I Cannot Pay My Debts
If your debts feel unmanageable, you are not alone and you are not without options. Acting promptly and in the right order gives you the best chance of finding a way through. Here is where to start.
Estimated timeline
List all your debts — who you owe, how much, whether you are in arrears, and the interest rate on each. Include credit cards, loans, overdrafts, buy-now-pay-later, rent arrears, council tax, energy bills, and any fines. You cannot make a plan without a clear picture of your total debt.
Priority debts are those where non-payment can have the most serious consequences: mortgage or rent arrears (eviction), council tax (bailiffs and imprisonment), energy bills (disconnection), court fines (imprisonment), and child maintenance. These must be dealt with first — regardless of which creditor contacts you most. Non-priority debts like credit cards and personal loans, while serious, carry fewer immediate consequences.
Contact your creditors
Contact your creditors — both priority and non-priority — to let them know you are struggling. Many creditors have hardship teams and are required under FCA rules to treat customers in financial difficulty fairly. You can often arrange a payment pause, reduced payments, or a token payment plan. Always get any agreement in writing.
Contact a free debt advice service: Citizens Advice, StepChange, National Debtline, or PayPlan. They will help you complete a financial statement (income and expenditure), prioritise your debts, negotiate with creditors, and recommend the right debt solution for your circumstances. Free advice is available by phone, online, and in person. Paid debt management companies exist but are unnecessary — always try free services first.
Based on your circumstances, your adviser will help you choose from several formal debt solutions: Breathing Space (60-day protection from creditor action), a Debt Management Plan (informal repayment arrangement), a Debt Relief Order (DRO — for low-income, low-asset debtors with debts under £30,000), an Individual Voluntary Arrangement (IVA — legally binding deal with creditors), or bankruptcy. Each has different eligibility criteria, costs, and long-term effects on your credit file.
Frequently asked questions
Will my creditors take me to court immediately?
What is Breathing Space?
Can I be sent to prison for debt?
Official bodies and resources
Citizens Advice
CharityProvides free, confidential, and independent advice on a wide range of issues including benefits, housing, debt, and employment.
Financial Ombudsman Service
OmbudsmanResolves complaints between consumers and financial businesses such as banks, insurers, and lenders.
Related guides
Priority vs Non-Priority Debts
When you are struggling with multiple debts, the most important decision is which to pay first. Not all debts are equal — some carry far more serious consequences than others if left unpaid. Understanding the difference between priority and non-priority debts is the foundation of any debt management strategy and can protect you from losing your home, having your energy cut off, or facing imprisonment.
7 min
Breathing Space (Debt Respite Scheme)
Breathing Space, formally known as the Debt Respite Scheme, gives people in problem debt a legal pause from most creditor action for 60 days. During this period, interest and charges on qualifying debts are frozen, and creditors cannot chase you, take you to court, or send bailiffs. The scheme was introduced in May 2021 and is available in England and Wales.
8 min
Debt Relief Orders
A Debt Relief Order (DRO) is a formal insolvency solution for people with relatively low levels of debt, minimal assets, and very low surplus income. When a DRO is granted, you enter a 12-month moratorium during which creditors cannot take action against you and interest is frozen. At the end of the 12 months, your qualifying debts are written off completely. A DRO can be a powerful fresh start — but it comes with conditions and restrictions.
10 min
Council Tax Arrears and Bailiffs
Council tax is a priority debt — the consequences of not paying include bailiff enforcement, attachment of your earnings, and ultimately committal to prison in extreme cases. However, councils must follow a strict legal process before bailiffs can attend, and enforcement agents have clear rules about what they can and cannot do. Knowing these rules can help you take control of the situation.
9 min
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