MONEY · CANT PAY MY BILLS HELP UK
What to Do If You Can’t Pay Your Bills
Practical steps to take if you are struggling to meet monthly payments.
Quick summary
- Act early and don’t ignore the problem
- Prioritise essential bills first
- Contact creditors and request breathing space
- Check eligibility for benefits and support
- Free debt advice is available nationwide
For information only
Falling behind on bills can feel overwhelming, but early action significantly improves outcomes. Most creditors would rather agree a plan than pursue enforcement. This guide explains how to prioritise payments, contact creditors, access support schemes, and protect yourself legally. This is general information, not personal financial advice.
Step 1 — Don’t Ignore the Problem
Ignoring letters or emails often escalates matters.
Missed payments can lead to:
- Late fees
- Default notices
- Collections activity
- Credit file damage
- Court action (in some cases)
Early communication is usually the safest approach.
Step 2 — Prioritise Essential Payments
Essential or “priority” bills usually include:
- Rent or mortgage
- Council tax
- Energy
- Water
- Court fines
- TV licence
- Child maintenance
Non-priority debts often include:
- Credit cards
- Loans
- Overdrafts
- Buy Now Pay Later
Keeping a roof over your head and essential services active is usually the first priority.
Step 3 — Contact Creditors
When contacting a creditor:
- Explain your situation clearly
- Provide income and expenditure details if requested
- Ask about temporary payment plans
- Ask for interest and charges to be frozen
Under FCA rules, regulated lenders must treat customers in financial difficulty fairly.
If you feel you are not being treated fairly, you can complain.
Financial Ombudsman Service
Website: https://www.financial-ombudsman.org.uk
Phone: 0800 023 4567
Email: complaint.info@financial-ombudsman.org.uk
Step 4 — Breathing Space Scheme
The Breathing Space Scheme provides temporary legal protection from creditor action.
Standard Breathing Space lasts 60 days.
Mental Health Crisis Breathing Space can last longer.
Access is arranged via a debt adviser.
More information:
https://www.gov.uk/options-for-paying-off-your-debts/breathing-space
Step 5 — Check Benefits and Grants
You may be eligible for:
- Universal Credit
- Council Tax Reduction
- Discretionary Housing Payment
- Energy support schemes
- Local welfare assistance
Check eligibility via:
Citizens Advice can also help assess benefit entitlement.
Step 6 — Get Free Debt Advice
Free, confidential advice organisations include:
StepChange Debt Charity
Website: https://www.stepchange.org
Phone: 0800 138 1111
National Debtline
Website: https://www.nationaldebtline.org
Phone: 0808 808 4000
Citizens Advice
Website: https://www.citizensadvice.org.uk
Phone: 0800 144 8848
These organisations can help you:
- Create a budget
- Negotiate with creditors
- Consider Debt Management Plans
- Explore formal insolvency options if necessary
Avoid High-Cost Quick Fixes
Be cautious of:
- Payday loans
- Unregulated debt “write-off” firms
- Fee-charging debt management companies
Always check FCA authorisation:
Looking After Your Wellbeing
Financial stress can affect mental health.
If you feel overwhelmed:
Samaritans
Website: https://www.samaritans.org
Phone: 116 123
Email: jo@samaritans.org
For urgent mental health support, contact NHS 111 or emergency services.
Key takeaways
- Early communication reduces escalation
- Protect priority bills first
- Ask for breathing space or payment plans
- Free debt advice is available nationwide
- Avoid high-cost borrowing when under pressure
Will missing one payment ruin my credit score?
It can have an impact, but early communication and recovery are more important long term.
Can creditors take me to court immediately?
Usually not immediately. There is typically a process involving notices before enforcement.
Is debt advice free?
Yes. Charities like StepChange and National Debtline offer free, independent advice.
What if I can’t even afford a small repayment?
A debt adviser can help you explore options such as token payments or formal solutions.
Should I ignore collection calls?
It is generally better to communicate and explain your circumstances.
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