2025 UK Guide

Personal Loan Debt Help — Freeze Interest with Breathing Space

Stop collection pressure, avoid CCJs and explore IVA, DMP or DRO. If suitable, we start with Breathing Space to pause interest, charges and most enforcement while your plan is built.

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Reviewed by: UK Debt Support Team • Last updated

Struggling with a Personal Loan? Protect Yourself First.

If repayments are unaffordable, we focus on protection first. Where suitable, we help you enter Breathing Space so interest, charges and most enforcement are paused while we build a plan based on a verified budget. Then we guide you into the right route — IVA, DMP or DRO — and handle creditor contact in writing.

Also see: Stop Debt Collectors and the Debt Calculator for a quick affordability sense-check.

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Personal Loan Affordability Helper

Work out a safe monthly offer and next steps

Tip: If the suggested payment is low or you’re being chased, ask about Breathing Space to pause interest and most enforcement while we verify your budget.

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Stop Personal Loan Debt Collectors (The Calm Way)

What to do when letters and calls start

Keep everything in writing, avoid promises you can’t keep, and share a realistic offer based on your verified budget. Many lenders consider freezing interest/charges when a fair plan is shown. If suitable, Breathing Space pauses most enforcement so you can focus on essentials and we can organise a long-term route.

Collector names you might see

Examples include Lowell, Capquest, Advantis, Moriarty Law and others. The name may differ from your original lender because debts are often assigned or collected by agencies.

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Breathing Space — Pause Interest, Charges & Most Enforcement

Why we lead with Breathing Space

What we’ll ask for

Creditor list, balances and references; recent bank statements; and evidence of income/priority bills. We’ll help gather what’s needed quickly.

While protected, you should still pay priority bills like Council Tax and essentials wherever possible.

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IVA, DMP or DRO — Which Fits Personal Loan Debt?

IVA — formal solution

Best where debts are around £6,000+ and income is steady. Once approved, interest and most enforcement are usually frozen; any remaining qualifying unsecured debt may be written off at completion (typically after 5–6 years).

DMP — informal, flexible

One reduced payment to non-priority debts, reviewed against a fair budget. Interest freezes are requested but not guaranteed; many lenders cooperate when offers are realistic.

DRO — strict criteria

Suited to low income and low assets within set limits. Qualifying debts are legally paused and may be written off after the DRO period if criteria still apply.

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Missed Personal Loan Payments, Defaults & CCJs

What happens if you fall behind?

Missed payments can lead to default notices, debt collection and court claims (CCJs). Early support helps you avoid escalation. If a claim arrives, you still have options — we’ll check affordability, respond on time and move you into a protective route.

Fast relief

Where suitable, Breathing Space pauses most enforcement steps on qualifying debts while we finalise your plan.

If multiple debts are involved, try our Debt Calculator to map a realistic offer across creditors.

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Your Rights & Affordability Complaints

Was your loan affordable when taken out?

If checks were poor and payments were never realistically affordable, you may have grounds to complain. Start with the lender’s complaints team; if unresolved after eight weeks, you can take it to the Financial Ombudsman Service. We’ll help you gather evidence and avoid harmful promises while you wait.

While your complaint is reviewed

Ask us about Breathing Space or an interim plan to keep priority bills safe and reduce contact stress.

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Personal Loan Help — Search-Intent Topics

Freeze interest & charges on a personal loan

Show a verified budget and a fair proposal. Many lenders will consider stopping interest/charges when an affordable plan is in place. If suitable, Breathing Space can pause most interest and enforcement while that plan is arranged.

Personal loan default — what it means

A default is normally recorded after persistent arrears. It can lead to collection activity or a court claim. Seek advice early — protections and realistic offers can prevent escalation and protect essentials.

Token payments on personal loans

When affordability is very tight, short-term token offers can reduce pressure while you gather documents, enter protections or move into a longer-term option such as a DMP, IVA or DRO.

Including a personal loan in an IVA/DMP

Personal loans are unsecured and commonly included in both IVAs and DMPs. We’ll confirm eligibility and which route best fits your income stability and goals.

Breathing Space for personal loans

Standard protection lasts up to 60 days on qualifying debts while you engage with advice and set up a plan. There’s also a Mental Health route that can last longer while treatment continues.

If you’re in Scotland

Different protections and solutions apply (temporary moratorium, Trust Deeds, Debt Arrangement Scheme). Tell us your postcode and we’ll signpost correctly.

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Personal Loan Debt — FAQs

Can my personal loan be included in an IVA?

Yes. Personal loans are unsecured and commonly included. Once approved, most enforcement and interest are usually frozen.

Will Breathing Space stop calls and letters?

During the protection period on qualifying debts, creditors should pause interest/charges and most enforcement and should not contact you about enforcement.

Is a DMP enough for a single personal loan?

Often, yes — if the plan is affordable and verified. If affordability is very low or debts are high, an IVA or DRO may be safer.

Will this hurt my credit file?

Breathing Space itself isn’t an insolvency entry, but payment history still matters. Formal solutions impact credit during the term while giving a route to stability.

What if I’m in Scotland?

Different options apply (e.g., temporary moratorium, Trust Deeds, DAS). Tell us your postcode and we’ll signpost correctly.

How quickly can I get protected?

Once we have the basics (debtor info, creditor list, balances and a verified budget), protections may begin quickly if suitable. We’ll prioritise urgent cases.

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Start Your Fresh Start Today

Get protected with Breathing Space and move into a plan that fits your life. We keep priority bills safe, speak to creditors in writing, and guide you to the route with the best long-term outcome.

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