Debt solutions · 4 min read
Is debt help really free? How debt advice firms are paid
Free debt advice is available from charities, but many debt firms are paid through IVA fees, DMP fees or commission. How each type of debt help is funded, what you should never pay for, and how to check a firm.
- Fact-checked
- Against official sources
- Last updated
- Next review due
- April 2027
- Applies to
- England and Wales
- Sources
- 3 listed on this page
Independent guidance, not a government service. This page is general information about the law in England and Wales, not financial or legal advice. Debt solutions have fees, risks and consequences. For free, impartial advice, contact MoneyHelper or a debt charity.
The short answer
Free, impartial debt advice is available from charities and services such as MoneyHelper, StepChange, National Debtline and Citizens Advice. Commercial debt firms are usually paid in other ways: IVA fees taken from your payments, fees for debt management plans, or commission. You should never pay for Breathing Space or a Debt Relief Order. Whoever you use should be FCA-authorised and explain all your options.
How different types of debt help are funded
| Type of help | Who pays | Cost to you |
|---|---|---|
| Debt charities and MoneyHelper | Government funding, grants and creditor contributions | Free |
| Breathing Space | Arranged by a debt adviser | Free |
| Debt Relief Order | Arranged by an approved intermediary | Free |
| Debt management plan from a charity | Funded by creditors | Free |
| Debt management plan from a commercial firm | You, through set-up or monthly fees | Varies |
| IVA | You, through fees taken from your payments | Usually several thousand pounds over the IVA |
| Bankruptcy | You pay the government’s application fee | £680 |
| Lead generators and introducers (like us) | The firm they introduce you to | Free to you |
How we’re paid
We’re open about this. We are not a debt advice provider and we do not give debt advice. With your permission, we introduce you to an FCA-authorised debt advice firm that can discuss your situation and your options. We may receive a fee from that firm for the introduction. This does not affect the advice you receive or what you pay. Read how we are paid.
What you should never pay for
- Breathing Space – always free.
- A Debt Relief Order – there’s no application fee, and approved intermediaries don’t charge.
- Upfront fees for an IVA before it’s approved – be cautious if asked.
- “Fees to stop bailiffs” – contacting the bailiffs, the creditor or a free adviser costs nothing.
How to check a debt firm
- Check the FCA register at register.fca.org.uk. Debt advice firms must be authorised.
- Check that insolvency practitioners are licensed if you’re considering an IVA.
- Ask how they’re paid and whether they receive commission.
- Ask whether they’ve considered all your options, including free ones like a DRO.
- Watch for red flags: “government scheme” claims, promises to write off a fixed percentage, or pressure to sign quickly. The FCA has warned about these.
Free debt advice services
Free, impartial debt advice
You can get free, confidential debt advice from these organisations. They don't charge and can help with Breathing Space, DROs and dealing with bailiffs.
- MoneyHelper debt advice locator (government-backed Money and Pensions Service)
- StepChange Debt Charity
- National Debtline
- Citizens Advice
If you’ve seen adverts promising to wipe out your debts, read can debt be written off? The legitimate ways first.
Frequently asked questions
Why do some firms offer “free” IVA advice?
The advice itself may be free to you, but the firm is usually paid through IVA fees or commission if you go ahead. That’s why it’s important they explain all your options.
Is StepChange really free?
Yes. StepChange is a charity and doesn’t charge for advice or its debt management plans.
Do I have to pay to get Breathing Space?
No. Breathing Space is free and must be arranged by a debt adviser.
Sources
How we wrote this article
- Research: written from primary sources such as legislation.gov.uk, GOV.UK and the Insolvency Service, then fact-checked by a second member of our team. The sources are listed above.
- Checked: last checked on . Next review due April 2027, or sooner if the rules change.
- Scope: applies to England and Wales. If you live in Scotland or Northern Ireland, read our Scotland and Northern Ireland guide. It is general information, not personal advice.
- Independence: we are not a government website or service, and we are not connected to any council, court or enforcement company.
- Money: we may receive a fee if we introduce you to a debt advice firm. This doesn't change what we write. How we're paid.
Spotted something wrong or out of date? Email hello@howtostopthebailiffs.co.uk and we'll check it. Read our full editorial policy.