Begin the new year by breaking free from debt and making a fresh start.
Debt doesn’t happen overnight. It starts with a missed bill here, a short month there… Before we know it, the letterbox rattling can become the stuff of nightmares.
Readers often tell us, debt makes them feel alone. But they’re not. It can happen to any of us. On any budget.
Every debt adviser will tell you the same thing: People will often turn up with bin bags full of unopened letters. Not because they’re lazy, but because they’re terrified.
When money feels out of control, we start avoiding things. We don’t check our bank balance. We don’t open post. We don’t answer calls from unknown numbers.
Over a year or so, three in five people (58%) working with a Quids in! money coach were struggling with debt. Three quarters of those, however, took the chance to do something about it. By the end of the programme, nine in ten people would happily open their post every day too.
If there were prizes, they’d win ‘The Biggest Step Forward’ award. Because nothing takes more guts than facing debt head-on.
1. Step One: Open Your Post (Yes, ALL of It)
Opening all our letters doesn’t make the debt worse, it helps us finally see what’s what. Behind most envelopes are duplicate copies of the same old letter. All we usually need are the first and most recent details that help you understand who you owe and what stage things are at.
Debt charities expect people to arrive with mountains of unopened letters. You’re not the first, and you won’t be judged for it.
2. Step Two: Feel the Fear, Then Call for Backup
You’re not meant to do this alone. Debt advisors sometime seem like miracle workers. But really, they’re just experts who understand the jargon, know the rules and can take the heat off. They negotiate, they calculate, and they shield you from pressure.
Contact a local Citizens Advice office, StepChange debt charity or National Debtline. These services are free, confidential, and on your side.
3. Step Three: Get a Full Picture of Your Money
Before formal debt advice can work its magic, there’s loads you can do to make the process smoother.
Checking we’re on all the benefits we might be entitled to is a good place to start. As of late 2025, there was a reported £24 billion of unclaimed welfare. Surely, we’re in with a shout for some of it, if we’re struggling!
Then it’s about listing all our income and outgoings. We’ll need all this information for a debt advisor anyway, so let’s start there.
We can start a spending diary each day. And we can go through our last few bank statements to get to grips with where it all goes.
Now let’s cut back. Nobody wants to, but temporary cutbacks help us regain control. Be ruthless about cancelling unused or costly subscriptions (eg, to Sky or gyms we don’t use). Switch to social tariff broadband or cheaper insurance, gas or electricity. Start setting limits for shopping and shop around for the cheapest deals. If we’re in the habit of splashing out when money comes in, it’s time to think about taking it steady.
4. Step Four: Take Action!
Once the budget is done and your income is checked, advisers help you sort debts into priority debts, like rent, council tax, and energy bills, and Non-priority debts, like credit cards and loans.
Debt advisors might help by asking creditors to freeze interest or setting up easier repayment plans. They make sure we’re being treated fairly and help us access emergency grants. While we’re putting the plan together, they can even stop or pause enforcement action.
This is the point where most people breathe for the first time in months.
Quids in! has a guide to debt with a list of contact details across the UK for free, confidential advice. Check it out here.
Image: Piotr Swat/Shutterstock
