With food, fuel and energy costs continuing to put pressure on household budgets, managing debt repayments can feel like an uphill battle. If you’re finding it harder to keep on top of what you owe, you’re not alone.
The good news is that there are some practical steps you can take that can genuinely make a difference. Specific actions that give you a clearer picture of where you stand and where there might be room to move.
1. List everything you owe – not just the biggest amounts
It sounds simple, but most people have a rough sense of their debt rather than a precise one. Write down every debt you have – the current balance, the interest rate and the minimum monthly payment. Include everything: credit cards, personal loans, overdrafts, store cards, outstanding utility arrears. You can download our handy budget planner to help with this.
It can feel daunting to see it all in one place. But you cannot make a plan without the full picture. Knowing exactly what you owe and what each debt is costing you is the foundation for every other step.
2. Tackle high interest debt first
Not all debt is equal. A debt with a high interest rate is costing you more every single month you have it, which means the balance grows faster and takes longer to clear.
Average credit card purchase rates in the UK are currently running at around 27%, with typical APRs (which include fees and charges) significantly higher than that. If you make only the minimum payment on a typical credit card balance, it could take over 27 years to clear and cost close to double what you originally borrowed.*
Try to pay more than the minimum wherever you can. Even an extra £20 a month can make a real difference over time, particularly on high interest balances. If you have multiple debts, focus any additional payments on the one with the highest interest rate first, then work your way down.
3. Do a subscriptions audit
Most of us have an idea of our big monthly outgoings but fewer of us have a clear picture of the smaller recurring payments, quietly leaving our accounts each month.
Log into your banking app and look for recurring payments – streaming services, gym memberships, pro versions of apps, insurance add-ons and anything else set up as a regular charge. UK households spend an average of £65 a month on subscriptions,† many of which are forgotten free trials, duplicate services or apps that are rarely, if ever, used.
Cancelling even two or three of these means you can redirect money towards debt repayment instead. Check whether each subscription is monthly or annual – monthly subscriptions can usually be cancelled quickly with savings felt straight away, while annual ones may have to run until renewal. Either way, identifying and cancelling what you don’t need is time well spent.
4. Don’t overlook Buy Now Pay Later
Klarna, Clearpay and similar Buy Now Pay Later (BNPL) services have become a routine part of how many people shop online. They don’t always feel like debt – but they are.
Multiple BNPL commitments spread across different platforms and purchased at different times can be surprisingly easy to lose track of. Missed or late payments can result in fees and, increasingly, can have a negative impact on your credit file.
Go back to the list you made in step one and make sure every active BNPL commitment is on it, along with the amount outstanding and the due date. Seeing it alongside your other debts gives you an accurate picture of your total obligations and outgoings.
When practical steps aren’t enough
These tips can make a real difference for people who have some room to manoeuvre. But sometimes the gap between income and outgoings simply can’t be closed through budgeting alone – and in those situations, the most important thing you can do is seek advice early.
The earlier you get advice, the more options are available to you. Debt doesn’t resolve itself and waiting rarely makes things easier.
If you’re managing multiple debts and think an IVA could be the right fit for your situation, we’re here. Give us a call on 0800 856 8569 or fill in our online enquiry form.
*Source(s): Finder.com. Average credit card purchase rate of 26.86% as at March 2026. The Money Charity Money Statistics, March 2026. Based on average credit card interest rate with minimum repayments only (interest plus 1% of outstanding balance). Full methodology at themoneycharity.org.uk/money-statistics.
†Source: Aqua research 2025.
IVAorg CIC is a not-for-profit, licensed insolvency practice specialising in Individual Voluntary Arrangements. We only recommend an IVA when we are satisfied it is the right solution for the individual.
