Citizens Advice on Debt: Secrets They Don’t Tell You

Debt can feel like drowning, but what if I told you there’s a way out? The true tragedy isn't the debt itself, but how often we miss out on simple solutions. Everyone knows the pain of overdue bills, but far fewer know the strategies that could help them manage or even eliminate their debt. What if your biggest problem wasn’t your debt but your approach to it?

Imagine sitting across from a debt adviser. Instead of lecturing, they say something unexpected: “Your debt doesn’t define you. It's just a number.” Suddenly, the stress eases. The truth is, many people are carrying the emotional weight of debt when practical solutions exist.

You may think bankruptcy is your only option or that consolidation is always the answer, but it’s not that simple. Citizens Advice, the go-to resource for financial help in the UK, dives deeper into debt issues than you might expect. Let’s uncover the hidden tips they provide:

1. Prioritization is key: Citizens Advice teaches that not all debts are equal. Prioritize debts that carry severe penalties first—those related to housing, utilities, or taxes—before others, such as credit card debt. Missing a rent payment could mean eviction, while missing a credit card payment might just result in a late fee.

2. Understanding debt repayment plans: People often assume debt repayment plans are the end-all solution. But Citizens Advice cautions against rushing into a plan without fully understanding the terms. Sometimes, paying small amounts across all debts does more harm than good.

3. The mental toll of debt: Here’s something no one talks about: the emotional weight of being in debt. Citizens Advice emphasizes the importance of addressing the psychological impact alongside the financial burden. Many are surprised to learn that anxiety, depression, and stress often accompany financial problems. That’s why Citizens Advice recommends reaching out for emotional support, whether through counseling or community resources.

4. What about hidden benefits? Many people qualify for benefits and grants they don't even know exist. Are you one of them? Citizens Advice can help you figure out what financial help you might be missing, which can make a huge difference in reducing the overall strain of debt.

5. Debt relief orders (DROs): Not as widely known as bankruptcy, DROs are an option for individuals with smaller amounts of debt and little to no disposable income. With Citizens Advice, you can assess whether a DRO is a better fit for your situation, sparing you from the harsher consequences of bankruptcy.

6. Free vs. paid advice: Here’s a shocking truth—paid debt advice isn’t always better. Citizens Advice is free, and their advisers are often just as qualified (if not more) than those you’d pay for. Why shell out cash you don’t have when there’s high-quality free help available?

7. The 50/30/20 rule: Citizens Advice loves a structured approach, but they avoid cookie-cutter advice. One of the most versatile tips is the 50/30/20 rule, a budget strategy where 50% of your income goes to needs, 30% to wants, and 20% to savings or debt repayment. Tailoring this rule to your unique situation can help you gain control without feeling overly restricted.

8. Negotiating with creditors: Most people don’t know this, but creditors are often willing to negotiate. Citizens Advice can coach you on how to ask for more favorable terms or even a reduction in your total debt. After all, they want to get paid, and sometimes that means meeting you halfway.

Now, let’s dive into the personal side of debt—the part that gets so easily overlooked. The stigma surrounding debt can make people feel isolated, but when you talk to Citizens Advice, you’re reminded that debt isn’t a personal failing. It’s a problem with a solution. They see individuals from every walk of life struggling under the weight of loans, payday advances, and overdrafts, but they also witness people successfully navigating their way out.

So what’s the real secret to managing debt? It’s not about paying off everything right away (because, let’s be honest, who can do that?), but about taking small, manageable steps that eventually lead to freedom. It’s about being kind to yourself during the process, understanding your options, and reaching out for help.

If you’ve ever felt trapped by debt, you’re not alone. The stories that Citizens Advice shares are filled with people just like you—people who were once buried under a mountain of bills but managed to claw their way out by following advice that wasn’t readily apparent to them at the start.

By focusing on small wins, like negotiating lower payments or understanding what debts to tackle first, you can start to make progress. And progress is everything.

In the end, the biggest takeaway from Citizens Advice isn’t just their knowledge of finance, but their reminder that you are more than your debt. It’s possible to regain control, but it starts with understanding that the first step isn’t always the biggest one.

Debt doesn’t define your future—your actions do.