Debt advice

Some debts can have more serious consequences if they are not dealt with, such as rent arrears, mortgage arrears, council tax, energy arrears, court fines, child maintenance or debts linked to keeping essential services.

We can help you work out which debts are priority debts, what action creditors can take, and how to make safe, realistic offers that protect your home, essential services and wellbeing wherever possible.

We can help you prepare a budget that reflects real life, not guesswork. This can make it easier to see what is affordable and what is not.

We can also look at income maximisation, including benefit checks, missing entitlements, grants, hardship schemes or other support that may improve your situation before a debt option is considered.

Breathing Space, also called the Debt Respite Scheme, can give someone with problem debt temporary legal protection from most creditor action while they get debt advice.

It is not suitable for everyone and it does not write debts off, but it can create space to understand your options and make a plan. We can talk through whether it may be appropriate for you.

There are different ways to deal with debt. Some are informal, such as budgeting, affordable repayment offers, token payments, negotiating with creditors or a Debt Management Plan. Others are formal or insolvency solutions, such as a Debt Relief Order, Individual Voluntary Arrangement, Administration Order or Bankruptcy.

Every option has rules, benefits, risks and consequences. Some may affect your credit file, assets, bank account, tenancy, employment or future borrowing. We will explain options in plain language so you can make an informed decision.

A Debt Relief Order, often called a DRO, may be an option for people on a low income with little spare money and few assets. If accepted, a DRO usually freezes qualifying debts for 12 months and those debts are written off if your circumstances have not improved during that period.

You can only apply for a DRO through an approved intermediary. AC has in-house Debt Relief Order intermediaries, so if a DRO looks like it may be suitable, we can check eligibility, explain the consequences and support the application process.

Debt pressure can affect mental health, and mental health difficulties can make it harder to open letters, answer calls, budget, remember appointments or deal with creditors. You are not alone in that.

Where it is helpful and you consent, we can support the use of the Debt and Mental Health Evidence Form. This can help creditors understand how your mental health affects the way you manage money and what reasonable support or adjustments may be needed.