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And if you're unsure what the right option is for you, speak to a free debit advice organisation, such as .

Debt management plan (DMP)

A DMP is an informal agreement so you can stop it at any time and resume the normal debt repayments, or adjust your payments if your circumstances change, like you lose your job.

It ends when you've paid off the debt so it could last for decades.

Many firms charge a fee for the service, either upfront or one that's incorporated into your monthly payments.

If you're struggling due to coronavirus, contact your DMP provider so it can liaise with lenders on your behalf.

Debt relief order

If you're struggling to meet your IPA or IPO repayments, these can be updated if your income changes. You must contact your trustee immediately if this happens.

Equally, if you get a lump sum while you’re paying an IPA or IPO, you may be asked to make a one-off payment from it.

A DRO is way to have your debts written off if you have under £20,000 of debt and no assets.

You have to pay a £90 fee but you don't have to make repayments and after 12 months your debts are written off.

You can't apply for a DRO if you're a homeowner. It will negatively affect your credit score for six years and it may be difficult to get credit during this time and details will be published publically.

Bankruptcy

Bankruptcy is a last resort if there is no other way to repay your debts. It usually lasts a year but it can be up to three years.

A bankruptcy practitioner called a trustee will take control of your assets and sell them to repay your debts.

If you can afford it, the trustee will ask you to make regular payments towards your debts from your income through an income payment agreement (IPA).

If you can’t agree on payment amounts for an IPA, the trustee can apply for an income payment order (IPO). If you don’t meet these payments, the trustee can then apply to extend your bankruptcy.

It is much more difficult to get credit after bankruptcy and your credit rating will be affected by up to six years.

You could lose your house, possessions and some professions won't let you work if you've been made bankrupt.

If you own a business it could be sold and the details of your bankruptcy will be published publically.

You have to pay a £680 fee to go bankrupt.