How to Manage Unsecured Debt in the UK: 2025 Guide to Debt Solutions
Understanding Unsecured Debt in the UK
Debt shouldn’t keep you up at night, primarily debts that fall under the Consumer Credit Act 1974.
You might think it’s easy for us to say, but once you understand the subject of debt, you’ll feel empowered to tackle your situation head-on without fear. This is where we come in at The Real Debt Guy. We’re here to provide the tools to help you understand your situation and fight your battle, starting with your unsecured debts. Let's go...
Quick Solutions for Unsecured Debt Problems in the UK
If you’re stressed, have a good understanding of Unsecured Debt, and want to find solutions, let's cut to the chase:
- This is the starting point for any unsecured debt situation - read this Statute Barred Debt Guide.
- One method for managing your unsecured debt is to use the Token Payment Method.
- If you have debt with a debt collector, the Debt Collectors & Token Payments Guide is essential for you.
Be sure to return to read the rest of this page afterwards.
Types of Unsecured Debt Covered in the UK
This section covers all Unsecured Debt. This includes Credit Cards, Store Cards, Overdrafts, Personal Loans, Payday Loans, and other debts covered under the Consumer Credit Act 1974.
Is Your Debt Statute-Barred in the UK?
Your first question should always be,
"Is my debt over 6 years old?"
Why is this an important question? If your debt is over six years old and you haven’t communicated about it, made payments towards it, or gone to court, it may be statute-barred and can be handled with a single, straightforward letter.
As mentioned earlier, our Statute Barred Debt Guide should always be your starting point. We explain what statute-barred debt means and how to tell if your debt is statute-barred. If, after reading, you are sure that your debt is statute-barred, download this letter.
Statute-Barred debt
What to Do If Your Debt Is Not Statute-Barred
Don’t worry if your debt is not statute-barred; the next step is to gain a better understanding of it.
Token Payments Under FCA Rules in the UK
If you’re struggling with your unsecured debt, don’t worry; we've got you covered. You are protected by Section 7.3 of the Financial Conduct Authority Handbook. This means you can make token payments towards your debts when you are struggling financially. We got you covered in this Token Payments for Unsecured Debt article, which will help you decide whether token payments may be suitable for you.
Ah, but what if your debt is already with a debt collector? You can relax; all of the above applies with a slight alteration because the Financial Conduct Authority also regulates debt collectors. That means they must also follow Section 7.3 of the Financial Conduct Authority Handbook.
You guessed it, we have that covered, too. If your debt is with a debt collector and you want to understand how to make affordable token payments, visit our page on Debt Collectors & Token Payments.
Token Payment Method
Alternative Debt Solutions in the UK
Is this your only option?
Definitely not. There are other options for you to consider. We have compiled a few articles to help you understand the other options before tackling your debt. Let’s be clear: this does not mean that we recommend them; we believe it’s essential for you to make the best decision for yourself. You can’t do that without knowing all the options available.
Always read The Real Debt Guy’s final thoughts at the end of our articles to see our true opinion. We are here to support you, not creditors and debt collectors.
How Unsecured Debt Affects Your Credit Score in the UK
You may be concerned about your credit rating, but should that be your primary concern when struggling financially? You should ask yourself that question. We have discussed this topic in one of our many articles, which is included below.
Do You Need an Income & Expenditure Form in the UK?
You might assume you must, but it’s not that straightforward. You can find out when and why you may choose or not to complete one by reading Income & Expenditure Forms Explained.
Other options to consider
The Bottom Line: Regain Control Over Unsecured Debt in the UK
Unsecured consumer debts fall under the jurisdiction of the Financial Conduct Authority. As we mentioned at the beginning of this page, they should not cause you stress or keep you awake at night. Just understand that there are solutions. You must accept that you may lose your credit facilities and see a reduction in your credit rating for up to six years. This is a small price to pay for not worrying and stressing every day.
Check out our recommended reading below to find answers to many of the questions our community members frequently ask.
Our information is simplified for anyone to understand and is based on information provided by the Financial Conduct Authority (FCA), the UK Government Website, and other reputable sources.
Solving your issue is just the beginning. Explore our mindfulness, guides, and articles sections to help you gain a new perspective, avoid debt issues in the future, and grow from this experience.
