Is it possible to clear my debts?

Having debts can be worrying. However, there are lots of options that might help you reduce your debts or clear them altogether.

In this sheet we list 13 options for clearing or reducing your debts. Whether any of the options are right for you depends on your circumstances. For each option there is a link to more detailed information.

• Informally negotiated arrangement

  Make offers to your creditors based on how much spare income you have.

• Free debt management plan (DMP)

  A debt management company distributes the payment offers to your creditors based on how much spare income you have.

• Individual voluntary arrangement (IVA)

  An agreement to pay as much as you can towards your debts for a set amount of time, such as five years, and then the rest is written off.

• Bankruptcy

  At the end of your bankruptcy most debts are written off.

• Debt relief order (DRO)

  Most types of debt will be written off after 12 months.

• Administration order

  A county court order which allows you to make a single payment every month to the court.

• Debt consolidation

  Apply to a lender for a loan to clear debts.

• Full and final settlement offer

  If you have a lump sum available that will pay off part of your debts, ask your creditors to accept a part payment.

• Write off debt

  Ask your creditors to write off debts if you have no income to make any payments, and no savings or assets.

• Equity release

  Use the value of your home to raise money to pay debts.

• Pension freedoms and debts

  Take money from your pension to pay off debts.

• Selling assets to clear debt

  Sell things you own to raise money.

• Help from charitable organisations

  Some charities provide help to people in financial difficulties.