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Debt and Credit Advice

Debt Repayment Options To Help Clear My Debt

Article: Debt Repayment Help - How To Repay My Debt

Published 13 May 2022



If you find yourself in debt (owing money to creditors), you have a number of options to help you repay your debt. Your available options to get out of debt will depend on how much money you owe, your assets and the amount of money you have.

This article will cover ways you can repay your debt:

  • Breathing Space (Debt Respite Scheme) 
  • Debt Management Plans (DMP)
  • Administration Order (AO)  
  • Individual Voluntary Arrangements (IVA)
  • Debt Relief Order (DRO) 
  • Summary


Breathing Space (Debt Respite Scheme)

In England and Wales you have the option to apply for the Breathing Space Scheme, which as it’s name suggests can give you time to get help with debt.

If you are successful you could get up to 60 days of temporary protection from your creditors. with most interest, penalty charges, and enforcement action halted. However you still have to continue making your debt payments.

Some eligibility criteria exists including that you do not have a debt relief order (DRO), an individual voluntary arrangement (IVA), an interim order, or be an undischarged bankrupt at the time you apply.

Read more: Breathing Space – Debt Respite Scheme


Debt Management Plan (DMP)

A Debt Management Plan is an agreement between you and your creditors to pay all of your debts at an affordable rate by making reduced monthly payments.

Debt Management Plans can only be used to pay ‘unsecured debts’ or ‘non-priority debt’s such as store cards, overdrafts and personal loans, that have not been guaranteed against your property.

Your DMP provider will help you work out an affordable payment and talk to your creditors.

Read more: Guide to Debt Management Plans


Administration Order (AO)

An administration order is a way to deal with debt if you have a county court or High Court judgement against you and you cannot pay in full.

You make 1 payment a month to your local court. The court will divide this money between your creditors.

Your debts can be no more than £5000 in total.

An administration order lasts until the debts are cleared and the court fees paid.

Read more: Administration Order



Individual Voluntary Arrangement (IVA)

An Individual Voluntary Arrangement is a debt solution for unsecured debts.

The IVA is a formal agreement and will start if the creditors holding 75% of your debts agree to it.

You pay back a portion of your total debt based on what you can afford, usually over five or six years. The remainder of your debt is written off.

Read more: Individual Voluntary Arrangements 


Debt Relief Order (DRO)

A Debt Relief Order freezes your debt repayments and interest for 12 months.

If after a year your financial situation has not changed then all of the debts included in your DRO will be written off.

To be eligible for a DRO you must owe less than £30,000, not have much spare income and not own your home.

Read more: Debt Relief Order



You can potentially clear your debts by setting up:

  • a Debt Management Plan which is an agreement with your creditors managed by a financial company
  • an Administration Order when you’ve had a county court judgement (CCJ) or a High Court judgement (HCJ) against you for debts under £5,000
  • an Individual Voluntary Arrangement which is managed by an insolvency practitioner.
  • a Debt Relief Order for debts less than £30,000, through the official receiver.
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