{ "generated": "2026-10-31", "guides": [ { "type": "guide", "slug": "apr-and-total-repayable", "title": "APR and total repayable: how to understand the real cost of borrowing", "topic": "borrowing-costs", "url": "https://www.piggybankloans.co.uk/guides/borrowing-costs/apr-and-total-repayable", "description": "What APR includes, why a representative APR may not be your rate, and why the total amount repayable is often the clearest way to see what borrowing costs.", "summary": "APR is the annual percentage rate of charge. It combines interest with most compulsory fees into one yearly rate, which makes it useful for comparing similar credit. The total amount repayable is the pounds-and-pence figure: everything you will pay back, including what you borrowed. A representative APR is only what at least 51% of successful applicants get, so check your own rate and total before you sign.", "key_points": [ "APR includes interest and most compulsory fees, such as a broker fee the lender knows about.", "APR does not include charges for missing or paying late, so it does not show what falling behind would cost.", "A representative APR only has to be given to at least 51% of people accepted, and you usually find out your own rate after you apply.", "The total amount repayable shows the cost in pounds: the amount borrowed plus the total charge for credit.", "Compare loans of a similar length and amount, and look at both figures together." ], "sections": [ { "heading": "What APR means", "text": "APR stands for annual percentage rate of charge. Under the FCA’s consumer credit rules it is worked out as the yearly rate that balances the money you receive against everything you repay, including charges.\nBecause it brings interest and fees together, MoneyHelper suggests comparing APRs rather than interest rates alone. A loan with a lower interest rate but a large arrangement fee can cost more than one with a higher rate and no fee, and the APR shows that." }, { "heading": "What APR includes and what it leaves out", "text": "The APR is built from the total charge for credit, which is the total cost of the credit to you. That includes interest and compulsory charges. A fee you pay to a credit broker counts too, when the lender knows about it.\nAPR does not show the cost of falling behind. Charges for missed or late payments are not part of the total cost of credit, so they are not in the APR. Check the agreement for what happens if you miss a payment." }, { "heading": "Representative APR is not always your APR", "text": "Adverts often show a representative APR. Under the FCA’s rules, that is a rate the advertiser reasonably expects at least 51% of the agreements from the advert to be at or below.\nThat means up to 49% of people who are accepted could be offered a higher rate. MoneyHelper points out that you usually only find out your actual rate after you apply. Ask for your personal APR and total before you agree to anything." }, { "heading": "The total amount repayable", "text": "The total amount repayable, sometimes called the total amount payable, is the clearest figure for most people. In the FCA’s rules it is the total charge for credit added to the amount you borrowed, plus any advance payment.\nIt answers the question most people actually have: how much will I hand over in total? It is fixed at the start for fixed-rate credit, and it appears in the information you must be given before you sign." }, { "heading": "What a representative example must show", "text": "If an advert mentions an interest rate or any amount relating to the cost of credit, it must also include a representative example. Under the FCA’s rules the example has to show:\n- the rate of interest, and whether it is fixed or variable\n- any other charges included in the total charge for credit\n- the total amount of credit\n- the representative APR\n- the duration of the agreement, the total amount payable and the amount of each repayment\nUse the example to compare like with like. It is a worked illustration, not a quote for you." }, { "heading": "Why short loans can show very high APRs", "text": "APR is calculated on an annual basis. On credit that lasts only weeks or months, turning the cost into a yearly rate can produce a very large percentage. That is why APR works best for comparing credit of a similar length, and why the total amount repayable matters so much for short-term borrowing.\nWhatever the length, compare the total you will repay with what you can genuinely afford each week or month." }, { "heading": "Cheaper ways to borrow", "text": "If you need to borrow, check the cheaper options first. In Great Britain, credit unions cannot charge more than 3% a month on the balance, including all their administrative costs. MoneyHelper gives that as 42.6% APR. If you are on certain benefits, there may also be government help, and a free debt adviser can talk you through the options." } ], "faq": [ { "question": "Is a lower APR always cheaper?", "answer": "Not always. APR compares credit well when the amount and length are similar. For a different length of loan, look at the total amount repayable and the size of each payment too." }, { "question": "Does the APR include late payment fees?", "answer": "No. Charges for missed or late payments are not part of the total cost of credit, so they are not included in the APR." }, { "question": "Why was I offered a higher rate than the advertised APR?", "answer": "The advertised rate is a representative APR. Only at least 51% of agreements from the advert have to be at or below it, so some people are offered more. You usually find out your own rate after you apply." }, { "question": "Can I pay off a loan early to reduce the cost?", "answer": "Yes. You can repay a regulated consumer credit agreement in full at any time by giving notice and paying what is due, less any rebate of charges." } ], "sources": [ { "title": "Glossary: APR", "publisher": "Financial Conduct Authority Handbook", "url": "https://handbook.fca.org.uk/glossary/G1272" }, { "title": "CONC App 1.2: Total charge for credit rules", "publisher": "Financial Conduct Authority Handbook", "url": "https://www.handbook.fca.org.uk/handbook/CONC/App/1/2.html" }, { "title": "Glossary: representative APR", "publisher": "Financial Conduct Authority Handbook", "url": "https://handbook.fca.org.uk/glossary/G3354" }, { "title": "Glossary: total amount payable", "publisher": "Financial Conduct Authority Handbook", "url": "https://handbook.fca.org.uk/glossary/G1336" }, { "title": "CONC 3.5: Financial promotions about credit agreements", "publisher": "Financial Conduct Authority Handbook", "url": "https://www.handbook.fca.org.uk/handbook/CONC/3/5.html" }, { "title": "Personal loans", "publisher": "MoneyHelper", "url": "https://www.moneyhelper.org.uk/en/everyday-money/credit/personal-loans" }, { "title": "Consumer Credit Act 1974, section 94", "publisher": "legislation.gov.uk", "url": "https://www.legislation.gov.uk/ukpga/1974/39/section/94" }, { "title": "The Credit Unions (Maximum Interest Rate on Loans) Order 2013", "publisher": "legislation.gov.uk", "url": "https://www.legislation.gov.uk/uksi/2013/2589/made" }, { "title": "Borrowing from a credit union", "publisher": "MoneyHelper", "url": "https://www.moneyhelper.org.uk/en/everyday-money/credit/credit-unions" } ], "last_reviewed": "2026-10-28" }, { "type": "guide", "slug": "how-to-check-your-credit-report", "title": "How to check your credit report in the UK", "topic": "credit-reports", "url": "https://www.piggybankloans.co.uk/guides/credit-reports/how-to-check-your-credit-report", "description": "See what lenders see. How to check your credit report with Experian, Equifax and TransUnion, what the free options cover, and how to fix mistakes.", "summary": "The UK has three main credit reference agencies: Experian, Equifax and TransUnion. Each keeps its own file on you, and the files are not always the same, because lenders choose which agencies they report to. CheckReport shows all three in one report. You also have a right to a free statutory report from each agency. Check every file, and ask for anything wrong to be corrected.", "key_points": [ "Experian, Equifax and TransUnion are the three main credit reference agencies. MoneyHelper lists Crediva as a fourth.", "Your files can differ, because each lender decides which agencies it reports to.", "CheckReport combines your Experian, Equifax and TransUnion data in one report.", "Every agency must give you a free statutory report, and has a month to respond.", "Checking your own report is a soft search. It does not affect your credit score.", "If something is wrong, the agency must reply within 28 days of your dispute, and you can add a note of up to 200 words." ], "sections": [ { "heading": "The three main credit reference agencies", "text": "The Information Commissioner’s Office names Equifax, Experian and TransUnion as the three main consumer credit reference agencies in the UK. MoneyHelper also lists Crediva, a smaller agency, as a fourth that produces a statutory credit report.\nLenders do not have to report to every agency. The ICO explains that each lender decides which credit reference agency it uses, if any, so the file one agency holds on you can look different from another’s. A mistake on one file may not appear on the others, which is why it pays to check all three.\nIf a lender turns down an application for regulated credit because of what a credit reference agency told it, the law says the lender must tell you, and give you that agency’s name, address and phone number." }, { "heading": "See all three files in one place", "text": "CheckReport brings your Experian, Equifax and TransUnion data together in one report, so you can compare them side by side instead of signing up to three services. It is free for 7 days, then £14.99 a month, and you can cancel online at any time.\nIt is a good fit if you are about to apply for something important, such as a mortgage or a tenancy, or if you have been turned down and want to see why." }, { "heading": "Your free statutory credit report", "text": "By law, a credit reference agency must give you a copy of the file it holds on you when you ask. The ICO says you do not need to pay for this statutory report, and suggests looking for the words ‘statutory report’ on each agency’s website. The agency has one month from receiving your request to respond, unless it needs more information from you.\nAn FCA study found that 43% of people did not know they could ask for a free statutory report. Here is what each agency offers:\n- Experian: a statutory report online or by post. It shows a basic view of your credit history but does not include the Experian Credit Score.\n- Equifax: a free statutory report for life, online through a free Equifax Basic account or by post.\n- TransUnion: a statutory report showing six years of credit accounts, electoral register details, financial associations, public records, searches from the last two years and any Cifas fraud markers.\n- Crediva: a free statutory report, requested online or by post. Crediva says it responds within 7 business days." }, { "heading": "Free apps that show one agency’s data", "text": "Several free services show your score and report from a single agency. They are useful for keeping an eye on one file, but each one only covers one agency.\nEquifax also sells a fuller plan, which is free for 30 days and then charged monthly. Read what you are signing up to before you enter card details anywhere.", "table": { "caption": "Free credit report services and which agency they use", "head": [ "Service", "Agency data it shows" ], "rows": [ [ "ClearScore", "Equifax (score from 0 to 1000)" ], [ "Credit Karma", "TransUnion" ], [ "MSE Credit Club", "TransUnion" ], [ "Experian free account", "Experian (free score, report in the Experian app)" ], [ "Equifax Basic", "Equifax (monthly score and statutory report)" ] ] } }, { "heading": "What to look for on your report", "text": "- Your name, date of birth and current and past addresses.\n- Accounts you do not recognise. These can be a sign of a mistake or of fraud.\n- Late payments or defaults recorded against accounts you kept up to date.\n- Financial associations. You should only be linked to someone you have a joint account or joint credit with, not just someone who lives at the same address.\n- Whether you are on the electoral register at your current address. Agencies use it to confirm your name and address, and MoneyHelper says registering can help your score.\n- Hard searches. These appear when you apply for credit, and other lenders can see them. Many in a short time can make you look a higher risk.\n- Public records, such as county court judgments, bankruptcies and Debt Relief Orders." }, { "heading": "How long things stay on your file", "text": "MoneyHelper says accurate negative information, such as a missed payment, cannot be removed early. A CCJ paid after the first month can be marked as satisfied, but it stays on the register for six years. In Scotland a court judgment for debt is called a decree, and it also stays on the public register for six years.", "table": { "caption": "How long common entries stay on a UK credit file", "head": [ "Entry", "How long it stays" ], "rows": [ [ "Missed or late payments", "Up to six years" ], [ "A default", "Six years from the default date, even if you later pay it off" ], [ "A county court judgment (England and Wales)", "Six years, unless you pay it in full within one month and ask the court to remove it" ], [ "Bankruptcy (England and Wales)", "Six years from the date of the bankruptcy" ], [ "A Debt Relief Order", "Six years" ], [ "Hard searches", "Experian: most for 12 months. Equifax: one year. TransUnion: around two years." ] ] } }, { "heading": "How to fix a mistake", "text": "1. Contact the agency that shows the mistake.: Experian, Equifax and TransUnion each say they will look into it and contact the lender or company that supplied the information. The ICO points out that the problem may lie with the lender, and that an agency cannot change an entry without the permission of the company that supplied it.\n2. Wait for the answer.: Once you tell an agency an entry is wrong and likely to harm you, the law says it must reply within 28 days to say whether it has removed it, changed it or left it as it is. MoneyHelper says the entry is marked as disputed while it is checked.\n3. Add a notice of correction if you need to.: If the entry stays, you can ask the agency to add a notice of correction of up to 200 words, written by you, which lenders will see alongside it. MoneyHelper says this does not affect your score but can slow applications down, and you need to add it with each agency separately.\n4. Escalate if it is still not fixed.: You can complain to the ICO if an agency and lender will not fix an obvious inaccuracy, though the ICO does not decide financial disputes. Eligible complaints about financial services can also go to the Financial Ombudsman Service, which upheld a complaint against a credit reference agency in January 2026. Since 30 September 2026, disputes about notices of correction go to the Information Commission, which replaced the Information Commissioner." }, { "heading": "Be careful with credit repair firms", "text": "Helping someone see or correct their credit file is a regulated activity, and the FCA has strict rules for credit repair firms. They must not claim they can remove accurate negative information, such as a court judgment. They must not mislead you about how long information stays on your file, or say you can get a new credit file by moving address.\nMoneyHelper warns that most expensive credit repair firms only tell you how to see and improve your report, which you can do yourself for free. TransUnion warns that firms selling ‘freeman on the land’ style ways to write off debts are likely to be a scam." } ], "faq": [ { "question": "Does checking my own credit report affect my score?", "answer": "No. Checking your own report is a soft search, which only you and the agency can see, so it does not affect your credit score." }, { "question": "Why is my credit score different at each agency?", "answer": "There is no single UK credit score. Each agency uses its own scale: Experian’s now runs from 0 to 1250, Equifax’s from 0 to 1000 and TransUnion’s from 0 to 999. They also hold different information, because lenders choose which agencies to report to." }, { "question": "Do lenders see the credit score I see?", "answer": "Each lender uses its own criteria, so a high score does not guarantee you will be accepted. ClearScore, for example, says lenders do not see your ClearScore number. They look at the data in your credit report and apply their own scoring." }, { "question": "How long does a statutory credit report take?", "answer": "The ICO says an agency has one month from receiving your request to respond, unless it needs more information from you." }, { "question": "Can a credit repair company remove bad credit from my file?", "answer": "Not if it is accurate. FCA rules ban credit repair firms from claiming they can remove accurate negative information. You can dispute anything that is wrong yourself, for free." } ], "sources": [ { "title": "Credit", "publisher": "Information Commissioner’s Office", "url": "https://ico.org.uk/for-the-public/credit/" }, { "title": "How to check your credit report", "publisher": "MoneyHelper", "url": "https://www.moneyhelper.org.uk/en/everyday-money/credit/how-to-check-your-credit-report" }, { "title": "How to improve your credit score", "publisher": "MoneyHelper", "url": "https://www.moneyhelper.org.uk/en/everyday-money/credit/how-to-improve-your-credit-score" }, { "title": "Consumer Credit Act 1974, section 157", "publisher": "legislation.gov.uk", "url": "https://www.legislation.gov.uk/ukpga/1974/39/section/157" }, { "title": "Consumer Credit Act 1974, section 159", "publisher": "legislation.gov.uk", "url": "https://www.legislation.gov.uk/ukpga/1974/39/section/159" }, { "title": "Statutory credit report", "publisher": "Experian", "url": "https://www.experian.co.uk/consumer/statutory-report.html" }, { "title": "Statutory credit report", "publisher": "Equifax", "url": "https://www.equifax.co.uk/products/credit/statutory-report" }, { "title": "Consumer support", "publisher": "TransUnion", "url": "https://www.transunion.co.uk/consumer/consumer-support" }, { "title": "Statutory credit report", "publisher": "Crediva", "url": "https://crediva.co.uk/statutory-credit-report/" }, { "title": "Credit information market study: final report annex", "publisher": "Financial Conduct Authority", "url": "https://www.fca.org.uk/publication/market-studies/ms-19-1-3.pdf" }, { "title": "CCJs and your credit rating", "publisher": "GOV.UK", "url": "https://www.gov.uk/county-court-judgments-ccj-for-debt/ccjs-and-your-credit-rating" }, { "title": "CONC 8.10: Credit repair", "publisher": "Financial Conduct Authority Handbook", "url": "https://handbook.fca.org.uk/handbook/conc8/conc8s10" } ], "last_reviewed": "2026-10-28", "credit_report_partner": { "name": "CheckReport", "url": "https://checkreport.co.uk/", "headline": "The UK’s most detailed credit report and score", "description": "Join 5 million others who trust the only credit report that combines data from all three major credit reference agencies: Experian, Equifax and TransUnion.", "price": "Free for 7 days, then £14.99 a month. Cancel online at any time.", "provided_by": "Checkmyfile (Credit Reporting Agency Limited, FCA firm reference 690175)", "disclosure": "CheckReport is provided by Checkmyfile (Credit Reporting Agency Limited, authorised and regulated by the Financial Conduct Authority, firm reference 690175). PiggyBank is an official introducer for Checkmyfile and may be paid if you sign up. That never changes what we write." } }, { "type": "guide", "slug": "cant-afford-your-loan-repayments", "title": "What to do if you cannot afford your loan repayments", "topic": "money-help", "url": "https://www.piggybankloans.co.uk/guides/money-help/cant-afford-your-loan-repayments", "description": "Struggling with loan repayments? What your lender must do under FCA rules, how to ask for help, where to get free advice and how to complain if it goes wrong.", "summary": "Contact your lender as soon as you know a payment will be difficult, and get free debt advice. Under FCA rules, a regulated lender must treat you with forbearance: it might accept lower or token payments for a while, or stop adding interest and charges. It must not pressure you to borrow more to repay. If you are unhappy with how it treats you, you can complain, and then go to the Financial Ombudsman for free.", "key_points": [ "Tell your lender early. It is easier to agree a plan before payments are missed.", "Lenders must treat customers in difficulty with forbearance and take their circumstances into account.", "Help can include reduced or token payments for a time, or stopping interest and charges.", "Pay your priority bills first, such as rent, council tax and energy.", "Free debt advice is available, and the Financial Ombudsman is free if a complaint is not sorted out." ], "sections": [ { "heading": "Step one: work out what you can afford", "text": "Before you speak to anyone, list what comes in and what has to go out each week or month. Put your priority bills first: rent or mortgage, council tax, gas and electricity, and food. These are the bills where falling behind can cost you the most, and the FCA’s own rules describe them as priority debts and essential living expenses.\nWhat is left is what you can realistically offer your other creditors. If nothing is left, that is useful information too, and a free debt adviser can help you put it to your lenders." }, { "heading": "Step two: contact your lender", "text": "Tell your lender that you are struggling, what has changed and what you can afford. You do not need to have every answer. The FCA’s rules say a lender must treat customers who are in or approaching arrears with forbearance and due consideration, and must take into account the individual circumstances it knows about, or should know about.\nApproaching arrears counts too. The rules cover customers approaching arrears, so you can ask for help before you miss a payment." }, { "heading": "What a lender might offer", "text": "FCA guidance gives examples of what forbearance can look like. Depending on your situation, a lender might:\n- suspend, reduce, waive or cancel further interest or charges, for example when you can show you are in financial difficulty and can only make token repayments\n- accept no payments, reduced payments or token payments for a reasonable period, if paying in full would mean you could not pay your priority debts or essential living costs\n- agree a repayment arrangement with you that you can keep up\nIf you agree an arrangement and stick to it, the lender must reduce, waive or cancel interest and charges as far as needed so that the debt does not rise during that arrangement. It must also take all reasonable steps to make sure the arrangement is sustainable." }, { "heading": "What a lender must not do", "text": "A regulated lender must not pressure you to pay a debt in one or very few payments, within an unreasonably short time, or by selling your property, borrowing money or increasing existing borrowing. If you are being pushed to take out new credit to clear old credit, say no and get free advice.\nA lender should also tell you that free and impartial debt advice is available from not-for-profit advice services." }, { "heading": "Get free debt advice", "text": "A free adviser can help you work out a realistic budget, talk to your lenders, and explain options such as a debt management plan. In England and Wales, an adviser can also apply for Breathing Space for you, which gives up to 60 days during which creditors cannot add interest, fees or charges to the debts it covers or take enforcement action. You do not need to pay a company for any of this." }, { "heading": "If your lender will not help", "text": "Make a complaint to the lender first, in writing if you can. It must send you a final response, or explain why it needs more time, by the end of eight weeks.\nIf you are unhappy with its final response, or eight weeks pass without one, you can take your complaint to the Financial Ombudsman Service. It is free, and you do not need to pay a lawyer or claims management company to represent you. You normally need to go to the Ombudsman within six months of the date on the lender’s final response. Call it on 0800 023 4567, 8am to 5pm, Monday to Friday." } ], "faq": [ { "question": "Will my lender freeze interest if I cannot pay?", "answer": "It might. FCA guidance lists suspending, reducing, waiving or cancelling further interest or charges as forms of forbearance. If you agree a repayment arrangement and keep to it, the lender must make sure interest and charges do not make the debt rise during that arrangement." }, { "question": "Should I take out another loan to pay this one?", "answer": "Be very careful. Borrowing to repay borrowing usually makes the problem bigger. A regulated lender must not pressure you to borrow more to repay a debt. Talk to a free debt adviser first." }, { "question": "How long does a lender have to answer a complaint?", "answer": "Eight weeks. By then it must send a final response, or explain the delay and tell you that you can go to the Financial Ombudsman." }, { "question": "Is the Financial Ombudsman free?", "answer": "Yes. The Financial Ombudsman Service is free for consumers, and you do not need to pay anyone to represent you." } ], "sources": [ { "title": "CONC 7.3: Treatment of customers in default or arrears", "publisher": "Financial Conduct Authority Handbook", "url": "https://www.handbook.fca.org.uk/handbook/CONC/7/3.html" }, { "title": "PS24/2: Strengthening protections for borrowers in financial difficulty", "publisher": "Financial Conduct Authority", "url": "https://www.fca.org.uk/publications/policy-statements/ps24-2-strengthening-protections-borrowers-financial-difficulty" }, { "title": "DISP 1.6: Complaints time limit rules", "publisher": "Financial Conduct Authority Handbook", "url": "https://www.handbook.fca.org.uk/handbook/DISP/1/6.html" }, { "title": "How to complain", "publisher": "Financial Ombudsman Service", "url": "https://www.financial-ombudsman.org.uk/consumers/log-ombudsman-connect/how-to-complain" }, { "title": "Contact us", "publisher": "Financial Ombudsman Service", "url": "https://www.financial-ombudsman.org.uk/contact-us" }, { "title": "Breathing Space", "publisher": "GOV.UK", "url": "https://www.gov.uk/options-for-paying-off-your-debts/breathing-space" } ], "last_reviewed": "2026-10-28" }, { "type": "guide", "slug": "where-to-get-free-debt-advice", "title": "Where to get free debt advice in the UK", "topic": "money-help", "url": "https://www.piggybankloans.co.uk/guides/money-help/where-to-get-free-debt-advice", "description": "Free, confidential debt advice from MoneyHelper, StepChange, National Debtline and Citizens Advice, with phone numbers, opening hours and what they can do.", "summary": "Free debt advice is available to everyone in the UK. StepChange (0800 138 1111), National Debtline (0808 808 4000) and the Citizens Advice debt helpline (0800 240 4420) can look at your whole situation, explain your options and help you deal with the people you owe. MoneyHelper (0800 011 3797) is free, government-backed money guidance.", "key_points": [ "Debt advice is free. The FCA says so, and you never need to pay a company for it.", "StepChange, National Debtline and Citizens Advice give free, confidential advice by phone and online.", "There are separate services in Scotland, Wales and Northern Ireland.", "An adviser can apply for Breathing Space for you, which pauses most interest, charges and enforcement for up to 60 days in England and Wales.", "If money worries are making you feel desperate, Samaritans is free on 116 123, day or night." ], "sections": [ { "heading": "Free debt advice services", "text": "Each of these is free. The numbers and opening hours below were copied from each organisation’s own website.\nMoneyHelper is a free service from the Money and Pensions Service. StepChange’s free, impartial debt advice is accredited by MoneyHelper.", "table": { "caption": "Free debt advice phone lines", "head": [ "Service", "Phone", "When it is open" ], "rows": [ [ "StepChange Debt Charity", "0800 138 1111", "Monday to Friday 8am to 8pm, Saturday 9am to 2pm" ], [ "National Debtline", "0808 808 4000", "Monday to Friday 9am to 8pm, Saturday 9:30am to 1pm" ], [ "Citizens Advice debt helpline", "0800 240 4420", "Monday to Friday 9am to 8pm, Saturday 9.30am to 1pm" ], [ "MoneyHelper", "0800 011 3797", "Monday to Friday 9am to 5pm" ], [ "Christians Against Poverty", "0800 328 0006", "Free debt help for anyone, whatever their beliefs" ], [ "Business Debtline", "0800 197 6026", "For the self-employed and small businesses, Monday to Friday 9am to 8pm" ] ] } }, { "heading": "Scotland, Wales and Northern Ireland", "text": "- Scotland: the Citizens Advice Helpline on 0800 028 1456 connects you to your local bureau for free, confidential and impartial advice. The Scottish Government also funds organisations that give free debt advice.\n- Wales: Citizens Advice runs Advicelink on 0800 702 2020, open 8am to 7pm Monday to Friday and 9am to 1pm on Saturdays.\n- Northern Ireland: Advice NI gives free, confidential debt advice on freephone 0800 915 4604." }, { "heading": "What a debt adviser can do for you", "text": "A debt adviser looks at everything you owe and everything coming in and going out, then explains your options in plain terms. That could be a plan to pay your debts over time, or a formal solution if your debts are too big to repay.\nIn England and Wales, a debt adviser can also apply for Breathing Space for you. During a standard breathing space, which lasts up to 60 days, your creditors cannot add interest, fees or charges to the debts it covers or take enforcement action. You still need to keep up your repayments if you can, and you have to talk to a debt adviser to get it." }, { "heading": "Free debt solutions you might hear about", "text": "- A debt management plan is an agreement with your creditors to pay all your debts over time. It only covers unsecured debts. StepChange does not charge fees for its plans.\n- A Debt Relief Order in England and Wales is for people who owe less than £50,000, have less than £2,000 of assets, do not own a vehicle worth £4,000 or more, and have less than £75 a month spare income. There is no fee, and you apply through an approved debt adviser.\n- An Individual Voluntary Arrangement is set up through an insolvency practitioner and usually involves fees, so get free advice before you agree to one.\nEvery debt solution has downsides, including an effect on your credit file. A free adviser will explain these before you decide." }, { "heading": "How to spot a firm you should avoid", "text": "The FCA has warned that some people are steered towards fee-paying debt solutions, such as IVAs, that may not suit them. Be wary if you are pressured to agree to a debt solution quickly over the phone or on WhatsApp.\nUse the FCA’s Firm Checker to confirm a firm is authorised and that its contact details match. StepChange warns that some clone firms advertise online using its name and similar terms, so type the charity’s web address yourself rather than clicking an advert." }, { "heading": "If money worries are affecting your mental health", "text": "Money worries can make you feel trapped and hopeless. If you are finding it hard to see a way forward, you can talk to Samaritans for free on 116 123, from any phone, at any time, day or night. Mind runs an Infoline on 0300 123 3393.\nIn England and Wales there is also a mental health crisis breathing space for people receiving mental health crisis treatment. It lasts until 30 days after the treatment ends, and unlike a standard breathing space there is no 12-month wait before you can have another one." } ], "faq": [ { "question": "Is debt advice really free?", "answer": "Yes. The FCA says free debt advice is available to everyone. StepChange, National Debtline, Citizens Advice and MoneyHelper do not charge for advice." }, { "question": "Will getting debt advice affect my credit file?", "answer": "Some debt solutions do affect it: a Debt Relief Order, for example, stays on your credit record for 6 years. A free adviser will explain the effect of each option before you choose." }, { "question": "What is Breathing Space?", "answer": "It is a government scheme in England and Wales that gives you up to 60 days’ protection. During that time creditors cannot add interest, fees or charges to the debts it covers or take enforcement action. You get it through a debt adviser." }, { "question": "Should I tell my lender I am getting debt advice?", "answer": "Yes. Under the FCA’s rules, a regulated lender should tell a customer in difficulty that free debt advice is available, and it must treat customers in arrears with forbearance." } ], "sources": [ { "title": "Contact us", "publisher": "StepChange Debt Charity", "url": "https://www.stepchange.org/contact-us.aspx" }, { "title": "Get help", "publisher": "National Debtline", "url": "https://nationaldebtline.org/get-help/" }, { "title": "Contact us", "publisher": "Citizens Advice", "url": "https://www.citizensadvice.org.uk/about-us/contact-us/" }, { "title": "Contact us", "publisher": "MoneyHelper", "url": "https://www.moneyhelper.org.uk/en/contact-us" }, { "title": "Breathing Space", "publisher": "GOV.UK", "url": "https://www.gov.uk/options-for-paying-off-your-debts/breathing-space" }, { "title": "Debt Relief Orders", "publisher": "GOV.UK", "url": "https://www.gov.uk/options-for-paying-off-your-debts/debt-relief-orders" }, { "title": "Debt advice warning: spot the red flags", "publisher": "Financial Conduct Authority", "url": "https://www.fca.org.uk/news/press-releases/debt-advice-warning-spot-red-flags" }, { "title": "Contact a Samaritan", "publisher": "Samaritans", "url": "https://www.samaritans.org/how-we-can-help/contact-samaritan/" } ], "last_reviewed": "2026-10-28" }, { "type": "guide", "slug": "which-bills-to-pay-first", "title": "Which bills to pay first when money is tight", "topic": "money-help", "url": "https://www.piggybankloans.co.uk/guides/money-help/which-bills-to-pay-first", "description": "Some debts can cost you your home, your energy supply or a court summons. How to tell priority debts from the rest, and where to get free help today.", "summary": "Pay your priority debts first. These are the bills where falling behind has the most serious consequences: rent or mortgage, council tax, gas and electricity, court fines, child maintenance and tax. Credit cards, loans, overdrafts and catalogue debts usually come after them. If you are facing court action, bailiffs, disconnection or eviction, get free debt advice straight away.", "key_points": [ "A priority debt is one with serious consequences if it goes unpaid, not the biggest or most expensive one.", "Rent, mortgage, council tax, energy bills, court fines, child maintenance and tax usually come first.", "Credit cards, loans, overdrafts, payday loans and home credit are usually non-priority debts.", "Your water cannot be cut off, but it is still worth treating as an essential bill.", "Lenders must treat you with forbearance if you are struggling, and they must not pressure you to borrow more to pay them." ], "sections": [ { "heading": "What makes a debt a priority", "text": "MoneyHelper, the free government-backed money service, describes priority debts as the ones that carry the most serious consequences if you do not pay them. That is not the same as the largest debt, or the one with the highest interest.\nThe difference comes down to what the people you owe can do. National Debtline explains that creditors collecting priority debts have stronger powers to recover the money than other creditors. Some debts can be priority or non-priority depending on your circumstances, which is one reason free advice is worth getting." }, { "heading": "Debts that usually come first", "text": "MoneyHelper lists these as priority debts:\n- mortgage, rent and any loans secured against your home\n- Council Tax or Rates\n- gas and electricity bills\n- court fines\n- child maintenance\n- Income Tax, National Insurance and VAT\n- your TV Licence\n- hire purchase agreements, if what you are buying with them is essential\n- missed payments owed to the DWP or HMRC\nCitizens Advice explains why some of these matter so much. Your council might take you to the magistrates’ court over unpaid council tax, and a landlord might evict you over rent arrears. Falling behind on priority debts can also lead to bailiffs, a court summons or your gas and electricity being cut off." }, { "heading": "Debts that can usually come after", "text": "MoneyHelper gives these as examples of non-priority debts:\n- overdrafts, personal loans and bank or building society loans\n- credit card and store card debts, and payday loans\n- catalogue, home credit and in-store credit debts\n- money borrowed from friends or family\n- water and sewerage bills\nNon-priority does not mean you can ignore them. The consequences are less serious, but a creditor could eventually take you to court or instruct bailiffs. The point is to keep a roof over your head and the lights on first, then deal with the rest, ideally with an adviser’s help." }, { "heading": "Water bills", "text": "Your water supply cannot be cut off because you have not paid, which is why Citizens Advice lists water debts as non-priority. MoneyHelper still suggests treating water and sewerage as an essential household bill and considering it alongside your priority bills, before other non-priority debts." }, { "heading": "If you are facing court, bailiffs or eviction", "text": "MoneyHelper says to get free, independent debt advice urgently if you are facing court action, bailiff action, disconnection, or eviction for mortgage or rent arrears. A free adviser can look at your whole situation and explain your options. The organisations listed at the end of this guide do not charge." }, { "heading": "What your lenders have to do", "text": "If you owe money to a lender regulated by the Financial Conduct Authority, you have protection. The FCA’s rules say a lender must treat customers who are in or approaching arrears with forbearance and due consideration, taking into account their individual circumstances.\nIn practice that can include suspending, reducing, waiving or cancelling further interest or charges. If you agree a repayment arrangement and stick to it, the lender must reduce, waive or cancel interest and charges as needed so the debt does not keep rising during that arrangement.\nA lender also must not pressure you to pay within an unreasonably short time, or to raise the money by selling your property or by borrowing more. The same rules describe priority debts and essential living expenses as including payments for mortgage, rent, council tax, food and utility bills.\nTell the people you owe early. It is easier to agree a plan before payments are missed than after. If a creditor is pressuring you, say that you are getting free debt advice." }, { "heading": "Watch out for paid debt firms", "text": "The FCA says free debt advice is available to everyone. It has warned that some people are steered towards fee-paying debt solutions that may not suit them. One red flag is being pressured to agree to a debt solution quickly over the phone or on WhatsApp.\nBefore you agree anything, use the FCA’s Firm Checker to confirm a firm is authorised and that its contact details match. StepChange also warns that some clone firms advertise online using its name, so go to the charity’s own website directly." } ], "faq": [ { "question": "Is a payday loan a priority debt?", "answer": "No. MoneyHelper lists payday loans, credit and store cards, personal loans, overdrafts and catalogue or home credit debts as non-priority debts. They still need dealing with, but after the bills where the consequences of falling behind are more serious." }, { "question": "Can my water be cut off if I cannot pay?", "answer": "No. Your supplier cannot cut off your water supply for non-payment, which is why Citizens Advice treats water debt as non-priority. MoneyHelper still suggests treating it as an essential bill alongside your priority bills." }, { "question": "Can a lender pressure me to borrow more to pay them back?", "answer": "No. Under the FCA’s rules, a regulated lender must not pressure you to raise money to repay a debt by borrowing money, increasing existing borrowing or selling your property." }, { "question": "Should I pay a company to help with my debts?", "answer": "You do not need to. The FCA says free debt advice is available to everyone, and it warns that some people are steered towards fee-paying solutions that may not suit them. Start with one of the free services listed on this page." } ], "sources": [ { "title": "How to prioritise your debts", "publisher": "MoneyHelper", "url": "https://www.moneyhelper.org.uk/en/everyday-money/credit/how-to-prioritise-your-debts" }, { "title": "Work out which debts to deal with first", "publisher": "Citizens Advice", "url": "https://www.citizensadvice.org.uk/debt-and-money/help-with-debt/dealing-with-your-debts/work-out-which-debts-to-deal-with-first/" }, { "title": "How to manage debt: a step-by-step plan", "publisher": "National Debtline", "url": "https://nationaldebtline.org/get-information/guides/how-to-manage-debt-a-step-by-step-plan-to-get-back-in-control/" }, { "title": "CONC 7.3: Treatment of customers in default or arrears", "publisher": "Financial Conduct Authority Handbook", "url": "https://www.handbook.fca.org.uk/handbook/CONC/7/3.html" }, { "title": "Debt advice warning: spot the red flags", "publisher": "Financial Conduct Authority", "url": "https://www.fca.org.uk/news/press-releases/debt-advice-warning-spot-red-flags" } ], "last_reviewed": "2026-10-28" } ] }