What StepChange is and how its debt advice works
People often search for “step change” when they mean StepChange Debt Charity, a UK organisation offering free debt advice online and by telephone. Its advisers assess your circumstances before recommending actions or debt solutions.
You will normally be asked about household income, priority bills, essential living costs, savings, assets and everyone you owe money to. The aim is to establish what you can realistically afford after essential expenditure—not to force an unaffordable payment.
What to prepare before starting
- Recent bank statements and evidence of household income.
- Rent or mortgage details, Council Tax and utility bills.
- Credit statements, arrears letters and court documents.
- Details of savings, vehicles, property and other significant assets.
- A list of essential costs, including food, travel, childcare and health expenses.
If income is missing or uncertain, check possible entitlements through SupportFund’s benefits calculator guidance before agreeing a long-term repayment figure.
Urgent warning: do not wait for a full debt-advice appointment if you have received a court deadline, eviction notice, bailiff notice, energy disconnection warning or statutory demand. Seek immediate specialist help and tell the adviser about the deadline at the start.
What happens during a StepChange assessment
The assessment begins with a budget showing money coming in and reasonable household spending. Debts are then separated into priority and non-priority liabilities according to the consequences of non-payment.
Priority does not necessarily mean the largest balance or highest interest rate. Rent, mortgage, Council Tax, gas, electricity, court fines and some taxes require particular attention because enforcement can threaten your home, essential services or liberty.
- Complete the budget: use accurate monthly or weekly figures rather than amounts you hope to manage.
- Identify emergencies: disclose possession action, enforcement visits and imminent court dates.
- Review the recommendation: ask how it affects interest, assets, employment, housing and your credit record.
- Consider alternatives: you do not have to accept the first proposed route immediately.
- Keep evidence: save your budget, reference number and copies of creditor correspondence.
Households struggling with housing payments should address rent arrears and possession risks separately rather than treating rent as an ordinary unsecured debt.
Budgeting tip: never understate food, heating, disability-related costs or essential travel merely to produce a payment offer. An arrangement that only works in an unusually cheap month is unlikely to remain sustainable.
Debt solutions StepChange may discuss
The appropriate option depends on where you live, your disposable income, assets, debt types and whether your circumstances are likely to improve. Formal insolvency law differs across England and Wales, Scotland and Northern Ireland.
| Possible route | How it generally works | Main issues to check |
|---|---|---|
| Informal payment arrangement | You or an adviser asks creditors to accept affordable reduced payments. | Creditors are not necessarily bound, interest may continue and the arrangement can affect credit records. |
| Debt management plan | One affordable payment is distributed among eligible non-priority creditors. | It is informal; creditors may still take action and are not legally required to freeze interest. |
| Breathing Space | An eligible person in England or Wales receives temporary protection while dealing with problem debt. | GOV.UK states that standard Breathing Space can provide protection for up to 60 days; eligibility and excluded debts must be checked. |
| Debt Relief Order | A formal insolvency option for eligible people in England and Wales with limited assets and spare income. | Strict eligibility rules apply; restrictions, public records and the effect on assets or future borrowing require careful review. |
| Individual Voluntary Arrangement | A formal proposal asks creditors to accept scheduled payments or another settlement. | Fees, creditor approval, missed-payment consequences, homeownership and the length of the commitment matter. |
| Bankruptcy | A formal insolvency process may release qualifying debts, subject to legal rules. | Assets, income contributions, housing, employment restrictions and public records must be considered. |
| Scottish statutory solutions | Depending on eligibility, options can include the Debt Arrangement Scheme, a protected trust deed or sequestration. | Scottish law and procedures apply; use an adviser authorised and experienced in Scotland. |
StepChange should explain why its recommendation fits your circumstances and what other realistic options were considered. For wider free-advice routes and practical creditor steps, see SupportFund’s debt help guide.
Rates and thresholds can change. Confirm all current insolvency limits, fees and eligibility rules on GOV.UK, mygov.scot, nidirect or with a regulated debt adviser before acting.
Does contacting StepChange affect your credit score?
Simply asking StepChange for advice does not, by itself, create a credit-account entry. However, missed payments may already have been reported, and a reduced-payment arrangement or formal debt solution can be recorded by creditors or on relevant public registers.
Before accepting a solution, ask when creditors will receive payments, whether contractual payments will be missed and how defaults are likely to be reported. Credit-reference treatment is not the only consideration: protecting housing, essential services and a workable household budget may be more urgent.
Questions worth asking the adviser
- Which debts are included and which must still be paid directly?
- Can interest and charges continue?
- Could creditors pursue court or enforcement action?
- What happens if income falls or essential costs rise?
- Will the solution affect a tenancy, mortgage, vehicle or employment?
- Is it recorded on a public insolvency register?
- Can it be cancelled, and what would happen afterwards?
Do not borrow more simply to maintain an unrealistic plan. If circumstances change, request a budget review before missing essential household bills.
When to use another free advice service
StepChange is not the only source of free debt advice. MoneyHelper, Citizens Advice, National Debtline, local authority welfare teams and specialist housing or legal services may be better placed for particular disputes or urgent proceedings.
Seek specialist help where liability is contested, a debt may be statute-barred, a creditor has obtained security over property, or court enforcement is already under way. Business debts, immigration restrictions, complex benefits overpayments and jointly owned property can also require tailored expertise.
- Housing emergency: contact the council’s homelessness service as well as a debt adviser.
- Council Tax enforcement: speak to the council about liability, reductions, support and recovery options.
- Energy arrears: contact the supplier’s affordability team and ask about grants, repayment plans and vulnerability support.
- Immediate hardship: check local welfare assistance, food support and household grants.
Avoid upfront-fee lead generators. Check who is providing the advice, how they are funded and whether any recommended provider charges fees. For regulated financial services, verify the firm’s permissions on the Financial Conduct Authority register.
SupportFund.co.uk helps households identify emergency assistance, benefit checks and bill-saving options alongside debt advice. Reducing a current bill or securing missing support may make the final debt budget more resilient.
Reviewed on 6 August 2026. Confirm current rates, thresholds and scheme rules on GOV.UK before making a financial or insolvency decision.