How to Reduce the Stress of Overwhelming Debt

Being in debt that you are struggling to repay can feel overwhelming.  Not only does it cause financial pressure, but it can cause stress, anxiety and even depression.  

Unfortunately, I have been there myself, so I understand the negative feelings that come with not being able to pay back what you owe.  In 2005, I was in what’s termed a “debt crisis”.  

This meant I was stuck in a loop of paying one debt back with another form of debt, essentially shifting my debt around from credit card to credit card, only ever getting further into debt, and eventually having no credit left from which to source the minimum repayments.  

I had maxed out multiple credit cards, had a few bank loans and wasn’t able to get anymore, and had run out of options for where to source all the minimum repayments as I didn’t have enough disposable income after my rent, bills and food expenses, and I was already taking on all the overtime I could at work.

However, there is light at the end of the tunnel.  I was able to get myself out of debt, eventually, and pay every last penny back!

This was thanks to seeking some helpful advice and arranging a debt repayment plan with my creditors while freezing any additional interest with most creditors, so I could get back on track.

Over two decades later, I now have my own house and business, and although I have a mortgage and car loan, these are manageable, and I am in control of my money with more than enough disposable income at the end of the month.

You can turn things around.  Unmanageable debt doesn’t have to be forever.

I know that might not be so helpful while you are stuck in the depths of despair with your own financial difficulties and struggling to pay back the debts you owe, so this article will share tips on how to reduce the stress of overwhelming debt.  

It will also share a range of ways you can seek help for your debt so you can start getting back on track and working towards a better financial future. Whether you’re looking into IVAs from MoneyPlus Advice, want to understand the difference between DPOs and DMPs, are unsure who to contact for support, or are wondering what the government Breathing Space scheme is and how it works, read on to find all the answers to your questions in this comprehensive article.

10 Ways to Reduce the Stress of Overwhelming Debt

First, we’ll focus on 10 methods of how to cope with debt stress.  These tips are to help you feel calmer and reduce your stress levels.  Then, we’ll continue to discuss how and where to seek help.

1. Talk to Someone You Trust

Many people suffer in silence when it comes to their problems, but opening up to a friend, family member, or partner can help ease emotional pressure. Sharing your concerns can provide relief and may even lead to helpful advice.  

Perhaps a friend or family member has also been in the same situation and can provide tips on how they got their finances back on track.

2. Reach Out to Helplines

Perhaps you don’t want to talk to friends and family, or you have no one to talk to?  Or maybe in addition to those you personally know to share your debt issues with, you would also like the help of a trained professional? 

Either way, there are multiple helplines to help you if your mental health is being affected. Free helplines such as Samaritans (116 123) or Mind (0300 123 3393) offer confidential emotional support if debt is affecting your mental health.

3. Get Your Feelings Out

Suppressing stress and anxiety can make things worse. As well as talking to others, writing down your thoughts or journaling your experiences can be therapeutic and reduce stress.

4. Know You’re Not Alone

Believe me, you are not alone!  It may feel lonely and like no one will understand, but millions of people struggle with debt at some point. It’s more common than you think, and help is available.

5. Focus on What You Can Control

Instead of stressing about the entirety of your total debt, take small steps like reviewing your income and essential outgoings to feel more in control.  Search online for budgeting tips for paying off debt, for tips and tricks from others who have found ways to repay their debt faster.

See if there are ways to increase your income to help clear your debt quicker.  Or perhaps you can reduce some of your outgoings to free up some extra money.  And if neither of these are an option, you can control your attitude towards your debt.  

Tell yourself, it’s not forever, I can get myself out of this debt, things will be better in the future.  

It can be hard to be positive when in overwhelming debt, but as well as knowing many millions of people have been in your situation, many millions have also got themself out of the situation and you can too!

6. Make Time for Self-Care

Even if all you can think about is your debt, you still need to make sure you are practising self-care to reduce stress. 

Sitting around constantly worrying about your debt isn’t going to help.  As well as taking action to repay or clear the debt, which we’ll get to in the second half of this article, you need to make sure you have time to try and clear your mind and focus on yourself.

Even a simple walk outdoors or a relaxing bath can lower anxiety levels. Stress relief doesn’t have to cost anything.

7. Limit Exposure to Triggers

If seeing bills or bank notifications spikes your stress, set specific times to review your finances, rather than checking constantly.  Perhaps set one or two afternoons per week to open all of your letters from your creditors and to contact them if needed.  Then, get on with your life and put it out of your mind until the same time next week. 

If that’s too stressful, knowing you have bills and creditor letters to read, then set aside one hour per day, or whatever is needed, to review your bills and make contact, then put it out of your mind as best as you can and get on with the rest of your day until the same time slot the next day.

8. Prioritise Sleep and Nutrition

It can be hard to sleep when feeling anxious and having a mind consumed by your debt worries.  But try your best to create a healthy sleep routine, as being overtired will only add to your stress levels and negatively impact your body and mind.

Check out these tips on how to get a good night’s sleep.

Being physically run down makes stress worse. Try to maintain regular sleep and don’t forget to eat well to support your mental wellbeing.

9. Practice Deep Breathing or Meditation

Mindfulness and breathing exercises can help calm your nervous system when debt feels overwhelming.  Simply stopping what you are doing and taking a few controlled, deep breaths in and out can help to calm your body and mind.

Yoga is also beneficial for mental wellbeing, stress relief and anxiety. 

10. Avoid Unhealthy Coping Mechanisms

Try not to turn to alcohol, overeating, or shopping to feel better — they might bring short-term relief, but they will ultimately make the situation worse. Not only will they cost you extra money you likely don’t have right now, but excess alcohol and unhealthy food can also negatively affect your mind and body.

How and Where to Get Help with Overwhelming Debt

Now that you’re hopefully feeling a little more positive and calm about your debt, what steps can you take to reduce it or start paying it back? Where can you find professional help, and what options are available if your debt feels unaffordable?

Read on — this section will answer all of these questions.

1. Speak to Citizens Advice

Citizens Advice was my first port of call when I realised I couldn’t afford to repay my debts and didn’t know what to do.  They offer free, impartial advice on dealing with debt, benefits, and budgeting.  

For my situation, they were able to review my finances and debts with me and suggest the best course of action and signpost me to the debt charity that offered the solution I needed.

In some towns and cities, Citizens Advice have dedicated business premises, usually with a drop-in setup.  In others, they may have drop-in sessions at local libraries or council buildings on certain days.  Alternatively, they also have a website and helpline (0808 223 1133).

2. Contact StepChange Debt Charity

While Citizens Advice can help with debt issues, they cover a wider range of issues.  For a company that specialises in debt, try well-known UK charity StepChange, which provides free and confidential debt advice, including help with debt management plans.  Contact StepChange on 0800 138 1111.

3. Seek Advice from the National Debtline

Another choice is the National Debtline for support and discovering what might be the best course of action in your personal debt situation. They offer free, independent advice and have lots of online resources and can be contacted at 0808 808 4000.

4. Consider a Breathing Space Period

If you’re feeling overwhelmed and need time to get proper advice, the UK government’s Breathing Space scheme can give you temporary relief from debt pressure. It pauses interest, fees, and enforcement action for up to 60 days, giving you time to seek a longer-term solution.

You’ll need to apply through a debt adviser, and you must continue to engage with the advice process during this time.

You can find full details and check your eligibility on the official government website: Breathing Space – GOV.UK.

5. Check If You’re Entitled to Benefits

If your income is low, you’re a carer, or you have dependents, you might be entitled to benefits that could ease your financial pressure. Many people miss out on support simply because they don’t realise they qualify.

Use an online benefits calculator such as Turn2Us or EntitledTo to check what you’re eligible for. Even a small amount of extra monthly income could make a big difference when you’re dealing with debt.

6. Speak to Your Creditors

If you’re struggling to repay your debts, one of the first steps you should take is to contact your creditors directly. Many lenders are open to helping if you’re honest about your situation early on.

They may be willing to pause or reduce your payments, freeze interest, or offer a temporary repayment plan. 

Most reputable lenders have dedicated debt management teams who can also signpost you to further support or trusted organisations that can help.

7. Explore a Debt Management Plan (DMP)

A debt management plan, often shortened to DMP,  was the right option for my situation back in 2005.  I started a debt management plan, and it took until 2010 for me to complete paying back the entirety of my debt. 

Because I could pay back all of the debt over five years, once the payments and interest rates had been negotiated, it was the best option for my situation.

Some of my creditors froze the interest to help me get my finances back on track. The creditors were paid according to the ratio of the debt I owed, and I was able to pay PayPlan one lump sum per month, and they could divide this between my creditors.  

PayPlan essentially reviewed my financial situation and told me how much I had to pay them each month, based on all my disposable income after rent, bills and a nominal amount for food.

They also took on all communication with my creditors, and if any lenders tried to contact me or harass me (as they often did in my case), I could simply direct them to my account manager at PayPlan, who was now dealing with distributing my debt repayments.

This informal agreement helps you pay off debts at a more affordable rate. Although there are DMP companies that charge a fee, it is often arranged through charities like StepChange or PayPlan for free.

Here is a quick roundup of what a debt management plan is and how it works:

• An informal agreement to repay unsecured debts at a more affordable rate.
• Usually arranged through free debt charities like StepChange or PayPlan.
• You make one monthly payment, which is split between your creditors.
• Interest and charges may be reduced or frozen, but this is not guaranteed.
• You remain responsible for the full debt amount, unlike with an IVA.
• You can leave or adjust the plan at any time — it’s not legally binding.
• Suitable if you have multiple creditors and some money left after essential bills.

8. Look into an Individual Voluntary Arrangement (IVA)

An Individual Voluntary Arrangement, or IVA for short, was another option I considered when tackling my overwhelming debt. However, because I was able to repay the full amount over five years, I went ahead with a Debt Management Plan (DMP) instead. Around the same time, someone I knew chose an IVA. In their case, they couldn’t repay their full debt within five years — not even close — so an IVA was the more suitable recommendation for them.

So, what is an IVA, and how does it differ from a DMP?

An IVA is a formal, legally binding agreement to repay a portion of your debts over a set period, usually five years. At the end of the term, any remaining qualifying debt may be written off. This makes it a viable option for those who can’t afford to repay their debts in full.

Here is a quick roundup of what an IVA is and how it works:

• A legally binding debt solution available in England, Wales, and Northern Ireland.
• Set up and supervised by a Licensed Insolvency Practitioner (IP).
• Pay affordable monthly payments based on your disposable income, usually over 5 years.
• Interest and charges are frozen, and creditors can’t take further action.
• After 5 years, any remaining included debts are written off.
• A Full and Final IVA may be an option if you can make a one-off lump sum payment.
• Must be approved by creditors holding 75% of your debt (by value).

9. Consider a Debt Relief Order (DRO) if You Have a Low Income

If you’re on a low income and have very little in savings or assets, then a Debt Relief Order (DRO) might be the right solution for you. It’s designed for people who genuinely cannot afford to repay their debts and offers a low-cost, formal way to get relief.

DROs are available in England, Wales, and Northern Ireland, and unlike IVAs or bankruptcy, they’re managed by an approved debt adviser rather than an insolvency practitioner.

To be eligible, your total debts must be £30,000 or less, your monthly disposable income must be less than £75, and your assets must be under £2,000. There’s a one-off fee of £90 to apply, making it one of the cheapest formal debt solutions available.

Once approved, creditors can’t take any action for 12 months. If your financial situation hasn’t improved after that time, your included debts will be completely written off.

It’s a useful option if you’re truly unable to repay your debts and need a fresh start without the costs and risks of full bankruptcy.

Here’s a quick summary of how a DRO works:

• A low-cost solution for people with very low income, few assets, and small amounts of savings
• Available in England, Wales, and Northern Ireland
• Managed by an approved debt adviser, not an insolvency practitioner
• £90 one-off fee to apply
• Suitable for debts of £30,000 or less, with under £75 spare income each month
• You must have less than £2,000 in assets
• If approved, creditors cannot take action for 12 months
• After 12 months, your debts are written off if your situation hasn’t improved

10. Understand When Bankruptcy Might Be the Right Option

Bankruptcy is usually a last resort, but for some people, it can offer a clean break and a fresh start by writing off most of their debts. 

However, it comes with serious consequences, so it’s important to seek advice from a bankruptcy advice service before proceeding.

Here is a quick roundup of what bankruptcy is and how it works:

• A formal legal process where most of your debts are written off.
• Available in England, Wales, and Northern Ireland (Scotland has Sequestration).
• You must pay a fee to apply (currently £680 in England & Wales).
• Suitable if you can’t afford to repay your debts in a reasonable time.
• Most debts are cleared, but some (like student loans or court fines) are excluded.
• Assets, including property and high-value belongings, may be sold to repay creditors.
• Stays on your credit file for six years, and you’re usually discharged after one year.
• You must follow restrictions during the bankruptcy period (e.g. borrowing limits).
• You may need to declare that you were bankrupt in future applications for credit, insurance, mortgages, or certain jobs, which can limit future opportunities

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Final Word

Dealing with overwhelming debt is incredibly tough — not just financially, but emotionally too. If you’re feeling the pressure, know that mental health support for debt problems is available. You don’t have to suffer in silence, and you’re certainly not alone.

Whether you’re looking for a UK helpline for debt anxiety, need a self-help guide to debt management, or want to speak to debt relief charities that can point you in the right direction, there is help out there — and much of it is completely free.

The first step is recognising that things can get better. The second is taking action, one small step at a time. From talking to someone you trust to exploring practical debt solutions like a DMP, IVA, or DRO, you can move towards a calmer, more stable future.

You’ve already taken a positive step by reading this article. Keep going. The support is there when you’re ready to reach out.