Debt Solution Comparator - Find Your Best Option
Debt Solution Comparator
Answer a few questions about your financial situation and we'll recommend the most suitable debt solutions for you.
How it works: This tool analyzes your circumstances against the eligibility criteria for different debt solutions and ranks them from most to least suitable.
Takes 2-3 minutes • Completely confidential • Free to use
Understanding the Recommendations
How Solutions Are Ranked
Our comparator evaluates each solution based on:
- Eligibility - Do you meet the requirements?
- Suitability - How well does it match your circumstances?
- Preferences - Does it align with your priorities?
- Practicality - Is it realistic for your situation?
Recommendation Levels
🟢 Highly Recommended: Meets all criteria, strongly suits your situation
🟡 Suitable: Meets criteria, could work well
🟠 Possible: Meets basic requirements but has drawbacks
🔴 Not Suitable: Doesn't meet criteria or poor match
What Each Solution Offers
Individual Voluntary Arrangement (IVA)
Best for: Regular income, £6,000+ debt, want debt write-off
Key features:
- ✅ 60-70% debt written off
- ✅ Legal protection from creditors
- ✅ Keep home (usually)
- ❌ 5-6 year commitment
- ❌ £5,000-£8,000 fees
Requires:
- Minimum £6,000 debt
- £80-100+ monthly disposable income
- Regular income source
- 2+ creditors
Debt Management Plan (DMP)
Best for: Any debt amount, want flexibility, repay in full
Key features:
- ✅ Often free
- ✅ Very flexible
- ✅ Can cancel anytime
- ❌ No debt write-off
- ❌ No legal protection
Requires:
- Some disposable income
- Willing to repay 100%
- Cooperative creditors
Debt Relief Order (DRO)
Best for: Low income, minimal assets, debts under £30k
Key features:
- ✅ Only £90 cost
- ✅ All debt written off
- ✅ Just 12 months
- ❌ Very strict criteria
- ❌ Asset/income limits
Requires:
- Debts under £30,000
- Disposable income under £75/month
- Assets under £2,000
- Not homeowner (effectively)
Bankruptcy
Best for: Large debts, no way to repay, no significant assets
Key features:
- ✅ All debts written off
- ✅ Only 12 months
- ✅ Fresh start
- ❌ Home typically sold
- ❌ Assets taken
- ❌ Serious restrictions
Requires:
- Unable to pay debts
- £680 upfront fee
Full & Final Settlement
Best for: Have lump sum available, want quick resolution
Key features:
- ✅ Quick resolution
- ✅ Partial debt write-off
- ✅ Avoids insolvency
- ❌ Need substantial lump sum
- ❌ No guarantee of acceptance
Requires:
- Lump sum (typically 30-50% of debt)
- Creditor agreement
Example Comparisons
Scenario 1: Medium Debt, Regular Income
Profile:
- Debt: £18,000
- Income: £1,800/month
- Expenses: £1,600/month
- Disposable: £200/month
- Homeowner: Yes (£30k equity)
- Creditors: Threatening court
Recommended Solutions:
-
🟢 IVA - Highly recommended
- Protects home
- Writes off ~£10,000
- Stops creditor action
- Payment: £200/month for 60 months
-
🟡 DMP - Suitable alternative
- More flexible
- No fees
- But pay full £18,000
- Duration: 90 months
-
🔴 DRO - Not eligible
- Over £75 disposable income
- Homeowner
- Over £2,000 assets
Scenario 2: Low Income, Low Debt, No Assets
Profile:
- Debt: £12,000
- Income: £900/month (benefits)
- Expenses: £850/month
- Disposable: £50/month
- Renting
- Assets: £500
Recommended Solutions:
-
🟢 DRO - Highly recommended
- Only £90 cost
- All debt written off
- 12 months complete
- Perfect eligibility match
-
🟠 Bankruptcy - Possible
- Writes off debt
- But £680 cost
- Same outcome as DRO but more expensive
-
🔴 IVA - Not suitable
- Below minimum payment
- Not cost-effective
- Fees too high for debt level
Scenario 3: High Debt, Homeowner
Profile:
- Debt: £45,000
- Income: £2,500/month
- Expenses: £1,900/month
- Disposable: £600/month
- Homeowner: Yes (£80k equity)
- No legal action yet
Recommended Solutions:
-
🟢 IVA - Highly recommended
- Protects £80k home equity
- Write off ~£27,000
- Payment: £600/month
- May need equity release year 5
-
🟡 DMP - Suitable if prefer
- Keep flexibility
- Repay full £45,000
- Free option available
- Duration: 75 months
-
🔴 Bankruptcy - Not recommended
- Would lose £80k equity
- IVA much better option
Common Questions
Q: Why might I be recommended multiple solutions?
A: Different solutions suit different priorities. You may qualify for several options with different pros/cons.
Q: Can I ignore the recommendation?
A: Yes. Recommendations are guidance based on typical scenarios. Your personal preferences matter - speak to advisors about all options.
Q: What if no solution is recommended?
A: Rare, but could mean: 1) Need more info, 2) Informal options better, 3) Your situation needs specialist advice.
Q: Is the recommendation binding?
A: No. This is guidance only. Professional debt advisors will give personalized recommendations after full assessment.
Q: What if I'm between two solutions?
A: Common situation. Key differences usually come down to: debt write-off vs flexibility, or cost vs duration. Speak to advisors about both.
Q: Does the tool consider my credit score?
A: No, because all formal debt solutions damage credit similarly (6 years). Your current score doesn't affect solution choice.
Q: Can I use two solutions together?
A: No. You choose one solution for all your qualifying debts.
Q: What if my situation changes after starting?
A: Most solutions have provisions for changes. IVAs have annual reviews. DMPs are flexible. DRO/Bankruptcy are fixed duration.
Important Considerations
Scotland Residents
If you selected Scotland, note:
Different options available:
- Trust Deed (instead of IVA)
- Sequestration (instead of bankruptcy)
- DAS Debt Payment Programme
Not available:
- IVA (England/Wales/NI only)
- DRO (England/Wales/NI only)
When to Seek Emergency Advice
Contact advisors urgently if:
- Bailiffs visiting
- Court date set
- Eviction threatened
- Utilities being disconnected
- Can't afford essentials
Emergency helplines:
- StepChange: 0800 138 1111
- National Debtline: 0808 808 4000
- Citizens Advice: Find local bureau
Professional Advice
This tool provides guidance but cannot replace professional advice.
Always speak to advisors before deciding because:
- They see your full financial picture
- Can negotiate with creditors
- Know which providers are reputable
- Can spot issues you might miss
- Give FCA-regulated advice
Next Steps Based on Your Result
If IVA Was Recommended
- Check detailed eligibility
- Calculate exact payment
- Understand IVA process
- Contact 2-3 licensed Insolvency Practitioners
- Compare offers
If DMP Was Recommended
- Contact free debt charities:
- StepChange: 0800 138 1111
- National Debtline: 0808 808 4000
- PayPlan: 0800 280 2816
- Prepare income/expense breakdown
- List all creditors
- Discuss creditor cooperation likelihood
If DRO Was Recommended
- Contact approved intermediaries:
- Citizens Advice: Local bureau
- StepChange: 0800 138 1111
- Gather financial evidence
- List all debts and assets
- Complete application with their help
If Bankruptcy Was Recommended
- Understand bankruptcy process
- Consider alternatives first
- Seek debt advice
- Understand implications
- Prepare £680 fee
If Multiple Solutions Recommended
- Review full comparison table
- Consider your priorities
- Speak to debt advisors about pros/cons
- Get quotes/estimates for each
- Make informed decision
Get Professional Help
Free debt advice (highly recommended):
-
StepChange Debt Charity
- Phone: 0800 138 1111
- Online: stepchange.org
- Free, confidential, expert advice
-
National Debtline
- Phone: 0808 808 4000
- Online: nationaldebtline.org
- Free fact sheets and tools
-
Citizens Advice
- Online: citizensadvice.org.uk
- Local bureaux: Face-to-face help
- Free, impartial advice
-
PayPlan
- Phone: 0800 280 2816
- Online: payplan.com
- Free debt management services
Warning: Avoid companies that:
- Charge upfront fees for debt advice
- Pressure you to decide immediately
- Guarantee debt write-off without assessment
- Are not FCA authorized
Remember: This tool provides guidance based on typical scenarios. Your actual best option depends on many personal factors. Always get professional advice before deciding on a debt solution.