I'm working but I can't afford my debts — what can I do?
At a glance
- You are not alone — rising costs mean many people in work struggle with debt.
- Pay priority bills first: rent or mortgage, council tax, energy and court fines.
- Breathing Space can pause interest, charges and creditor contact for 60 days.
- Options include token payments, a debt management plan, a DRO or an IVA — free help can explain which suits you.
Priority and non-priority debts
- Priority debts have the most serious consequences, like losing your home or energy supply.
- Credit cards, loans, overdrafts and catalogues are usually non-priority.
- Never borrow more to pay a priority bill without getting help first.
Check your income
- You may get Universal Credit or Council Tax Reduction even while working.
- Check you are on the right tax code and claiming everything you are owed.
Common questions
- Will my employer find out?
- Usually not. Most debt solutions do not involve your employer, except an attachment of earnings order.
- Does Breathing Space affect my credit file?
- No, Breathing Space itself is not shown on your credit file.
Useful links
Want to talk it through? It's free and confidential.