StepChange: Free Expert Debt Advice for UK Residents
How StepChange works, what to expect from the process, and when to call them.
Who Are StepChange?
[StepChange](https://www.stepchange.org) is the UK's largest debt charity. Founded in 1993 (originally as the Consumer Credit Counselling Service), they provide free, impartial, expert advice to anyone struggling with debt. They help over 600,000 people per year, making them the most experienced debt advice provider in the country. They are regulated by the [FCA](https://www.fca.org.uk/) and authorised to set up formal debt solutions including Debt Management Plans, Individual Voluntary Arrangements, and Debt Relief Orders — all at zero cost to you.
StepChange is not a commercial debt management company. They never charge fees. Their funding comes from "fair-share" contributions from the financial services industry — the very lenders you owe money to. This model means StepChange's advice is genuinely impartial. They have no incentive to recommend one solution over another because they do not profit from any of them.
When to Contact StepChange
You do not need to be in crisis to contact StepChange. In fact, the earlier you reach out, the more options you have. Contact them if:
- You are missing payments or struggling to meet minimum payments
- Your debt feels unmanageable even if you are technically keeping up
- You are using credit to cover basic living costs like food, utilities, or rent
- You are being contacted by debt collectors and are unsure of your rights
- You are considering a balance transfer, consolidation loan, or borrowing to cover existing debts
- You simply want professional guidance on whether your current approach is optimal
StepChange advisers deal with debt every single day. They have seen situations far worse than yours, and they will not judge you. Their only goal is to help you find the most suitable path forward.
What to Expect: The Process
Step 1: The Online Debt Advice Tool
The fastest way to get started is through StepChange's online advice tool. This takes approximately 20 minutes and walks you through:
- Your monthly income (wages, benefits, any other income)
- Your essential spending (rent/mortgage, council tax, utilities, food, transport)
- Every debt you owe (balances, APRs, minimum payments)
The tool generates a Standard Financial Statement (SFS) — a standardised picture of your finances that all major UK creditors have agreed to accept as a fair basis for negotiation.
Step 2: Your Options
Based on your SFS, StepChange will recommend one or more options:
- Self-help budgeting if your debts are manageable with better planning
- Debt Management Plan (DMP) — reduced monthly payments to all creditors, typically interest-frozen
- Individual Voluntary Arrangement (IVA) — a legally binding 5-6 year plan, with remaining debt written off
- Debt Relief Order (DRO) — for debts under £30,000 with minimal assets
- Breathing Space — a 60-day legal freeze on interest and enforcement
- Bankruptcy advice — when other options are not viable
Step 3: Implementation
If a formal solution is appropriate, StepChange handles everything: contacting creditors, setting up the plan, distributing payments, and managing ongoing communication. You make a single monthly payment to StepChange, and they divide it proportionally among your creditors.
StepChange vs Commercial Debt Companies
A critical warning: the debt management industry includes both charities and commercial companies, and telling them apart is not always easy. Commercial debt management companies advertise heavily online and on TV. They often charge upfront fees (sometimes £1,000+) and monthly management fees (10-15% of your payment).
This means less of your money actually goes to your creditors, and you stay in debt longer. The FCA has repeatedly warned consumers about this practice.
StepChange provides the exact same services — DMPs, IVA referrals, DRO applications — at zero cost. There is no financial reason to use a commercial provider. If a company asks you to pay for debt advice, walk away and call StepChange instead.
How to check: Legitimate free debt advice providers include StepChange, National Debtline (0808 808 4000), Citizens Advice, and PayPlan. All are free. All are FCA-regulated.
Contact Information
- Phone: 0800 138 1111 — free from all UK mobiles and landlines, Monday to Friday 8am-8pm, Saturday 8am-4pm
- Online: stepchange.org — the online advice tool is available 24/7
- Webchat: Available through the StepChange website during phone hours
If you are deaf or hard of hearing, StepChange offers a text relay service. If English is not your first language, they can arrange interpreter support.
What Happens to Your Credit Score?
This is a common fear, and it deserves a direct answer. A Debt Management Plan will appear on your credit file, and it will lower your credit score while active. However, if you are already missing payments, your credit score is already damaged. A DMP actually stops the damage from getting worse by replacing missed payments and defaults with a structured, agreed repayment plan.
Here is the timeline most people experience:
| Phase | Credit Impact |
|---|---|
| Before DMP | Missed payments, defaults, rising arrears — score dropping monthly |
| During DMP | Stable. Payments recorded as "partial" but no new defaults. Reduced interest means faster balance reduction. |
| After DMP completion | Score begins recovering. Most negative markers fall off after 6 years. Many ex-DMP clients reach "good" credit within 2-3 years of completion. |
The key insight: a DMP does not ruin your credit — it stops already-damaged credit from getting worse, and it creates a foundation for recovery. If you are worried about your credit score, check it for free at ClearScore or Credit Karma before speaking to StepChange.
Mental Health and Debt
Debt and mental health are deeply connected. Research from the Money and Mental Health Policy Institute shows that people in problem debt are three times more likely to have a mental health condition. The relationship goes both ways — debt causes stress, anxiety, and depression, and poor mental health makes it harder to manage finances.
StepChange understands this connection. Their advisers are trained to work with clients experiencing mental health difficulties, and they can:
- Adjust the pace and format of advice sessions
- Help you apply for Breathing Space (a 60-day legal freeze on creditor action) — with an extended version specifically for people receiving mental health crisis treatment
- Flag mental health issues to creditors, who have a duty under FCA guidelines to treat vulnerable customers with additional care
- Refer you to specialist mental health support services
If you are struggling with both debt and mental health, you are not alone, and there is no shame in needing help with both. Contact the Samaritans on 116 123 (free, 24/7) if you need immediate emotional support.
How DaysBack and StepChange Work Together
DaysBack and StepChange complement each other perfectly. StepChange helps you find the right formal solution and negotiates with creditors. DaysBack helps you visualise progress and stay motivated through what can be a multi-year payoff journey.
- Before calling StepChange: Use DaysBack to list all your debts with balances and APRs. Having this information ready speeds up the advice process significantly.
- During a DMP: Track your DMP payments in DaysBack and watch your days deleted counter climb. Seeing tangible progress sustains motivation through the long middle phase of a debt plan.
- After completing a solution: Use DaysBack's tools to stay debt-free. The Lifestyle Striker helps identify spending habits that could lead back into debt, and the emergency fund guidance in our £1,000 Shield guide prevents the debt-emergency-debt cycle from restarting.
What to Prepare Before Calling StepChange
Having the right information ready makes your first call faster and more productive. Gather these before you dial:
- A list of all your debts. For each one, note the creditor name, current balance, APR/interest rate, and minimum monthly payment. If you have already entered your debts into DaysBack, this information is on your dashboard.
- Your monthly income. After tax. Include wages, benefits (Universal Credit, Child Benefit, PIP, etc.), any self-employment income, and any other regular money coming in.
- Your essential monthly spending. Rent/mortgage, council tax, utilities, food, transport to work, childcare, insurance. Be honest — the adviser needs accurate figures to build a realistic plan.
- Recent statements or letters from creditors. Especially any that mention court action, default notices, or demands for full payment.
- Details of any assets. Savings accounts, vehicles, property (if you own your home). This affects which solutions are available to you.
If you cannot gather all of this, call anyway. A partial picture is better than no picture, and the adviser can help you fill in gaps during the conversation.
Next Step
If your debts feel unmanageable, call StepChange today on 0800 138 1111 or start an online assessment at stepchange.org. There is no cost, no commitment, and no judgement.
Information is the first step.
We hope this guide helped clarify how free expert debt advice for uk residents works in the UK. When you feel ready to see how these numbers apply to your own situation, our visualisation tools are here to help. They are free to use and designed to give you a clear, honest look at your path forward.