Updated for 2026

The festive season is over, and if your bank balance is looking worse for wear, you are not alone. Millions of UK households overspend during December, and January can feel like a financial reckoning. Good post-Christmas money management is the difference between a rough few months and getting back on solid ground quickly. This guide walks you through practical steps to take control of your finances after the holidays.

Why Post-Christmas Money Management Matters

According to the Money and Pensions Service, the average UK household spends over £1,100 on Christmas. Credit cards, buy now pay later schemes and overdrafts often fill the gap when savings run out. Without a clear plan to manage that debt, interest charges and late payment fees can turn a manageable shortfall into a serious problem.

Post-Christmas money management is not just about paying off what you owe. It is about building habits that stop the cycle repeating itself year after year. Whether you are dealing with a few hundred pounds on a credit card or a more significant debt problem, acting early gives you the best chance of staying in control.

Step One: Work Out What You Owe

Before you can fix anything, you need the full picture. Sit down and list every debt: credit cards, store cards, Christmas borrowing, overdrafts, buy now pay later balances and any money owed to friends or family. For each one, note the total balance, the interest rate and the minimum monthly payment.

If more than 20% of your take-home pay is going towards debt repayments (excluding your mortgage or rent), that is a warning sign. At that level, you are likely to struggle without making meaningful changes to your spending or seeking professional help.

Once you have the numbers in front of you, prioritise. Priority debts like council tax, rent and energy bills should always come first, as failing to pay these can lead to serious consequences including bailiff action or disconnection. After those are covered, focus on the debts with the highest interest rates to reduce the overall cost.

Tackling Credit Card Debt After Christmas

Credit cards are the go-to funding source for Christmas spending, and January is when the bills arrive. If you are sitting on a balance with a high interest rate, a 0% balance transfer card could save you a significant amount. In 2026, some providers are offering introductory periods of up to 24 months, though you will typically pay a transfer fee of 1% to 3%.

If a balance transfer is not an option (perhaps your credit score will not stretch to it), focus on paying more than the minimum each month. Minimum payments are designed to keep you in debt for as long as possible, with interest eating into every pound you repay. Even an extra £20 or £30 a month can make a noticeable difference over time.

Store cards and buy now pay later debts deserve special attention. Store card interest rates are often well above 30% APR, and missed BNPL payments can now affect your credit file following changes introduced by the Financial Conduct Authority. Pay these off as quickly as you can.

Cutting Your Outgoings to Free Up Cash

Earning more money is one way to solve a debt problem, but for most people, cutting outgoings is faster and more realistic. January is a natural time to review what you are spending and where the waste sits.

Start with subscriptions. Streaming services, gym memberships, app subscriptions and magazine deliveries all add up. Cancel anything you are not actively using. Then look at your utility bills. The energy price cap set by Ofgem changes quarterly, so checking whether a fixed deal or a different supplier could save you money is always worth doing.

Other quick wins include:

• Switching to direct debit payments for household bills (most providers offer a discount)
• Submitting regular meter readings to avoid estimated bills
• Shopping around for car insurance, home insurance and broadband when your contracts are due for renewal
• Meal planning to cut food waste and supermarket spending
• Using cashback sites and apps for purchases you would make anyway

Small changes across multiple areas compound quickly. Saving £50 a month across your bills frees up £600 a year to put towards debt or an emergency fund.

Dealing With Your Overdraft

Living in your overdraft is expensive. Since the FCA’s overdraft reforms, most banks now charge a single annual interest rate on arranged overdrafts, typically around 35% to 40% APR. That is more expensive than many credit cards.

If you are regularly dipping into your overdraft, consider whether a 0% money transfer card could help you clear it. These cards let you transfer cash to your current account, effectively converting your overdraft into a 0% debt that you can pay down over time. Alternatively, speak to your bank about a formal repayment plan to reduce your overdraft limit gradually.

Mortgage and Rent: Your Biggest Monthly Cost

Your mortgage or rent is likely your largest single expense. If Christmas spending has left you short, this is the payment you absolutely cannot miss.

Homeowners should review their mortgage deal. If you are on your lender’s standard variable rate, you are almost certainly paying more than you need to. Remortgaging to a fixed or tracker deal could reduce your monthly payments significantly. With interest rates having shifted considerably over the past few years, speaking to a mortgage broker about your options makes sense.

Renters who are struggling may want to consider whether a cheaper property is realistic. Moving is disruptive, but if your rent is consuming too large a share of your income, it may be the most effective way to create breathing room in your budget. At a minimum, make sure your rent is paid by direct debit to avoid late payment charges.

Building an Emergency Fund for Next Year

Once your immediate debts are under control, the smartest thing you can do is start building an emergency fund. Even £500 set aside can prevent you from reaching for credit cards the next time an unexpected bill lands. The MoneyHelper guidance suggests aiming for three months’ essential expenses, but any amount is better than nothing.

Consider opening a separate savings account specifically for Christmas spending. Putting aside £50 a month from February onwards gives you £550 by November, enough to cover most of the festive costs without borrowing.

When to Seek Free Debt Advice

If your debts feel unmanageable, or if you are missing payments on priority bills like council tax or rent, do not ignore the problem. Free, confidential debt advice is available from organisations including:

• StepChange Debt Charity
• Citizens Advice
• MoneyHelper

These services can help you understand your options, negotiate with creditors and set up formal debt solutions like a Debt Management Plan or an Individual Voluntary Arrangement if appropriate.

This article provides general information only and does not constitute financial advice. If you need advice tailored to your circumstances, please contact a qualified debt adviser.

For help with council tax debt or any other financial concern, get in touch with our team for free, confidential guidance.

Updated for 2026

Christmas borrowing might seem like a quick fix when December rolls around, but taking on debt to fund the festive season can leave you struggling well into the new year. With the cost of living still putting pressure on household budgets across the UK, borrowing to cover presents, food and decorations is a risk that millions of families face every winter. If you are already behind on bills or council tax, adding more debt to the pile only makes things harder.

Why Christmas Borrowing Is on the Rise

Research from MoneyHelper (formerly the Money Advice Service) shows that UK households now spend an average of over £1,100 each Christmas. For families already dealing with tight finances, that figure is daunting. Credit cards, buy now pay later schemes and short-term loans have made it easier than ever to spend beyond your means during December.

In 2025, the Financial Conduct Authority reported that over 3.6 million people in the UK used high-cost credit over the Christmas period. Many of those borrowers were already in some form of financial difficulty before they took on extra debt. The pattern repeats itself every year: spend in December, struggle in January, and fall further behind on priority bills like council tax.

The Real Cost of Christmas Borrowing

Short-term borrowing might cover the cost of a few extra gifts, but the interest charges and repayment terms can turn a small loan into a much bigger problem. Payday loans, for example, still carry annual percentage rates that can exceed 1,000%. Even credit cards with 0% introductory offers become expensive if you cannot clear the balance before the promotional period ends.

If you are already behind on council tax payments, taking on Christmas debt pushes you further from a manageable position. Councils can apply for a liability order, pass your debt to enforcement agents (bailiffs), or even apply for an attachment of earnings. These are serious consequences that a few extra presents simply are not worth.

It is also worth knowing that council tax is classified as a priority debt. That means it should always be paid before credit cards, personal loans or store cards. If Christmas borrowing causes you to miss council tax instalments, you could face enforcement action while still paying off festive spending.

Alternatives to Borrowing at Christmas

There are practical steps you can take to avoid falling into the Christmas borrowing trap:

• Set a realistic budget in October or November and stick to it
• Use savings rather than credit wherever possible
• Suggest a Secret Santa arrangement with family or friends to reduce the number of gifts
• Take advantage of sales and cashback offers throughout the year
• Consider homemade gifts or experience-based presents that cost less

If you have already borrowed and are finding it difficult to keep up with repayments, do not ignore the problem. Early action gives you more options. You can read our guide on spreading the cost of Christmas for more budget-friendly ideas.

How Christmas Debt Affects Your Council Tax

When money is tight in January, council tax is often the first bill that gets pushed aside. Unlike a credit card company, your local council will not send you gentle reminders for months on end. The collection process moves quickly: a missed payment triggers a reminder, then a final notice, and then a court summons. Once a liability order is granted, the council has the power to instruct bailiffs, deduct money from your wages, or even begin bankruptcy proceedings in extreme cases.

According to GOV.UK, councils collected over £39 billion in council tax during 2024/25. Despite that figure, arrears continue to climb year on year. A significant portion of those arrears build up between January and March, exactly when families are recovering from Christmas spending.

Getting Help With Christmas Borrowing Debt

If you have borrowed over Christmas and are now struggling to meet your regular outgoings, you have options. Free debt advice is available from several organisations across the UK, including StepChange, Citizens Advice, and National Debtline.

At Council Tax Advisors, we specialise in helping people who have fallen behind on council tax. We can negotiate with your council on your behalf to arrange affordable repayment plans that take your full financial situation into account. Our service is free, impartial, and designed to take the pressure off so you can focus on getting back on track.

You might also benefit from reading our guide on payday loan alternatives if you are considering borrowing again.

Christmas Should Not Cost Your Financial Stability

The festive season is meant to be enjoyable, not a source of stress that lasts for months. If you are tempted to borrow this Christmas, take a step back and consider whether the short-term benefit is worth the long-term cost. And if you have already borrowed and things have spiralled, do not wait until enforcement action begins. Getting advice early is always the better option.

This article is for general information only and does not constitute financial advice. If you need help with council tax debt or other financial difficulties, please contact a qualified adviser.

Updated for 2026

The thought of bailiffs at Christmas is enough to ruin anyone’s festive season. If you are behind on council tax payments and worried about enforcement agents turning up at your door over the holidays, you are not alone. Thousands of households across England and Wales face this anxiety every December. The good news is that you have legal rights, and there are clear rules about when and how bailiffs can visit. This guide explains everything you need to know about bailiffs at Christmas so you can protect yourself and your family.

Can Bailiffs Visit on Christmas Day?

The short answer is no. Under the Taking Control of Goods Regulations 2013, enforcement agents (the official term for bailiffs) are not permitted to visit your property on Christmas Day, Good Friday, or Sundays. This is a legal restriction, not just a recommendation.

For council tax debts specifically, bailiffs are also banned from attending between 9pm and 6am. The National Standards for Enforcement Agents reinforce that visits should only take place at reasonable hours. If a bailiff breaches these rules, you have grounds to complain.

However, this does not mean you are completely free from enforcement action during the wider Christmas period. Bailiffs can still visit on Christmas Eve, Boxing Day, and throughout the rest of December (excluding Sundays). Being aware of these dates helps you plan and prepare.

Your Rights When Bailiffs at Christmas Come Knocking

Dealing with bailiffs at Christmas is stressful, but understanding your rights puts you in a much stronger position. Here are the key protections you should know about:

• Bailiffs must give you at least seven clear days’ written notice before their first visit (this is a legal requirement under the 2013 Regulations)
• For council tax debt, bailiffs cannot force entry on their first visit. They can only enter peacefully, meaning you must open the door or give them permission
• Once a bailiff has gained peaceful entry, they may return and force entry on subsequent visits, so think carefully before letting them in
• Bailiffs cannot take essential household items such as a cooker, fridge, beds, bedding, or clothing
• They cannot take items that belong to someone else in your household
• You have the right to ask for identification and proof of the debt

If you feel a bailiff has acted improperly, you can make a formal complaint through GOV.UK. Keep a written record of every visit, including dates, times, and what was said.

Bailiff Fees and Costs You Should Know About

Enforcement action adds fees to your original council tax debt. As of 2026, the regulated fee structure for council tax enforcement is:

• Compliance stage: £75 (added when the enforcement notice is sent)
• Enforcement stage: £235 (added when a bailiff visits, plus 7.5% on debts over £1,500)
• Sale stage: £110 (added if goods are removed for sale, plus 7.5% on debts over £1,500)

These fees are set by law and bailiffs cannot charge more than the regulated amounts. If you believe you have been overcharged, seek advice immediately. Our guide to free debt advice can point you in the right direction.

How to Handle Bailiffs at Christmas: Practical Steps

If you are expecting a bailiff visit during the Christmas period, here is what you can do to protect yourself and your household:

Before they arrive

Contact your local council directly and ask to set up a repayment plan. Most councils would rather agree a payment arrangement than send bailiffs, as enforcement is costly for them too. If you act before the bailiff visits, you may be able to avoid enforcement fees altogether.

If they knock on your door

You do not have to open the door. For council tax debt, a bailiff cannot force entry on their first visit. Speak through the door or a window. Ask them to show their identification and a copy of the enforcement notice. Take note of their name, badge number, and the enforcement company they represent.

If you cannot afford to pay

Contact a free debt advice service such as StepChange or MoneyHelper. These organisations can help you negotiate with your council and may be able to get the bailiff action recalled. You can also read our guide to dealing with bailiffs for more detailed advice.

Council Tax Debt and the Cost of Living

The cost of living crisis continues to push more families into council tax arrears. With energy bills, food costs, and mortgage rates all rising, council tax is often the bill that slips first. According to the Ministry of Justice, council tax enforcement cases remain one of the largest categories of debt enforcement in England and Wales.

Christmas makes this pressure worse. The combination of extra spending on gifts, food, and socialising means household budgets are stretched to breaking point. If you are already behind on council tax, the festive period can feel overwhelming.

It is important to know that falling behind does not make you a bad person. Millions of households across the UK struggle with council tax debt, and there are solutions available. Speaking to an adviser early gives you the best chance of resolving the situation before it escalates to enforcement action.

What Happens After Christmas

If a bailiff has visited before Christmas but you did not answer the door, they are likely to return in January. This gives you a window to take action:

• Call your council and request a repayment arrangement
• Contact Council Tax Advisors for free, impartial guidance
• Gather evidence of your financial situation (bank statements, payslips, benefit letters)
• Check if you are entitled to council tax reduction or exemptions you may have missed

Taking action in January, before the bailiff returns, puts you back in control. Our team has helped thousands of people in exactly this situation, and in many cases we can get bailiff action recalled entirely. You can also read about managing debt repayments for practical budgeting tips.

Mental Health and Bailiff Stress at Christmas

The anxiety of expecting bailiffs at Christmas takes a real toll on mental health. Research consistently shows a strong link between debt and depression, and the festive season can amplify feelings of shame and isolation. If debt is affecting your wellbeing, please reach out for support. Our article on council tax debt and depression has useful advice and helpline numbers.

You do not have to face this alone. Free, confidential advice is available from organisations like StepChange (0800 138 1111) and the National Debtline (0808 808 4000). Speaking to someone is the first step towards finding a way forward.

This article provides general information about bailiffs and council tax debt. It is not financial or legal advice. If you need help with a specific debt situation, please contact a qualified adviser.

Updated for 2026

Sale and Rent Back Schemes: What You Need to Know in 2026

If you are struggling with mortgage debt or facing repossession, you may have come across sale and rent back schemes as a potential way out. These arrangements let you sell your home to a company or investor at a reduced price, then stay on as a tenant paying rent. While this can sound like a lifeline, there are serious risks you should understand before committing. This guide covers everything you need to know about sale and rent back in 2026, including FCA regulations, your rights, and the alternatives available.

How Does Sale and Rent Back Work?

A sale and rent back arrangement works in a fairly straightforward way. You sell your property to a firm or private investor, usually at a price well below market value. In return, you sign a tenancy agreement allowing you to continue living in the property as a rent-paying tenant.

The money from the sale is typically used to clear your mortgage and any other secured debts. The appeal is obvious: you get to stay in your home while wiping out debts that were causing serious financial stress.

However, the discount on the sale price can be significant. Most sale and rent back firms offer between 60% and 80% of market value, which means you lose a substantial amount of equity. You also lose ownership of the property permanently.

FCA Regulation of Sale and Rent Back Schemes

The Financial Conduct Authority (FCA) has regulated sale and rent back firms since 2010, following widespread problems with unregulated operators during the 2008 financial crisis. Any firm offering sale and rent back must be authorised by the FCA and follow strict rules designed to protect consumers.

Under the current regulations, sale and rent back firms must:

• Provide an independent valuation of your property carried out by a qualified surveyor with a duty of care to you
• Give you a clear written offer showing the purchase price alongside the independent valuation
• Offer a tenancy of at least five years (unless you specifically request a shorter term in writing)
• Clearly explain the rent you will pay, when it can increase, and what happens if you fall behind
• Give you a 14-day cooling-off period after making a written offer, during which they cannot contact you
• Recommend that you seek independent legal and financial advice before proceeding

If a firm approaches you with a sale and rent back offer and is not FCA-authorised, treat it as a serious warning sign. You can check the FCA Financial Services Register to verify whether a company is properly regulated.

Risks of Sale and Rent Back You Should Know About

Even with FCA regulation, sale and rent back carries real risks that you need to weigh carefully:

You will no longer own your home. This is permanent. Once the sale completes, you have no ownership stake in the property.

Your rent could rise over time, both during and after the fixed term of your tenancy. If rent becomes unaffordable, you may end up in the same financial difficulty that led you to consider the scheme in the first place.

After the fixed term ends, you may have to leave. There is no guarantee you can stay indefinitely. The new owner has the right to end your tenancy once the agreed term expires.

If the company or investor buying your home gets into financial trouble, the property could be repossessed by their lender. In that scenario, you could lose your home regardless of your tenancy agreement.

Selling at a significant discount means you receive far less than you would on the open market. This can affect your ability to manage debt repayments elsewhere, or limit your options if you later consider bankruptcy or another insolvency solution.

Alternatives to Sale and Rent Back in 2026

Before going down the sale and rent back route, it is important to explore every other option. There are several alternatives that may help you keep your home or deal with debt more effectively:

Talk to Your Mortgage Lender

If you are behind on mortgage payments, your lender may agree to a revised payment plan. Many lenders would rather help you catch up than pursue repossession, which is costly for them too. Options include extending the mortgage term, switching to interest-only payments temporarily, or adding arrears to the balance.

Get Free Debt Advice

Organisations like MoneyHelper, StepChange, and Citizens Advice offer free, confidential debt advice. They can look at your full financial picture and suggest formal debt solutions such as a Debt Management Plan (DMP), Individual Voluntary Arrangement (IVA), or Debt Relief Order (DRO). You can also read our guide to free debt advice in the UK.

Sell on the Open Market

If keeping your home is not realistic, selling on the open market will usually get you a much better price than a sale and rent back deal. Even after paying estate agent fees and moving costs, you will typically come away with more money to clear your debts and start fresh.

Mortgage Rescue Schemes

Some local authorities and housing associations run mortgage rescue schemes for households at risk of homelessness. These vary by area and eligibility, but they are worth investigating. Your local council or a housing advice service can tell you what is available.

What to Do if You Are Considering Sale and Rent Back

If you are seriously thinking about a sale and rent back scheme, take these steps first:

• Get an independent valuation of your property so you know the true market value
• Check the FCA register to confirm the firm is authorised
• Seek independent legal advice before signing anything
• Speak to a free debt advice service to check if there is a better option
• Read the tenancy agreement carefully, especially clauses on rent increases, maintenance responsibilities, and what happens at the end of the fixed term
• Take the full 14-day cooling-off period to think it through

If something feels off, or a firm pressures you to make a quick decision, walk away. Legitimate operators will give you time and encourage you to get independent advice.

How Council Tax and Other Priority Debts Fit In

If your financial difficulties include council tax arrears, it is worth understanding that council tax is a priority debt. This means it should be dealt with before non-priority debts like credit cards or personal loans. Selling your home through a sale and rent back scheme will not automatically resolve council tax debt unless the proceeds are enough to cover everything you owe.

If council tax arrears are part of the problem, getting help early can prevent the situation from escalating to bailiff action. Your local authority may agree to a payment arrangement, and many councils have hardship funds or council tax reduction schemes for people on low incomes.

Important Disclaimer

The information on this page is for general guidance only and does not constitute financial or legal advice. Every situation is different, and you should seek independent professional advice before making decisions about your home or debts. Council Tax Advisors provides free information to help you understand your options, but we cannot recommend specific courses of action.

Updated for 2026

The mansion tax has been one of the most debated property taxation proposals in recent UK political history. First championed by the Liberal Democrats and later adopted by Labour ahead of the 2015 general election, the idea of imposing an additional annual levy on homes valued at £2 million or more sparked fierce debate across Westminster, the media, and kitchen tables nationwide. While the mansion tax was never implemented, the conversation it started about how we tax high-value property remains as relevant as ever in 2026, particularly as council tax bills continue to rise and calls for council tax reform grow louder.

What Was the Mansion Tax?

The mansion tax was a proposed annual charge on residential properties valued above £2 million. Labour leader Ed Miliband made it a central part of his 2015 election manifesto, promising to use the revenue, estimated at around £1.2 billion per year, to fund the NHS. The policy would have introduced banded charges similar to council tax, with homeowners of the least expensive qualifying properties paying around £3,000 per year. Properties at the very top end would have faced significantly higher charges.

The Liberal Democrats, led by Nick Clegg, had actually proposed a version of the mansion tax before Labour adopted it. Their version was intended to replace what they called the “regressive” council tax system, arguing that wealthy homeowners contributed too little compared to those in modest homes.

Labour’s proposal included protections for asset-rich but income-poor homeowners. Anyone earning less than £42,000 per year could defer payment until the property was sold. This was designed to address concerns about pensioners living in homes that had appreciated in value beyond their means.

Why the Mansion Tax Was Never Introduced

The Conservatives won the 2015 general election outright, meaning the mansion tax never made it into law. Prime Minister David Cameron and Chancellor George Osborne had consistently opposed the policy, describing it as an attack on aspiration and a threat to London’s property market.

Boris Johnson, then Mayor of London, was one of the most vocal critics. He argued that approximately 80 per cent of properties affected would be in London and the South East, making it effectively a tax on the capital rather than a nationwide measure. Estate agents Savills reported at the time that the mere threat of a mansion tax was already discouraging buyers from completing on properties above the £2 million threshold.

Instead of a mansion tax, the Conservative government significantly reformed Stamp Duty Land Tax (SDLT) in December 2014, introducing a progressive system that increased costs for buyers of expensive properties. For many, this achieved a similar outcome without the annual burden of an ongoing tax.

Council Tax and Property Taxation in 2026

The question of how the UK taxes property has not gone away. Council tax in England and Wales is still based on property valuations from April 1991, now 35 years out of date. A home worth £68,000 in 1991 might be worth £350,000 or more today, yet it sits in the same band as it did three decades ago. This creates enormous unfairness, with some homeowners in modest areas paying proportionally more than those in expensive postcodes.

In 2026, council tax bills across England have risen again, with many local authorities applying the maximum permitted increase to plug gaps in funding for social care, housing, and local services. The average Band D council tax bill in England now exceeds £2,100 per year, placing real strain on household budgets.

For those already struggling with council tax arrears, these annual increases only make things harder. Council tax debt remains the most common reason people contact debt advice services, and local authorities continue to use enforcement agents (bailiffs) to collect unpaid bills.

Mansion Tax vs Council Tax Reform: What Are the Options?

The mansion tax debate highlighted a fundamental problem with property taxation in the UK: the system is outdated and widely seen as unfair. Several alternatives have been proposed over the years:

Revaluation of council tax bands: This would mean reassessing every home in England based on current market values. While widely supported by economists and think tanks, no political party has committed to a full revaluation. The political risk is enormous, as millions of households could see their bills increase overnight. Wales completed a revaluation in 2003, and Scotland has not revalued since 1991 either.

Proportional property tax: Some have suggested replacing council tax entirely with a proportional levy based on current property values, similar to how many other countries handle property taxation. The Resolution Foundation and other policy groups have modelled versions of this.

A land value tax: This would tax the value of land rather than the buildings on it, encouraging efficient use of land and discouraging speculative empty plots. It has support from economists across the political spectrum but remains politically difficult to implement.

None of these proposals have gained enough traction to become government policy, and council tax in its current form remains largely unchanged since 1993.

How Rising Property Taxes Affect UK Households

Whether through council tax, stamp duty, or potential future reforms, property taxation has a direct impact on household finances. For homeowners of expensive properties, stamp duty already acts as a de facto mansion tax. Buying a £2 million home in England now attracts over £150,000 in stamp duty, a substantial sum that has cooled the top end of the market.

For ordinary households, council tax remains the bigger concern. If you are struggling with council tax payments, there are several steps you can take:

• Check whether you are in the correct council tax band by using the Valuation Office Agency’s online tool. You may be paying more than you should
• Apply for Council Tax Reduction (previously Council Tax Benefit) if you are on a low income or receiving benefits
• Contact your local authority to arrange a manageable payment plan if you have fallen behind
• Seek free debt advice from a qualified adviser who can help you understand your options
• Check if you qualify for a single person discount (25% off) or any other exemptions

The Future of Property Taxation

While the mansion tax itself is unlikely to return to the political agenda in its original form, the issues it raised have not been resolved. Council tax remains regressive, property wealth continues to grow faster than wages in many parts of the country, and local authorities need increasing amounts of funding to provide essential services.

The Labour government elected in 2024 has so far avoided committing to council tax revaluation or any form of mansion tax, though pressure from think tanks, charities, and opposition parties continues. Any future reform will need to balance fairness with political reality, something that has defeated every government since council tax was introduced in 1993.

For now, if you are concerned about your council tax bill or have received a summons for unpaid council tax, getting advice early is essential. Organisations like StepChange, MoneyHelper, and Council Tax Advisors can help you understand your rights and find a way forward.

Disclaimer: The information on this page is for general guidance only and does not constitute financial or legal advice. If you need specific advice about your circumstances, please contact a qualified adviser.

Updated for 2026

Free Debt Advice: How to Get Help With Debt in the UK

If you are struggling with debt, getting free debt advice is one of the most important steps you can take to regain control of your finances. Whether you owe money on council tax, credit cards, energy bills, or personal loans, there are trusted organisations across the UK that offer free, confidential support. You do not have to face debt alone, and acting sooner rather than later can open up options you might not know exist.

The Scale of Debt in the UK in 2026

Personal debt remains a serious issue for millions of households across the UK. According to The Money Charity, total unsecured consumer debt reached over £2,000 per adult in 2025, and the cost of living crisis has pushed many families further into the red. Rising energy prices, rent increases, and higher food costs have all contributed to a situation where even people in full-time work are finding it difficult to keep up with repayments.

Council tax debt is one of the fastest-growing forms of arrears in England and Wales. Local authorities issued over 2.8 million liability orders for unpaid council tax in 2024/25, according to government statistics. Many of those affected are on low incomes and may qualify for a council tax reduction or exemption without realising it.

The problem is not limited to any single group. Young people, families, pensioners, and self-employed workers are all affected. What matters is not how you ended up in debt, but what you do about it.

Where to Get Free Debt Advice in the UK

There are several well-known organisations that provide free debt advice to anyone who needs it. These services are regulated by the Financial Conduct Authority (FCA) and are entirely free to use:

• StepChange Debt Charity: one of the largest debt advice providers in the UK, offering phone and online support
• Citizens Advice: local and national support covering debt, benefits, housing, and more
• MoneyHelper: the government-backed service (formerly the Money Advice Service) offering free guidance on all types of debt
• National Debtline: a free phone and online service run by the Money Advice Trust
• Council Tax Advisors: specialist help with council tax arrears, liability orders, and bailiff action

These services can help you understand your options, create a budget, negotiate with creditors, and set up a repayment plan that works for your situation.

Council Tax Debt: Why You Should Act Quickly

Council tax is a priority debt, which means it carries more serious consequences than credit card or catalogue debt if left unpaid. Your local council can apply to a magistrates’ court for a liability order, which gives them the power to take enforcement action. This can include instructing bailiffs (enforcement agents) to visit your property, making deductions directly from your wages or benefits, or even starting bankruptcy proceedings.

The good news is that councils are required to follow a clear process before taking enforcement action, and there are opportunities at every stage to negotiate a payment arrangement. If you contact your council early enough, most will agree to a manageable repayment plan. Many local authorities also offer council tax reduction schemes for people on low incomes or receiving certain benefits.

Free Debt Advice and Your Options for Dealing With Debt

Once you speak to an adviser, they will assess your full financial situation and explain the options available to you. Depending on your circumstances, these might include:

• A Debt Management Plan (DMP): an informal agreement to repay your debts at a reduced monthly amount
• An Individual Voluntary Arrangement (IVA): a formal, legally binding agreement that typically lasts five to six years
• A Debt Relief Order (DRO): available if you owe less than £50,000 and have minimal assets or disposable income
• Bankruptcy: a last resort for serious debt, but one that can provide a fresh start
• Breathing Space: a government scheme that gives you 60 days of legal protection from creditor action while you get advice

The Breathing Space scheme, introduced under the Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020, is particularly useful. During the 60-day period, most creditors cannot charge interest, apply fees, or take enforcement action against you. A mental health crisis breathing space can last even longer. Your debt adviser can apply on your behalf.

How to Prepare Before Seeking Debt Advice

Getting the most out of a debt advice appointment is easier if you prepare a few things in advance. You do not need to have everything perfectly organised, but having a rough idea of the following will help your adviser give you accurate guidance:

• A list of who you owe money to and roughly how much
• Your monthly income (wages, benefits, pensions, or any other source)
• Your regular outgoings (rent/mortgage, council tax, utilities, food, transport)
• Any letters or notices you have received from creditors, bailiffs, or your council

Do not worry if some of the figures are estimates. The important thing is to make a start. Many people put off seeking help because they feel overwhelmed or ashamed, but debt advisers are experienced, non-judgmental, and used to helping people in all kinds of situations.

Protecting Yourself From Debt Scams

Be cautious of companies that charge fees for debt advice or debt management services. Legitimate debt advice is always free. If a company asks for an upfront payment, or tries to pressure you into signing up for a paid service, walk away. The FCA maintains a register of authorised firms at fca.org.uk, and you can check whether any organisation offering financial services is properly regulated.

Some companies also advertise “government-backed” debt write-off schemes that do not exist. If something sounds too good to be true, it almost certainly is. Stick to the established, trusted services listed above.

Taking the First Step Towards a Debt-Free Future

The hardest part is often making that first call or filling in that first online form. Once you do, you will find that the weight lifts significantly. A qualified adviser can help you see a clear path forward, and many people are surprised to learn that their situation is more manageable than they feared.

If you are dealing with council tax arrears, or if bailiffs have already been in contact, do not ignore the problem. Early action gives you the widest range of options and the best chance of reaching an affordable agreement.

Remember: free debt advice exists for a reason. You have already taken the first step by reading this. Now take the next one.

This article is for general information purposes only and does not constitute financial advice. If you need help with your specific circumstances, please contact a qualified debt adviser or one of the free services listed above.