Debt Awareness Week: 6 tips on dealing with your debts

It's Debt Awareness Week, and StepChange is shining a light on how the stigma around debt can prevent people from accessing support. 

A survey by the debt charity found that 13% of people think it is always within someone's control to avoid problem debt, with those aged over 55 most likely to take this view.

Problem debt is often caused by a significant change in circumstances, for example a job loss, and StepChange says negative attitudes towards debt are a barrier to getting help. 

Here, we set out six steps you can take if you're struggling, including where to get support and how to prioritise debts. 

1. Speak to someone

Opening up about debt can be difficult – StepChange's survey showed 27% of people are unlikely to speak to loved ones about their debt problems. 

However, talking to someone can be an important first step in taking control of your debts.

A professional debt adviser can provide free, non-judgemental support to help you get your finances back on track. 

An adviser can assess your finances, offer guidance on potential solutions and help you negotiate with your creditors if necessary. 

See our guide on free debt advice contacts for more information on organisations that can offer help. 

2. Get temporary relief

Breathing Space is a government scheme that offers relief from interest payments, fees and court action for up to 60 days, giving you time to get advice and come up with a plan.

To be eligible you must live in England or Wales, and a debt adviser must submit an application on your behalf. 

If you live in Scotland, you may be able to apply for a debt moratorium instead. 

Northern Ireland is currently developing a local debt respite scheme, similar to Breathing Space. 

In the meantime, a debt adviser may be able to ask your creditors for period of respite while you make a plan for tackling your debt.

3. Prioritise your debts

If you’re struggling with multiple debts, you'll need to work out which are the 'priority debts' and pay those off first. A debt adviser can help you do this. 

StepChange recommends that you prioritise paying off debts that, if unpaid, could:

• impact your home and health
• cause legal issues
• lead to more debt

Once you’ve paid your priority debts, you should next focus on your most expensive debts to avoid racking up extra costs in fees and interest charges. 

If you have credit card with a high interest rate, you might want to consider a 0% balance transfer credit card. 

These cards allow you to shift the debt to a card where the interest is frozen for a set period of time.

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4. Get help with household bills

28% of people surveyed by StepChange cited cost of living increases as the main cause of their debt. 

If you’re struggling to pay your energy bills, you should let your supplier know right away. Your provider has an obligation to help find a solution and may be able to help you access a hardship fund or grant.

You may also be eligible for targeted support from the government or your local council. For more information, see our guides on heating grants.

If you're struggling to pay your mortgage, you should speak to your lender as soon as possible, as they should be able to offer support.

Our guide on what to do if you can't pay your mortgage sets out the steps you should take. 

5. Check if you’re eligible for benefits and grants

You may be entitled to government benefits that you’re not aware of, and these could be a vital boost to your income if you’re struggling with debt. 

A simple way to find out how much you may be able to claim is to use a benefits calculator.

StepChange says an extra £12 million was found for its clients using its calculator in 2024. 

Many charities also offer grants to people experiencing financial difficulties. The charity Turn2Us has created a useful Grants Search tool.

6. Look after your mental health

Debt and financial difficulties can have a serious impact on your mental health. 

While it can be daunting to speak about debt, reaching out for help is essential if you’re struggling – a Which? Money investigation in 2021 found that debt charities can offer life-changing support to people whose mental health is affected by money issues.

If you’re struggling with your mental health, there are a range of free support services you can access in the UK.

Hub of Hope is a directory of mental health services, and can help you find support from the NHS, charities and peer support groups.