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What is your approximate debt?

Hint... don’t forget to include Bailiff enforcements, council tax, credit cards, HRMC and rent arrears.

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  • One monthly payment

    Ensure that your debt is costing you as little as possible

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    Get your life back in control with a fresh start

Why 121 Money solutions?

  • No more phone calls or letters from creditors
  • Write off debts over £5000
  • One tailored monthly payment
  • No obligation, friendly advise

Example Debt

Credit Card: £8,000
Store Card: £3,000
Bank Overdrafts: £1,000
Personal Loans: £8,000
Payday Loans: £4,000
Council Tax: £1,000
Furniture Credit: £1,000
Total Debt: £26,000

IVA Example

Payments before IVA: £680.00 Per month
Payments after IVA: £206.00 Per month

*This is an example - The reduction in monthly debt payments compared to IVA payments is down to each person’s individual circumstances.

Affordable Reduced Monthly Payments

No more Debt Collector Phone Calls and Letters

No upfront fees. Become debt free

What is your approximate debt?

Hint... don’t forget to consider these commonly missed debts when calculating your debt level: Bailiff enforcements, council tax, HRMC and rent arrears.

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An IVA is a legally binding agreement between you and your creditors to repay all or part of your debt in monthly instalments over a fixed time period, usually five years. This period can be longer dependant on each person’s personal circumstances.

An IVA covers most debts, so its scope is wider than the DM. There are no minimum or maximum debt requirements, but most creditors will not agree to an IVA unless you owe at least owe £7000.


  • Over a fixed period or up to 5 years
  • Single monthly payment
  • Can include tax arrears and utility debts
  • Legal protection
  • Guaranteed interest and charges frozen


  • Must have a minimum level of debt to qualify
  • You will be added to the insolvency register
  • Some employers do not allow an employer to have an IVA
  • Will damage credit rating
  • Cannot include debts secured against property, such as your mortgage, or any hire purchase plans
  • If you owe less than £7000 an IVA might not be the most appropriate solutions

If you have County Court Judgements (CCJ) against you – and you have two or more debts of less than £5,000 in total – you could apply to the county court for an administration order. As with an IVA, an administration order is legally binding and allows you to pay off your debts in regular instalments over an agreed period.


  • The court decides a fair amount and monthly payment
  • No upfront fees
  • One monthly payment for up to 3 years
  • You will not lose your house


  • Debts must be less than £5000
  • The court can require you to sell any valuable posessions
  • Payments normally match your monthly disposable income
  • The court takes a 10% monthly fee

If you cannot afford to make any payments towards your debts, you could ask your creditors to simply write off the outstanding amount. Of course, they will only agree in exceptional circumstances, perhaps if you are ill or on an exceptionally low income. It is always worth asking though.

You could apply for a debt relief order (DRO). They can be a cheaper alternative to bankruptcy.

However, there are strict criteria:

  • you're unable to pay your debts
  • your qualifying debts are not more than £30,000
  • you’ve got no more than £75 left over each month after you’ve paid your usual household expenses
  • you don’t own your home
  • other savings or things of value you own, called assets, are worth no more than £2,000 (some assets are ignored when working out the value, for example, basic household items and tools you need to do your job)
  • it's been at least six years since your last DRO was made unless it was revoked - check here why a DRO might be revoked (opens in new tab)
  • you aren’t going through another formal insolvency procedure, such as bankruptcy or an individual voluntary arrangement (IVA)
  • you've lived, had a property, or worked in England or Wales in the last three years

If you have a vehicle worth less than £2,000, you don’t have to include it in your assets. If your vehicle is worth more than £2,000, you don't have to include it in your assets if it's been adapted because you have a disability. You can only exclude one vehicle from your assets and you can't exclude it if you only use it for work.


  • Most debts can be included within the DRO
  • Debt from unsecured creditors can take no further action against you once the DRO has been made


  • Not available to homeowners
  • Secure creditors can still take action towards you
  • Details of your DRO will be kept on the Individual Insolvency Register
  • Your credit rating will be affected
  • Other savings or things of value you own, called assets, can not be worth more than £2,000

This will depend on your personal circumstances and level of debt.

Bankruptcy is when an individual obtains a court order via a petition where they seek relief from some or all their debts. You must have owed at least £5000 to a creditor. Bankruptcy must be a last resort as many restrictions are put on the individual like being unable to obtain credit or act as a director of a company.

Bankruptcy Pro's

  • You may be debt-free in just 12 months
  • You won't need to deal with your creditors
  • Creditors can't take any further action against you.
  • You won't have to give up all your belongings

Bankruptcy Con's

  • You won't be in control of your assets or finances
  • Your bank account may be frozen
  • You might lose your home
  • You might lose your job
  • Your bankruptcy is listed in the Insolvency Register.
  • You will have to abide by a number of strict rules
  • You may still have to make payments to creditors if you have disposable income

This will depend on your personal circumstances and level of debt.

A DMP (Debt Management Plan) is a payment plan aimed at allowing to pay a monthly affordable sum to your creditors. The plan is managed by a debt solution practice (regulated by the FCA). They will set up your payment plan and work with your creditors to get interest and charges frozen. The plan needs to demonstrate that you can repay your debt over a reasonable period of time.

DMP Pro's

  • Unaffordable debt payments are replaced with an affordable monthly payment
  • Your DMP provider deals with your creditors
  • If interest and charges are frozen, you only repay the capital sum

DMP Con's

  • You cannot incur credit over £500
  • Not all creditors will participate
  • Creditors are not obliged to freeze interest and charges
  • You must make consistent payments

The system is slightly different in Scotland. If you have enough money, you can repay your debts through the Scottish government’s debt arrangement scheme (DAS). The DAS must be set up by an approved adviser. You then pay back the money you owe in instalments over a reasonable time.


  • You have more time to pay and you can pay what you afford monthly until the debts are paid
  • Protects you from enforcement action
  • You won't have to declare yourself insolvent
  • Your debts will not increase


  • Must have more than one debt
  • You must live in Scotland
  • You will be on the scheme until your debts are paid off.
  • It will affect your credit rating
  • You will incur fees

A trust deed is the Scottish equivalent of an IVA, although there are some differences. The maximum term is usually 48 months and you must have debts of at least £5,000 to qualify. When the Trust Deed is completed any remaining debts are usually written off.


  • All creditors are paid with one monthly payment
  • Normally lasts for a period of 4 years
  • You only pay monthly your disposable income


  • It will affect your credit rating
  • You may have to sell or remortgage your property
  • Only unsecured debts are covered

MAP bankruptcy gives you a fresh start by writing off debts that you can't repay within a reasonable time. It is aimed at people with a low income and not many assets and is cheaper and more straightforward than sequestration (or full administration bankruptcy). You can only apply for MAP through an approved money advice organisation.

What debts can go into an IVA?

  • Personal Loans
  • Credit & Store cards
  • Council Tax Arrears
  • Overdrafts
  • Payday Loans
  • Catalogues
  • Overdue Bills
  • Business debt

Try to Avoid Debt

Many banks or building societies offer short-term payment holidays to those in financial hot water – but they will be much less sympathetic if you only get in touch after you have started missing payments.

If your debts are really getting on top of you, though, a debt charity such as StepChange is the best place to look for help. It can help you to decide between a variety of ways out, including setting up a debt management plan and even going bankrupt.

One way to do this is to consolidate several balances onto a credit card that charges 0% on balance transfers – or pay off your debts with one low-rate loan.

What is your approximate debt?

Hint... don’t forget to consider these commonly missed debts when calculating your debt level: Bailiff enforcements, council tax, HRMC and rent arrears.

This web site is operated by 121Money Ltd. Registered in the UK, 14881276. Registered address: Dam House Astley Hall Drive, Tyldesley, M29 7TX. Registered with the Information Commissioner's Office ZB601444.

All debt solutions should be very carefully considered. At 121 Money we do not provide debt advice. If you complete the form and provide permission to be referred, we will pass your details onto a regulated debt advice solution provider. All the partners we use are regulated by the Financial Conduct Authority to provide debt counselling.

The debt solution practice will contact you by telephone, email, WhatsApp or by text assuming you have consented. They will go through your financial position including your income and expenditure and will provide advice on the most appropriate solutions to deal with your debt. All calls are recorded for compliance purposes and for your protection.

Fees may apply if you enter into a debt solution including an Individual Voluntary Arrangement (IVA) or Debt Management Plan with one of our trusted partners. The fees will be carefully explained to you and will be detailed in the documentation you will receive.

All debt solutions will affect your ability to obtain credit for at least 6 years from the approval of the debt solutions.

Initial advice is always free, but fees will apply if solutions such as an IVA or a debt management plan are appropriate. If you do enter into an IVA, your details will appear on a public register. Full details will be discussed with you prior to you consenting to enter into any debt solution.

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