Feeling overwhelmed by debt? You’re not alone!

When you’re in financial trouble, knowing where to turn or what steps to take can be confusing. There are lots of different debt solutions, and it’s not always clear which one is right for your situation.

At The Debt Advice Service (TDAS), we’re here to help you make sense of your options. Whether you’re looking for a formal plan to manage your debts or need free support to get back on track, this guide will help you decide which option is right.

Formal Debt Solutions

When debt becomes too hard to manage, a formal solution can help you take back control. These debt solutions are structured ways to deal with what you owe. Some are legally binding, which means your creditors must stick to the terms. Others are more flexible. Either way, the goal is the same: to give you a clear path to being debt-free.

Debt Relief Order (DRO)

A Debt Relief Order is a simple, low-cost way to deal with debts if you have a low income and very few assets.

It’s a formal process that pauses payments and interest on your debts for 12 months. If your situation hasn’t improved after that time, your debts are written off. That means you no longer have to pay them.

To qualify, you must:

• Owe less than a set amount (currently £50,000 in England, Wales, and Northern Ireland)
• Have little spare income
• Own few or no valuable assets

DROs are often called the “mini-bankruptcy,” but they don’t carry the same costs or consequences. TDAS can help you check if you meet the criteria and guide you through the application.

Debt Management Plan (DMP)

A Debt Management Plan is an informal agreement between you and your creditors to repay your debts at a rate you can afford.

You make one monthly payment, and the money is split between the people you owe. There’s no court process, and it won’t appear on the public record. But because it’s not legally binding, your creditors don’t have to freeze interest or stop charges, although many will.

A DMP might be the right solution for your debt if:

• You can pay something towards your debts, but not the full amount
• You want a flexible option
• You’re dealing with non-priority debts like credit cards, store cards, or personal loans

Individual Voluntary Arrangement (IVA)

An IVA is a legally binding agreement that helps you pay back a portion of your debt over a fixed period, usually five or six years.

You make affordable monthly payments based on your income. At the end of the term, any remaining debt is written off.

This is one of the most common verified debt solutions in the UK. It offers protection from creditors, freezes interest, and stops legal action, but it’s not suitable for everyone.

An IVA may be right for you if:

• You owe at least £6,000 to two or more creditors
• You have a steady income
• You want a formal solution that avoids bankruptcy

Bankruptcy

Bankruptcy is often seen as a last resort, but in some cases, it’s the fastest way to clear debts and start over.

When you go bankrupt, most of your debts are written off, and creditors must stop all contact. You might have to sell valuable assets and make payments for up to three years if you can afford to. Bankruptcy usually lasts for 12 months.

It’s a serious step and can affect your job, home, and credit rating. But it can also bring relief if you’re overwhelmed and unable to pay anything towards your debts.

TDAS won’t push you toward bankruptcy, but we can help you understand if it’s the most suitable debt solution for your situation, and whether there are better options to try first.

Debt Solutions in Scotland

If you live in Scotland, the rules around debt solutions are different to England and Wales but help is still available. Scottish residents have access to formal arrangements that work much like IVAs and DMPs but are designed around Scotland’s legal system.

Protected Trust Deed

A Protected Trust Deed is the Scottish version of an IVA. It’s a legally binding agreement that allows you to pay back what you can afford over four years. After that, any unpaid debt is written off.

This debt solution protects you from legal action and stops creditors from contacting you directly. You’ll make regular monthly payments, based on your income, through a licensed insolvency practitioner.

A Protected Trust Deed may be a good fit for you if:

• You owe over £5,000
• You have some income left after paying essentials
• You’re unable to repay your debts in full

Debt Arrangement Scheme (DAS)

The Debt Arrangement Scheme is a government-backed debt repayment plan available in Scotland. It lets you repay your debts in full over time through a single monthly payment.

Unlike a Trust Deed or IVA, the DAS doesn’t write off any of your debt. But it does freeze interest and charges, and it protects you from court action as long as you keep up with payments.

You might choose a DAS if:

• You want to repay your debts in full, but need more time
• You want legal protection from creditors
• You have enough income to make consistent payments

Free Debt Solutions from TDAS

Not every debt problem needs a formal plan. In many cases, the right information and support can make a huge difference. That’s where free debt solutions come in.

These options won’t stop interest or legal action like formal plans can, but they’re still great tools to help you start better managing your debt. Whether you’re just starting to feel the pressure or trying to avoid things getting worse, TDAS is here to help.

Budgeting Help

When you’re in debt, it’s easy to feel like money is running out faster than you can keep up. That’s where budgeting can help.

Our advisers can work with you to build a realistic plan based on what you earn and what you spend. We’ll help you:

• Understand where your money’s going
• Prioritise essential bills like rent, food, and utilities
• Free up cash to put toward your debts

Sometimes, getting a better handle on your budget is the first step toward finding the right debt solution. TDAS offers tools, templates, and one-on-one support to help make it easier.

Debt Advice and Support

Talking about money can be hard. But with TDAS, you don’t have to go through it alone.

Our trained advisers offer free, confidential support to help you understand your options. We’ll never push you toward a decision or charge you for advice. We’re here to listen and guide you toward the debt solutions that suit your circumstances.

Whether you need a formal plan or just someone to explain the basics, we’ll make sure you get the right help.

This kind of verified debt solution—one that starts with honest advice—is often the most important step of all.

Information You Can Trust

There’s a lot of debt advice online, but not all of it is accurate or helpful.

At TDAS, we explain your rights in plain English. We’ll help you understand how creditors work, what happens if you miss payments, and what to do if things get worse. We’ll also show you how to:

• Speak to lenders
• Avoid scams
• Handle legal letters

Knowledge is power. And when it comes to managing debt, knowing your options can make a huge difference.