Dealing With Debt: How To Get Out Of Debt

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Debt can feel overwhelming — but you’re not alone. Thousands of people across the UK, including many working in the automotive sector, face money worries every year. This guide will help you understand your options, take control, and get support that’s free, safe and trustworthy.

Important: This is general guidance. Everyone’s situation is different. Whether you're struggling to make ends meet or don't have enough money to cover an unexpected expense - we're here to help. We can help you to maximise benefits, explore available grants and help get you back on track with your finances.

What is debt? (And the types you need to know)

Debt is money you’ve borrowed — but not all debts work the same. Understanding the differences helps you prioritise and choose the right solution.

Secured debts (high-risk if missed)

Linked to something valuable (“security”), such as:

Mortgage
Car finance / hire purchase
Secured loans

If unpaid, the lender may repossess the asset.

Unsecured debts (still important, but lower immediate risk)

Credit cards
Personal loans
Store cards
Overdrafts
Buy-now-pay-later

Priority vs non-priority debts

Some debts have more serious consequences if ignored:

Priority debts:

Rent or mortgage arrears
Council tax
Gas, electric, water
Child maintenance
Court fines
TV licence

Non-priority debts:

Credit cards
Loans
Overdrafts
Store cards
Catalogue debts

You tackle priority debts first because the consequences escalate faster.

Signs your debt may be becoming a problem

You may need support if you notice:

You’re borrowing to pay bills
Payments are often late
Creditors are contacting you more than usual
You’re using overdraft most of the month
You’re stressed, losing sleep, or avoiding opening letters

The sooner you act, the more options you have.

How to deal with debt: Step-by-step

1. Face the situation early

Start by understanding your full picture. Open the emails, pick up the letters — it’s the hardest step, but the one that makes everything else possible.

Create a clear list of:

Every debt (credit cards, loans, overdrafts, BNPL)
Creditor names & balances
Interest rates
Payment due dates
Your income & essential expenses

Look for quick savings

Cancel subscriptions you don’t use
Switch utilities if cheaper
Check if you’re entitled to benefits (use a benefits calculator)
Review your spending for quick wins

2. Understand which debts to prioritise

Deal with priority debts first to avoid eviction, loss of utilities, or legal action. Non-priority debts still matter — but they can often be renegotiated more easily.

3. Get free, impartial debt advice

Before committing to a solution, speak to a regulated charity such as:

StepChange – Free, impartial debt advice
National Debtline – 0808 808 4000
Citizens Advice – Local branches & online support
MoneyHelper – Government-backed information

If you work or have worked in the UK automotive industry, Ben also provides confidential support through our Money Worries programme.

4. Explore your debt options

A free, regulated debt adviser can help you understand which solution is right for your situation. Here’s a simple comparison table of the main UK debt-solution options:

Debt solution comparison table

Debt Solution	Best For	Pros	Cons / Notes
Debt Management Plan (DMP)	Affordable monthly payments	Lowers payments, may freeze interest	Not legally binding, can take years
Debt Consolidation Loan	People with steady income & fair credit	One payment, can lower interest	Must qualify, can increase risk if borrowing more
0% Balance Transfer Card	Credit-card debt with decent credit score	Pay no interest during promo	Fees apply, interest rises after promo
Breathing Space	Anyone needing temporary relief	Pauses interest & creditor action	Short-term (up to 60 days), must use debt advice
Debt Relief Order (DRO)	Low income & assets, debts under limit	Low cost, debts usually written off	Strict eligibility, affects credit for 6 years
Individual Voluntary Arrangement (IVA)	Multiple debts & regular income	Debt written off at end, stops legal action	Long commitment, impacts credit for 6 years
Bankruptcy	Unable to repay debts	Full write-off, fresh start	Serious long-term impact, may lose assets

5. Choose a repayment strategy

If you’re paying off your debts independently, choosing a repayment strategy can help you stay focused and motivated. Two of the most effective methods are the Avalanche and Snowball approaches.

Repayment strategy comparison

Method	Best For	Pros	Cons / Notes
Avalanche	People who want to save the most money	Pays off highest-interest debts first, saves interest	Slower early wins, can feel less motivating at first
Snowball	People who need motivation & quick wins	Pays off smallest debts first, gives visible progress	May cost more in interest overall, slower for high-interest debts

6. Stay in touch with your creditors

Avoiding contact makes things worse. Many creditors are willing to help if you explain your situation.

Ask about:

Freezing interest
Stopping charges
Affordable repayment plans
Help if you’re in “persistent debt”
Breathing Space referral

7. Understand creditor actions & your rights

If you receive letters, calls or threats of action, it’s important to know what is and isn’t allowed.

If you’re facing:

Payment demands
Debt collectors contacting you
County Court Judgement (CCJ) letters
Bailiff notices

Get free advice immediately. Debt collectors cannot enter your home without permission. Bailiffs have stricter rules but only come after court action.