Finding Your Financial Footing: How Breathing Space Can Help You Pause Debt Pressure

If you are feeling overwhelmed by debts and worried that creditors could take action at any moment, let me reassure you. You are not alone. Many people across England and Wales feel the pressure of mounting bills, endless phone calls, and constant letters. It can feel relentless.

But here’s something important you may not know: the Government’s Breathing Space scheme is here to give you room to breathe. This isn’t a myth or a loophole. It’s a legal right, and you can use it to get a much-needed pause from most debt collection and enforcement action for 60 days.

Let’s talk about what Breathing Space is, how it can help you, who can use it, what debts it covers, and most importantly, what steps you can take next.

What Is Breathing Space and Why Might You Need It?

If you’re struggling to keep up with your payments, Breathing Space can be a lifeline. The official name is the Debt Respite Scheme, but most people simply call it Breathing Space.

Here’s how it works:
When you enter Breathing Space, the law gives you a 60-day break from most creditor action. That means your lenders have to stop chasing you, sending letters, or adding fees and interest (for included debts). You get two whole months to step back, collect your thoughts, and talk through your options with a regulated debt adviser.

This is not debt forgiveness. You still owe the money. But the scheme exists to give you time to get proper advice and create a plan to move forward, free from the immediate threat of bailiffs or new court claims.

If you have ever felt as if the world is closing in on you because of debt, you owe it to yourself to consider Breathing Space.
Why?
Because stress and panic make it harder to see solutions. When you’re calmer, you can think clearly and make better decisions.

What Happens During Breathing Space: Your Key Protections

The minute your Breathing Space period starts, most creditor action stops. Here’s what you are protected from:

• No more added interest or fees on included debts.
• No enforcement action means creditors can’t start new court cases, send bailiffs, or issue default notices on those debts.
• No direct contact from creditors, except for necessary legal notices.
• Your credit records are flagged to show your debts are under statutory protection.

But let’s be clear:
This is not a payment holiday. You still need to keep paying any ongoing “priority debts” if you can, like your rent, mortgage, council tax, or utility bills. If you can’t pay these, talk to your debt adviser as soon as possible. They can help you work out what to do.

TIP: I always tell borrowers, if you are struggling with your priority bills, speak up early. Many landlords and councils will work with you if you let them know what’s going on before you miss a payment.

Which Debts Are Covered, And Which Are Not?

It is so important to understand which debts Breathing Space can pause.

Included debts:

• Credit cards, store cards, and catalogue debts
• Payday loans and other personal loans
• Overdrafts
• Council tax arrears (what you already owe, not future bills)
• Utility arrears (gas, electricity, water)
• Arrears on secured loans (just the overdue amount, not your ongoing payments)
• Most other consumer credit agreements

Excluded debts:

• Ongoing mortgage or secured loan payments (though the arrears can be included)
• Student loans
• Child maintenance and CSA debts
• Court fines, criminal fines
• Tax and VAT currently due to HMRC
• Social fund loans
• Any debts you take on after your Breathing Space starts

Still unsure if your debt qualifies? Always double-check with your debt adviser. They know the rules inside out, and it’s what they’re there for.

Who Can Use Breathing Space? Am I Eligible?

If you live in England or Wales and you are struggling with at least one qualifying unsecured debt, you may be eligible.
But there are some rules to remember:

• You must be living in England or Wales.
• You need at least one debt that qualifies.
• You cannot already be in another formal insolvency solution (like a Debt Relief Order, Individual Voluntary Arrangement, or bankruptcy).
• You must not have used Breathing Space in the last 12 months (unless you’re applying due to a mental health crisis).
• You must get advice from an FCA-authorised debt adviser.

Are you self-employed? You can still apply, as long as your debts fit the criteria.

Two Types of Breathing Space: Standard and Mental Health Crisis

There are two versions of the scheme.

Standard Breathing Space

This is what most people use. It lasts 60 days and you can only use it once every year.

Mental Health Crisis Breathing Space

If you’re getting treatment for a mental health crisis, you can get extra protection. Your Breathing Space will last for the duration of your treatment, plus 30 days. This is designed for people who are especially vulnerable and need more time.

To qualify, a mental health professional must confirm your treatment. Your debt adviser can talk you through the process.

How Do You Apply? The Steps to Start Your Breathing Space

Step 1: Speak to a Regulated Debt Adviser

Do not try to do this alone. Use a free, FCA-authorised service such as StepChange, Citizens Advice, or National Debtline.
Your adviser will:

• Go through your debts with you
• Check if you qualify
• Build a realistic budget
• Discuss all your options

Step 2: Application Submission

If Breathing Space is the right option, your adviser will submit your details to the Insolvency Service (the government body that runs the scheme).
You will need to:

• List all your debts and creditors
• Share your personal details
• Be honest about your income and spending

Step 3: Notification and Start Date

Once registered, your protection begins right away. The Insolvency Service will contact your creditors within 5 working days.
From this point, your 60-day pause starts.

What Happens While You’re in Breathing Space?

• Creditors must freeze all interest and enforcement on included debts.
• No more creditor calls or letters (except legal notices).
• You must keep in touch with your adviser. If anything changes, like your income or living situation, let them know.
• Keep paying your priority bills if you can. This includes rent, mortgage, and utilities.

Remember, if you stop cooperating or you enter another formal insolvency solution, your Breathing Space can end early. Stay in regular contact with your adviser.

TIP: I have seen many people fall behind because they did not update their adviser when their situation changed. If anything shifts with your finances, contact your adviser right away to protect your Breathing Space.

What Happens When Breathing Space Ends?

At midnight on the 60th day, the pause finishes. Here’s what you need to know:

• Creditors can start charging interest and taking enforcement action again. That means calls, letters, court claims, and bailiffs could resume if debts remain unpaid.
• Your debts are still there. Breathing Space is not debt forgiveness; it is time to get help.
• You need a plan before the end. Use this time to work with your adviser on your next step, such as a Debt Management Plan, a Debt Relief Order, an IVA, or bankruptcy if absolutely necessary.

How Breathing Space Compares to Other Debt Solutions

It’s easy to get confused by the options, so let’s break it down:

Solution	Key Features
Breathing Space	A 60-day legal pause. It does not write off any debt, but it does stop most enforcement and interest for two months. One use per year, unless you qualify under mental health crisis rules.
Debt Management Plan (DMP)	Arranges affordable repayments to creditors, but interest and charges may still add up unless creditors agree to freeze them.
Debt Relief Order (DRO)	A formal option for people with low income and few assets. Some or all debts may be written off if you meet strict criteria.
Individual Voluntary Arrangement (IVA)	A binding repayment plan, usually over five or six years. At the end, some remaining debt can be written off.
Bankruptcy	A serious, last-resort option. Wipes out most debts, but affects your life and credit rating for years.

Your adviser will help you decide which route suits your situation.

Will Breathing Space Hurt My Credit Score? Are There Any Risks?

This is one of the most common worries.

• Breathing Space itself is not shown on your credit file. But if you miss payments during the 60 days, those missed payments may appear as arrears.
• If you do not keep in touch with your adviser, your Breathing Space can end early.
• Priority debts (like rent and council tax) are not paused. Make every effort to keep these up to date.
• You cannot take out new credit over £500 during your Breathing Space unless you inform the lender.

The pros:

• Stops immediate enforcement and new charges on included debts.
• Gives you breathing room to make a plan.
• Helps protect your mental wellbeing.

The cons:

• Does not wipe out any debts.
• Does not stop priority action (like eviction or utility disconnection) outside the scheme.
• Only available once a year (unless for mental health crisis).

Where to Get Free Help and How to Apply Today

If you’re thinking, “Where do I even start?” here’s your answer.

Free, official help is always available:

• GOV.UK Breathing Space guidance
• StepChange Debt Charity (stepchange.org)
• Citizens Advice (citizensadvice.org.uk)
• National Debtline (nationaldebtline.org)

To begin:

• Contact a free, FCA-authorised adviser through the links above.
• There is never a fee for Breathing Space advice or application.
• Use the Insolvency Service register to check your Breathing Space status and dates.

Bringing Breathing Space and Debt Support Together for Your Next Step

Taking the first step can feel scary. But remember, the Breathing Space scheme exists to give you a pause not just in your debts, but in your stress.
You are not being judged. You are not failing. You are using a right that exists to help you take back control.

During your 60-day window:

• Work closely with your adviser.
• Make a clear list of your debts and payments.
• Use this time to plan your next move.

If you’re struggling to see a way forward, know this: there is always a path out of debt. The decisions you make today, like reaching out, applying for Breathing Space, and working with a free adviser, are already setting you on a better path.

Take action now:

• Pick up the phone.
• Visit a free debt advice website.
• Book your appointment and tell them you want to talk about Breathing Space.

Every step you take is a step towards financial control and peace of mind. And that, above all else, is what you deserve.

This guide follows the official requirements for Breathing Space in England and Wales. For the latest updates, always check with a regulated debt adviser or the official GOV.UK site.