Best Ways to Pay Off Debts in 2026: The New BNPL Rules and the Free Help Most People Miss


If you are carrying debt this year, there is genuinely good news. New protections have just arrived, and there is free help available that most people never use. So let me walk you through the best ways to pay off debts in 2026.

The Big BNPL Change

This one is only days old. From 15 July 2026, the FCA now regulates Buy Now Pay Later, formally called Deferred Payment Credit.

That matters enormously. Lenders must be authorised, you can complain to the Financial Ombudsman if treated unfairly, and Section 75 protection now applies, meaning you may get a refund from the lender if something goes wrong with your purchase.

The scale of the problem explains why. UK consumers have racked up over £4 billion in outstanding BNPL balances, and research found 45% of users have fallen behind on payments. If you want the full breakdown of repayment strategies, this guide on the best ways to pay off debts is worth reading.

Sort Your Debts First

Before choosing a repayment method, split your debts into two groups.

Priority debts, like rent, mortgage, council tax, and energy, carry the most serious consequences, including losing your home. Deal with these first, always. Non-priority debts, such as credit cards and BNPL, come second.

Getting this order right matters more than any clever repayment trick.

The Free Help Most People Miss

Here is what genuinely surprises people. The government's Breathing Space scheme gives you up to 60 days' respite from interest, fees, and enforcement action while you get your affairs in order. Those in mental health crisis treatment get longer protection.

You access it through a regulated debt adviser, and that advice is free. StepChange, National Debtline, Citizens Advice, and MoneyHelper all offer confidential support at no cost.

Please remember this: you should never pay for basic debt advice.

Final Thoughts

The best ways to pay off debts combine three things. Tackle priority debts first. Choose a repayment method you will actually stick to, whether that is clearing smallest balances or highest interest rates. And use the free support available rather than struggling alone.

If debt feels overwhelming, reach out to one of those free services today. Getting proper advice early changes outcomes far more than any budgeting app ever will.

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