Six Stages of debt advice

What happens when you get debt advice

Asking for help with debt can feel like a big step, especially if you have never done it before. Knowing what to expect can make it easier. Here is how the process works when you come to us (or any debt advice service) for support.

The debt advice process has six stages. While the exact wording may vary slightly between different advice organisations, the core steps are the same everywhere.

Stage 1: We look at the full picture

The first thing we do is understand your whole financial situation. This means talking through:

• All the debts you owe and who you owe them to (your creditors)
• Whether anyone is threatening legal action against you
• Your personal circumstances, such as your health, housing situation, or anything else affecting your finances

This is not about judging you. It is about making sure we have the information we need to give you the right advice.

Stage 2: We deal with any emergencies first

If there is anything urgent, we tackle it straight away. Urgent issues include:

• Eviction notices (if you are at risk of losing your home)
• Bailiff action (if bailiffs are due to visit or have already contacted you)
• Disconnection of essential utilities such as gas or electricity

The goal at this stage is to halt any enforcement action and make sure you are safe before we move on to the bigger picture.

Stage 3: We check what you actually owe

We go through each debt to confirm whether you are legally liable for it. We also list all your creditors and the outstanding balances. This stage may involve checking whether:

• A debt is statute-barred, which means it is too old to be enforced through court action
• You are a victim of fraud and should not be responsible for the debt at all

Stage 4: We check your income and spending

We carry out a full benefits check to make sure you are receiving everything you are entitled to. Many people miss out on benefits they could be claiming.

We then create a detailed budget together, listing all your essential spending (rent, food, bills) and non-essential spending, so we can see exactly where your money is going.

Stage 5: We draw up a financial statement

Using all the information from the earlier stages, we prepare a financial statement. This is often done using the Standard Financial Statement (SFS), which is a format used across the UK debt advice sector.

The financial statement calculates your disposable income, which is the money you have left each month after paying for essential living costs. This figure is important because it determines what you can realistically afford to pay towards your debts.

Stage 6: We help you deal with your debts

Finally, we help you choose a strategy for dealing with your debts. We start with priority debts, which are the ones with the most serious consequences if you do not pay. These include:

• Rent or mortgage arrears
• Council tax
• Energy bills

Non-priority debts (such as credit cards, personal loans, or catalogues) are dealt with after priority debts are addressed.

This stage involves negotiating repayment arrangements with your creditors and putting the agreed plan into action. Depending on your situation, this could mean setting up affordable payment plans, applying for a formal debt solution, or exploring other options.

What you can do now

• Do not wait until things get worse. The earlier you get advice, the more options you have.
• Gather any paperwork you have, such as letters from creditors, bank statements, or benefit letters. This helps us move through Stage 1 more quickly.
• Get in touch with us. You do not need to have everything figured out before you contact us. That is what we are here for.

Get help

• Email us at info@youthlegal.org.uk
• Call us on 020 3195 1906
• Fill in our contact form and we'll get back to you

All our advice is free and confidential. You can also find general information about the debt advice process at Citizens Advice or StepChange.