Free help with debt: what it is and how it works

Resources · Life and money · 5 min read Starting out

Key points

• Many countries have free, confidential debt help run by non-profits or governments.
• Trained advisers look at your whole situation and explain your options.
• You stay in control. Nothing happens without your agreement.
• Be wary of anyone charging high upfront fees or making big promises.

What free debt help is

If your debts feel out of control, you don’t have to sort them out on your own. Free debt help exists for exactly this. In many countries, including the US, UK, Canada and Australia, there are services that help people with debt at no cost.

Who runs them? Often non-profit organisations and charities, funded by donations, grants or government. Sometimes government services, either national or run by states, provinces or local councils. And sometimes community organisations, such as legal aid centres, community centres and some consumer protection bodies.

They share a few things. They’re free or very low cost. They’re confidential. And they’re focused on your interests, not on selling you something.

You’ll find a list of services on our free debt help page.

What an adviser does

A debt adviser is trained to look at your whole money picture and explain the options open to you. They don’t judge. They’ve heard it all before, and they know debt can happen to anyone.

A session usually starts with your income and spending, to see what you can realistically afford. Then comes listing all your debts, with balances, interest rates and any arrears.

From there, the adviser helps you work out which debts are most urgent. Some, like rent, mortgage, energy bills and taxes, can have more serious consequences if they’re missed. So it helps to know where to focus first.

Then they explain your options in plain language, pros and cons included. If there are forms or letters to deal with, they can help with those too.

Some services work by phone. Some online or by web chat. Some face to face.

The kinds of options they may explain

What’s on the table depends a lot on where you live and on your situation. Broadly, an adviser might talk you through a few kinds of option.

The simplest is a budget-based plan you run yourself, with a clear order for paying your debts.

Another is a formal repayment plan. You make one monthly payment, and it’s shared among the people you owe. In some countries the adviser’s service can set this up for you.

Then there are legal insolvency options, such as bankruptcy or formal arrangements under insolvency law. These are serious steps with long-term effects. They’re designed for situations where debts can’t realistically be repaid.

Advisers can also help with specific problems, like court papers, letters from bailiffs or collection agencies, or benefits you might be missing out on.

They lay out the trade-offs. You make the call.

What to expect when you reach out

Feeling nervous is normal. Here’s what usually happens:

1. First contact. You’ll be asked a few questions about your situation. Say as much or as little as you like at first.
2. Gathering information. You may be asked for recent statements, bills and payslips. Don’t have everything? That’s fine. They can still help.
3. A full review. The adviser goes through your income, spending and debts.
4. Options and next steps. They explain what’s available. You can take time to think.

You won’t be told off. Free services don’t charge for advice, though some charge a small fee if you set up a formal repayment plan through them. And nothing gets agreed without your say-so.

How free debt help differs from paid services

Some companies charge for debt help. They may advertise heavily and promise to fix everything fast. A few are legitimate. Others charge high fees for things free services do at no cost, or steer you towards options that earn them money.

Be careful if a service asks for large upfront fees before anything has happened, or promises to wipe out your debt or stop all the calls overnight. Pressure to sign up quickly is another red flag. So is being told to stop paying your debts and pay them instead, without a clear explanation. And if they’re vague about who they are or how they’re funded, walk away. Spotting money scams covers more of the signs.

Free services exist precisely so you don’t have to pay for this help. Try a free one first.

When to reach out

Earlier is usually easier. You don’t have to wait until you’ve missed a payment.

People often get in touch when they’re only managing the minimums and the balance just isn’t moving. Or when they’re putting essentials on credit, or borrowing to repay other debts. Some reach out after missing a payment, or when they can feel one coming. Letters or calls about arrears are another common trigger.

And sometimes it’s simply that debt is wrecking their sleep, their health or their relationships. That’s reason enough.

Common questions

Is free debt help really free?

Services run by non-profits, charities and governments are free or very low cost, and confidential. Be wary of anyone asking for large upfront fees before anything happens.

Does talking to a debt adviser commit me to anything?

No. You stay in control, and nothing is agreed without your say-so. Some options an adviser may explain, such as insolvency, have long-term effects, and they can tell you what those are where you live.

When should I get free debt help?

Earlier is usually easier, and you don’t need to wait until you’ve missed payments. Many people reach out when they’re only managing minimums, using credit for essentials, or just feeling the strain.

Try it

To see where your debts stand today, find your Freedom Date. It’s a handy number to take along to a free debt help service.

General information only, not financial advice. Your situation is your own.