Write the debt down before choosing a strategy
A debt plan starts with facts. Creditor, balance, APR, minimum payment, missed payments, payment date and whether it is priority. Without that list, people often pay whoever shouts loudest or whoever feels most embarrassing. That is not a strategy.
Citizens Advice says priority debts should be dealt with first because the consequences can be particularly serious. After priority debts and essentials are protected, APR becomes important because high interest keeps the balance alive.
Avalanche versus snowball
Avalanche
Pay minimums on everything, then put extra money toward the highest APR. This is usually cheapest mathematically.
Snowball
Pay minimums on everything, then put extra money toward the smallest balance. This can build motivation because accounts disappear faster.
Both methods require one rule: do not miss priority bills to overpay non-priority credit.
When to get help
- You are using credit for food, rent, mortgage, council tax or energy.
- You are paying one debt with another.
- You have arrears on priority bills.
- You cannot afford minimum payments.
- You are avoiding letters, calls or banking apps.