Bills and Credit Card Payments Getting Harder? Free Debt Help in the UK

When income barely covers housing, food, energy and debt payments, putting everyday spending on a credit card can ease this week’s pressure while adding to next month’s bill. You can ask for free debt advice before missing a payment; there’s no need to wait until a lender contacts you.

The pressure is widespread. In polling commissioned by StepChange Debt Charity and conducted by YouGov, 38% of UK adults said they’d found it difficult to keep up with household bills and credit commitments in the preceding few months. The findings were highlighted on 8 October, alongside concerns about rising credit repayment problems. This is a general guide: debt options and processes differ across the UK, so a free adviser can help you understand what fits your circumstances.

What the latest figures say about debt

The Bank of England’s Credit Conditions Survey, published on 8 October, reported that lenders had seen defaults rise on credit cards and other unsecured loans during the three months to the end of August. Unsecured borrowing is credit that isn’t tied to a specific asset, such as a home. The survey describes lenders’ reported experience; it doesn’t give the share of households that missed payments.

StepChange said 75% of its clients had credit card debt, up from 69% in August of the previous year. Those figures describe people who use the charity’s service, rather than all UK households. They do help explain why credit card repayments are a substantial part of the charity’s work.

Decide which bills need attention first

When money is tight, frequent reminders can make one creditor feel more urgent than the others. But the consequences of falling behind matter more than the balance or number of messages. Housing costs and essential services can pose a more immediate risk than an unpaid credit card.

Rent or mortgage arrears and money owed to your current gas or electricity supplier are examples of priority debts. Council tax arrears can also be a priority where council tax applies; Northern Ireland has domestic rates instead. Your circumstances may bring other commitments into the picture. MoneyHelper’s bill prioritiser can help you review what needs attention.

Credit cards, overdrafts and unsecured personal loans are generally non-priority debts. That doesn’t mean they’re harmless to leave unattended: interest, charges and collection action can add pressure. Tell the lender if you’re struggling, and get help working out what you can afford after essential costs and priority bills.

If you’ve received court papers, face eviction or have been warned that your energy supply may be disconnected, tell an adviser as soon as you contact them. Keep relevant letters and deadlines nearby. You don’t have to finish a perfect budget before asking for urgent help.

Talk to lenders before agreeing to payments

Contact a lender when you’re worried about meeting a payment. Explain what has changed and which bill you can’t afford. For example, you might say: “After covering my essential bills, I can’t afford the payment due this month. Can you explain what support is available and how any arrangement would affect interest, charges and my credit file?”

Available support depends on the borrowing and your circumstances. A payment pause or interest freeze isn’t automatic. MoneyHelper’s guide to talking to a creditor suggests ways to prepare. A creditor is a person or company you owe money to.

If several lenders want payment, speak with an adviser before agreeing to an amount you may not sustain. A figure that seems manageable in a single call could leave too little for other bills. Keep notes of conversations and ask for any agreed terms in writing.

Find free debt advice

StepChange Debt Charity offers free advice through an online service you can start at any time, as well as by phone at 0800 138 1111. You don’t need to choose a debt solution before getting in touch. The first step is to explain your finances and work out what you can afford.

Take care when searching online: StepChange has warned about firms impersonating the charity in adverts. Use the direct link above and check you’re on StepChange’s genuine website before sharing personal or financial details.

MoneyHelper’s debt advice locator helps you find free support online, by phone or nearby. For people who are self-employed, StepChange directs those in England, Wales and Scotland to Business Debtline, and those in Northern Ireland to Advice NI. These services can look at business debts alongside personal finances; see StepChange’s guidance on getting debt help. More routes for money guidance are covered in this guide to finding financial advice in the UK.

Get ready, but don’t wait for a perfect budget

Before speaking with an adviser, gather recent statements, income and benefit details, regular household costs, and information about what you owe. Include smaller commitments such as buy now, pay later instalments, as well as cards, loans and overdrafts. Payment dates can help show whether several bills fall due before your next payday.

If you’re missing details, start anyway. StepChange’s online advice service lets you save your progress and return later. Use statements or ask lenders for current balances instead of guessing. Ask the adviser whether you may be missing benefits or other support, too. MoneyHelper’s debt guidance includes checking benefit entitlement and possible grants.

Understand possible effects on your credit file

Getting debt advice from StepChange won’t affect your credit file or score. The steps you take afterwards may have an effect: missed payments, paying below the amount required by your agreement and some debt arrangements can be recorded.

A debt management plan uses an agreed budget to make payments towards debts. If those payments are below the original minimum, that may still be reported on your credit file. StepChange explains how reduced payments may be recorded. Ask an adviser to describe the likely credit-file effects before deciding on an option.

If bills are becoming difficult, note what’s due next and contact a free advice service. Mention any immediate shortage for essentials or urgent deadline at the start. You can begin that conversation before you know how the whole problem will be resolved.

Common questions

Can I ask for help before missing a payment?

Yes. You can seek free advice as soon as you’re worried about keeping up. Flag urgent bills and deadlines when you get in touch.

Is StepChange’s advice free?

Yes. StepChange offers free advice online and by phone at 0800 138 1111.

Will advice affect my credit score?

Advice from StepChange won’t affect your score. Missed payments and arrangements with reduced repayments may affect your credit file.

Can self-employed people get help?

Yes. StepChange directs self-employed people in England, Wales and Scotland to Business Debtline, and people in Northern Ireland to Advice NI.