UK debt & bankruptcy guidance
What is Hardship?
Practical StepsWhen paying a debt would leave you unable to meet essential living costs. Creditors must follow specific rules in genuine hardship cases.
Related Practical Steps terms
Disposable Income
What is left of your income after essential living costs are paid — used to work out what you can realistically afford towards debts.
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.
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.