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Ten steps to get out of debt


If you are struggling with debt, and constantly trying to make ends meet but feeling like you are not getting anywhere, take a minute to think long and hard about what you are spending your money on. Here are ten pointers to help you get back on track.   Back to the Blog!

1. Get a Clear Picture of Your Debt

Start by writing down every debt you have, including:
  • Credit cards
  • Personal loans
  • Overdrafts
  • Store cards
  • Buy Now, Pay Later agreements
For each one, note the balance, interest rate, minimum payment, and due date. Many people avoid this step because it feels uncomfortable — but clarity is the first step to control.

2. Create a Realistic Budget (and Stick to It)

A budget isn’t about restriction — it’s about intention. List your monthly income and essential outgoings (rent or mortgage, utilities, food, travel), then see what’s left for debt repayment. Tools such as MoneyHelper’s budget planner can help. Be honest, realistic, and review your budget monthly.

3. Prioritise High-Interest Debts First

If you’re juggling multiple debts, focus on those with the highest interest rates — often credit cards and overdrafts. This is known as the avalanche method:
  • Pay minimum payments on all debts
  • Put any extra money towards the highest-interest balance
This approach reduces the total interest you pay over time.

4. Check If You Can Reduce Interest Rates

High interest keeps you trapped in debt longer. You may be able to:
  • Switch to a 0% balance transfer credit card
  • Consolidate debts with a lower-interest personal loan
  • Speak to your bank about reducing overdraft costs
Always check fees and ensure you can clear balances before promotional rates end.

5. Don’t Ignore Early Signs of Trouble

If you’re struggling to make payments, act early. Missing payments can lead to fees, higher interest, damage to your credit file, and increased stress. Lenders are required to treat customers fairly and may offer temporary support if contacted early.

6. Cut Costs – Even Temporarily

Short-term sacrifices can make a big long-term difference.
  • Cancelling unused subscriptions
  • Switching energy, broadband, or mobile providers
  • Meal planning to reduce food waste
  • Using cashback and loyalty schemes
Even saving £50–£100 a month can significantly speed up repayment.

7. Increase Your Income Where Possible

If cutting costs isn’t enough, consider ways to boost income:
  • Overtime, freelance, or gig work
  • Checking eligibility for government support
  • Selling unused items online
  • Renting out a spare room under the rent-a-room scheme
Any extra income should go directly towards clearing debt.

8. Avoid Taking on New Debt

While paying off debt, try not to add more:
  • Limit credit card use
  • Avoid buy now, pay later schemes
  • Build a small emergency buffer
Breaking the cycle is just as important as reducing balances.

9. Use Free, Trusted Debt Advice

You don’t have to do this alone. Free, confidential support is available from:
  • StepChange Debt Charity
  • National Debtline
  • Citizens Advice
  • MoneyHelper
They can help you explore repayment plans, breathing space, or formal debt solutions — without judgment.

10. Celebrate Progress (Not Just the End Goal)

Getting out of debt is a journey. Celebrate milestones such as:
  • Clearing your first balance
  • Reducing total debt by 25% or 50%
  • Sticking to your budget for three months
Small wins keep motivation high and help build healthier financial habits.
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