Your complete debt escape plan
This page covers the two proven payoff methods, how interest actually works against you, and the exact steps to take this week. No fluff, no glossed-over details.
The two methods
Both work. The difference is psychology vs mathematics. Here's the honest breakdown so you can choose without guessing.
Pay off your smallest balance first, regardless of interest rate. Make minimum payments on everything else. Once the smallest is gone, roll that payment onto the next one.
The quick wins keep you motivated. Crossing debts off your list creates momentum that carries you through the longer ones. Research shows people using this method are significantly more likely to finish debt free.
Best for: Anyone who needs early motivation to keep going.
Pay off your highest interest rate first, regardless of balance size. Make minimum payments on everything else. Once the highest rate is gone, move to the next.
Mathematically optimal — you pay less total interest and clear debt faster on paper. The downside is it can take longer to see your first debt fully paid off, which some people find discouraging.
Best for: Disciplined people who want to save the most money overall.
Use our free debt payoff calculator to see your exact numbers.
Your action plan
Not someday. This week. Each step builds on the last — start at step 1 even if it feels obvious.
List every debt you have — credit cards, loans, buy now pay later, overdrafts, money owed to people. For each one write the balance, interest rate, and minimum monthly payment. Add them up. That total is your starting number.
It might feel awful to see the number. That's normal. Knowing it, is what gives you the power to change it.
Before you throw everything at debt, save £500–£1,000 in a separate account. This one step stops a broken phone or unexpected bill from sending you right back into more debt. Sell unused items, cut one subscription, or do one no-spend week to get there faster.
Once you hit your target, stop saving and redirect everything to debt.
Choose snowball or avalanche from the section above. Set up minimum payment direct debits on every debt so you never miss one. Then direct every spare pound at your target debt — whether that's the smallest balance or the highest interest rate.
Automating minimum payments removes willpower from the equation. It just happens.
Check every subscription you pay — most people find at least one they forgot about. Compare your energy, insurance, and phone bills — switching or negotiating saves hundreds annually. Cut eating out by even once a week. These aren't permanent sacrifices, just temporary redirections toward freedom.
Every extra £20–50/month you find cuts months off your debt payoff timeline.
Assign every pound of your income a job before the month starts. Income minus all expenses — including debt payments and savings — should equal zero. Use our free interactive budget template on the tools page or download the printable PDF version.
Month 1 will be messy. Month 2 gets easier. Month 3 feels natural. Keep going.
Tools to help you right now
No signups required for most of these — just click and use.
Free PDF guide
The full 7-page guide to getting out of debt — sent straight to your email.
Free calculator
See your exact payoff date and how much you save with extra payments.
Free tool
Fill in your numbers live on the page or download the printable PDF.
Free PDF guide
5 steps to start rebuilding your score from any starting number.
Everything on this page — and more — in a clear, downloadable PDF. Free, forever.