Debt Awareness Week - Overcoming debt stigma

19 March 2026

Debt awareness week - Breaking the stigma and supporting people in financial difficulty

A lot of people are feeling overwhelmed by money worries right now and it’s not unusual for R3 members to be approached for debt advice. While not all members provide personal insolvency advice, it can be helpful to point people in the right direction for help with financial problems.

Just as the cost-of-living crisis seemed to be easing, a new conflict in the Middle East has ramped up the financial pressure once more. According to the latest official statistics, household debt was 116.9% of disposable income in Autumn 2025 while on 5 January 2026, the debt charity, StepChange had its busiest day in more than a year.

At R3’s personal insolvency forum, which took place earlier in March, we heard from many experts in the field about the challenges facing those supporting people with personal insolvency.

Nicky Fisher, chair of R3’s personal insolvency committee and partner at Herron Fisher, explains: ‘Personal insolvencies are rising in 2026  and sadly, some people will delay getting help until problems become acute, often out of shame or perhaps because they don’t heed the warning signs.’

To mark Debt Awareness Week, we’ve put together some timely advice for anyone who is struggling to keep their head above water as a resource for members to share with individuals facing this difficult situation.

When to get help

If you’re in financial trouble, finding a source of advice and support will ease the burden. However, it’s important to do this sooner rather than later to maximise your options and to look out for and act on these red flags:

• Using your credit cards to pay for basic expenses like food and fuel
• Only making the minimum payment on your cards each month
• Borrowing on one credit card to pay another which is maxed out
• Getting penalised for going over your overdraft
• Missing payment deadlines on bills and debts
• Regularly resorting to ‘buy now, pay later’ schemes online
• Not opening envelopes or answering calls, in case they are about your debts
• Being refused credit because you have a poor credit rating
• Taking out a high interest loan (or being tempted to) to make ends meet
• Not having any savings for a crisis
• Money worries are affecting your mental and physical health 

Your options

Everyone’s situation is different so it’s essential to get expert impartial advice which meets your needs. R3’s comprehensive guide has more information about all the options listed here.

If things haven’t gone too far, you might be able to get on track with one of these informal solutions:

• Setting up a budget – knowing your income and outgoings will allow you to establish how much is left to pay off debts. It will also help you identify unnecessary expenditure such as forgotten subscriptions and memberships. Even if you confirm that your take home pay isn’t enough a budget is an essential starting point when getting support.
• Negotiating with creditors – Banks, credit card providers and utilities companies should have processes in place to support people who are struggling and other creditors will often be willing to listen. You may be able to reduce or pause regular payments but you should contact each company first and ensure they are on board.
• Consolidation and debt management – If you have multiple outgoings each month to different creditors, these schemes allow you to merge them into a single more affordable payment: a consolidation loan or a debt management plan (which is only for creditors who agree). However, they can also leave you in a worse position if you fall behind with repayments so you should get independent advice first. Any company which offers to put a debt management plan together for you must be authorised by the Financial Conduct Authority (FCA)
• If your money difficulties can’t be resolved informally or you’re insolvent (you don’t have the funds to pay back a debt when it’s due) there are formal, legal options:

• Breathing space (the Debt Respite Scheme) – Introduced in 2021, this provides legal protection from creditors’ enforcement action, interest and charges for up to 60 days. There’s also a mental health crisis breathing space with stronger protection for those receiving mental health crisis treatment which continues during treatment for the crisis plus 30 days.

• Individual Voluntary Arrangement (IVA) – A binding agreement with creditors which might include making regular payments, selling assets, remortgaging a property and invariably includes some debt write off.  You do need at least 75% of your creditors to be in favour of an IVA for it to be approved. An IVA typically lasts five or six years if it based on monthly contributions and is overseen by a licensed Insolvency Practitioner (IP). Creditors won’t be able to pursue you once the IVA is in place and when the IVA is successfully completed you’ll be released from the remaining unsecured debt.

• Debt Relief Orders (DRO) – You can apply for a DRO if you owe less than £50,000, have assets of under £2,000 and a car worth no more than £4,000.  You must have less than £75 surplus income each month. A DRO means being subject to restrictions for one year in exchange for the debt being written off.

• Bankruptcy – You can apply for bankruptcy (for a fee) or a creditor can apply to have you declared bankrupt if you owe them more than £5,000. It involves surrendering control of your assets to a trustee, either the Official Receiver or a licensed IP who might try to sell these to pay creditors (including your home in some cases) and expect you to make regular contributions from your surplus income. The restrictions are stricter than under an IVA. You’ll usually be discharged from bankruptcy after a year when your debts are written off.

Not all options are suitable for everyone, so it is essential that you take advice before proceeding with any of the above options.  With IVAs, DROs and bankruptcy your name and details will be published in the Insolvency Register and there will be a significant impact on your credit rating for several years.

Where to get help

Nicky Fisher continued: ‘The stigma surrounding debt can be a real barrier for many people so admitting to yourself that you have a problem is a brave and necessary step. The next is to get good quality, impartial advice. Take care as there are unregulated operators out there, making misleading claims,  willing to exploit people at their most vulnerable in pursuit of a quick profit. However, the good news is that there are many sources of free and impartial advice available for those in financial distress.’

Simon Trevethick, Head of Communications at debt charity Step Change, explained:

 “Money remains one of society’s most closed-off topics. For many people, even acknowledging they're in financial difficulty can feel daunting and when it comes to problem debt, the situation can be even harder. But the truth is, open conversations about your finances can make a huge difference.

 “Our recent polling revealed that problem debt affects one in two people, so breaking down the stigma around it is essential. When we reduce the shame and silence around debt, we remove one of the biggest barriers stopping people from seeking the help they deserve.

 “Many people have no concept of debt advice or do not fully understand what it entails. Free debt advice does not impact your credit score, and is an independent, impartial process which provides you with a detailed assessment of your finances and how we can support you on a road back to financial health.”

Along with debt charities like StepChange, the Debt Advice Foundation and the National Debtline other sources of support include insolvency practitioners (IPs), Citizens Advice and MoneyHelper. R3 members are all qualified, licensed and regulated IPs who work to the Insolvency Code of Ethics. They’ll listen to you without judgement and explain your options.

Find an R3 member on our website.