Get free debt advice.
Step 3: build a budget
Work out your income and essential spending to see what you can afford to pay. Our budgeting guide explains how. Pay priority debts first, then share what is left fairly between the others.
Step 4: choose a route
| Route | Suits | Typical length |
|---|---|---|
| Repay yourself | You have spare income and can clear debts in a few years | Varies |
| Debt management plan | Steady income, want flexibility | Until repaid |
| IVA | Larger debts and a regular surplus | Usually 5 to 6 years |
| Debt relief order | Low income, few assets, smaller debts | 12 months |
| Bankruptcy | Debts you cannot realistically repay | Usually 12 months |
Scotland has its own options, including trust deeds and the Debt Arrangement Scheme. Eligibility rules and limits change, so check with an adviser.
If you can pay the debts yourself
- Avalanche: pay the minimum on everything, and put any extra towards the debt with the highest interest rate. It costs least overall.
- Snowball: put extra towards the smallest balance first. It can feel more motivating.
- Ask about a lower rate or a 0% balance transfer, but check fees and what happens when the offer ends.
Step 5: get free advice
A free adviser can check your figures, tell you which option suits you and speak to creditors. StepChange, National Debtline, Citizens Advice and MoneyHelper are free. Breathing Space gives 60 days of protection while you sort this out. If your mental health is suffering, see debt and mental health.
Step 6: stay out of debt
- Keep your budget going and review it every month.
- Build a small emergency fund.
- Rebuild your credit record slowly by paying everything on time.
- Use credit sparingly. See how to avoid debt.
Frequently asked questions
How long does it take to get out of debt?
It depends on how much you owe and what you can pay. A debt relief order lasts 12 months, an IVA typically five or six years, and a debt management plan runs until the debt is repaid.
Should I pay off the smallest or the biggest debt first?
Paying the highest-interest debt first saves the most money, and paying the smallest first can be more motivating. Either works if you stick to it.
Can I get debts written off?
Formal solutions such as an IVA, debt relief order or bankruptcy can write off eligible debts. Debt management plans do not.
Will getting out of debt hurt my credit?
Formal solutions are recorded on your credit file for six years, but a clean record afterwards helps you recover. Staying in unmanaged debt usually does more damage.
Where do I start?
Open your post, list your debts and speak to a free adviser. Doing those three things usually brings relief.
This guide gives general information and is not personal advice. Rules and limits change, so check with a free adviser before acting. Last reviewed 11 November 2026.