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Debt Under £15,000

I have debts under £5,000 do I have any options?

If you owe less than £5,000 in total to at least 2 creditors and don’t have a County Court Judgement against you, then traditionally there were very limited options.

  • For a sum of this size, a consolidation loan might be the answer.
  • If one of your creditors has taken you to court and obtained a Judgement, then you might consider a County Court Administration Order (CCAO)
  • Nowadays, companies will open a Debt Management Plan for you if you owe as little as £2,000 (this used not to be the case, but clearly it is a sign of the times!)

I have debts between £5,000 and £15,000

So long as you owe the money to more than one company, you are eligible for a Debt Management Plan.

Although a sizeable sum of money, if you are able to raise the funds through a loan either because of your earnings or the equity in your house, then you might want to consider a consolidation loan.

Bear in mind that before you take out a loan, it is worth speaking to an advisor. Never take out loans from a doorstep lender to help pay off other debts!

If you owe less than £15,000 in unsecured credit debts and are not a homeowner, you might qualify for a Debt Relief Order.


A consolidation loan

A consolidation loan is simply a loan that you take out and then use to pay off your debts. In other words, you have ‘consolidated’ your debts into one debt i.e. the loan.


A Debt Management Plan

If you don’t have a County Court judgement against you yet and you can’t get a loan, but you’re still struggling to settle your debts, then you might want to consider a Debt Management Plan. Historically, you had to have a minimum of £5,000 of debt and 2 creditors before companies would be willing to take cases on, but nowadays those limits have dropped to as low as £2,000. Go to our section on Debt Management Plan.

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