The Little Loans x StepChange Partnership

Money and debt worries can quickly take over our lives and leave us feeling isolated. Please know that whatever you’re facing, you don’t have to deal with it alone.
In this guide, we'll explain what StepChange is, how the free debt advice service works, and where to find support if you're struggling with money worries.

What is StepChange?

Established in 1993, StepChange is a charity offering free, impartial, and confidential debt advice to people in England, Wales, Scotland, and Northern Ireland.

What can StepChange help with?

StepChange provides advice on lots of different money and debt topics, including:

• Debt solutions
• Debt consolidation
• Debt management plan (DMP)
• Debt relief order (DRO)
• Individual Voluntary Arrangement (IVA)
• County court judgment (CCJ)
• Bankruptcy
• Budgeting

StepChange: how does it work?

1. When you contact StepChange, you’ll be asked some questions about your situation. Again, all your information is confidential.


2. Once they understand your circumstances, StepChange will create a tailored plan to help you work through your debt. The advice is given as a guide; you do not have to take any action that you’re not comfortable with.


3. Talking about debt and money worries can feel daunting; please know that, when working with StepChange, you can take a break whenever you need to.

The Little Loans x StepChange collaboration: the Money Health Check quiz

Little Loans is proud to have teamed up with StepChange to bring you the free Money Health Check quiz.

The quiz takes just a few minutes to complete and asks questions such as:

• How would you describe your current situation?
• Are you behind with any of your household bills?
• Are you currently working?

The answers you provide will help StepChange understand your financial position and share relevant support and guidance.
Don’t worry; your answers are confidential, and taking the quiz won’t affect your credit score.

When should I contact StepChange?

If you’re worried about your level of debt, it’s a good idea to seek support as soon as possible. The sooner you understand the options that could be available, the sooner you can begin your journey to getting your finances back on track.

How can I contact StepChange?

• By completing StepChange’s online form.
• By telephone from Monday – Friday between 8am and 8pm, and Saturdays between 9am and 2pm: 0800 138 1111

Need to talk to someone using British Sign Language (BSL)? Visit the StepChange website and connect with a BSL interpreter.

Debt advice myth busters

• Myth: “Debt advice is expensive; I can’t afford to speak to an advisor.”
  Fact: You can get free debt advice from several charities and organisations in the UK, including StepChange.


• Myth: “Debt advice is only for people with large debts.”
  Fact: StepChange is for everyone, whatever your situation.


• Myth: “I’ll be judged for seeking debt advice.”
  Fact: Financial difficulties can happen to anyone, at any time; there is absolutely nothing to feel ashamed of. Reaching out for support is the first step towards taking back control of your finances.


• Myth: “My credit score will be affected if I seek debt advice.”
  Fact: Just talking to StepChange will not change your credit score. If you choose to tackle your debts with an IVA, bankruptcy, or a debt management plan, this is likely to show on your credit record and affect your creditworthiness.


• Myth: “I’m in too much debt. No-one can help me.”
  Fact: Please know that help IS available. Consider reaching out to StepChange as soon as you can. You don’t have to deal with this alone.

Is there anywhere else I can go to for financial advice?

Yes; as well as StepChange, several UK-based charities and organisations offer free, confidential financial advice. These include MoneyHelper, Citizens Advice, and National Debtline.

What should I do if I’ve taken out a loan that I can’t afford to repay?

If you’ve taken out a loan and you’re struggling to make your repayments, your lender should be your first port of call. This might feel scary, but there’s nothing to worry about. Your lender will listen to your situation and talk to you about any solutions that could be available. Every lender is different, but this could include a repayment holiday or temporarily reduced repayments.

Further reading: managing your finances

If you’re concerned about your finances, you might find some of our guides useful.

• What to do if you’re experiencing financial difficulties
• What benefits could I get? Check your benefits eligibility
• What benefits are available for single people in the UK?
• What benefits are available if you lose your job?
• What happens if I default on a loan?
• How to avoid getting into debt

Taking the first step can often feel like the hardest part, but free, confidential support is available. Whether you choose to speak with StepChange, MoneyHelper, National Debtline or another advice service, reaching out early can help you understand your options and regain confidence in your financial situation.