UK debt & bankruptcy guidance
What is Disposable Income?
Practical StepsWhat is left of your income after essential living costs are paid — used to work out what you can realistically afford towards debts.
Related Practical Steps terms
Full and Final Settlement
A one-off lump-sum offer to a creditor to clear a debt, often accepted for less than the full amount owed.
Hardship
When paying a debt would leave you unable to meet essential living costs. Creditors must follow specific rules in genuine hardship cases.
Interest Freeze
When a creditor stops adding interest or charges to your account so the balance stops growing while you sort a plan.
Token Payment
A small regular payment (often £1 a month) to a creditor while you sort a longer-term plan. It shows good faith and may pause further action.