Eight tricks to repay debt more quickly

There's no getting away it: times are tough right now. From pasta to petrol and energy to eggs, everything is getting more expensive. It's likely many of us will turn to loans and credit cards to get us through.

If you're worried about debts mounting up as a consequence of these grim economic tidings, you're not alone.

Findings from the 2025 Money Talks report, a joint campaign between MoneySuperMarket and Campaign Against Living Miserably (CALM), revealed that 1 in 4 young people are in debt.

Money is the topic causing young people the most worry right now - ahead of social media, body image, and relationships. 2 in 5 young people worry about money daily.

If you're among the increasing number of Britons who are fearful about their finances, we're help to help you.

Read on for some crucial advice to get your finances back on track.

1. Take stock of what you owe

Begin by sitting down and working out just how much debt you have on credit cards, personal loans, overdrafts and so on – and at what rates.

If you have lost track of who you owe money to, it’s worth checking your credit report. You can do this with our Credit Score tool. We use data from credit reference agency, TransUnion, to provide your score and report via Credit Score.

By seeing your credit report and credit score, you can see where you stand financially. You’ll also get tips on actions you can take to nurture your rating.

If you have credit card debt, you can also use our credit card calculator to work out how much interest will add to your repayments over time and how long it might take to pay off completely.

2. Work out a budget

A key step in taking control of your debts is drawing up a budget.

You can do this either on paper or online. There are useful budgeting resources you can access for free via organisations such as Citizens Advice and Stepchange.

Once you’ve worked out how much money you have coming in and going out, you can see more clearly how much you have to spend, how much you have to save, and how much you have to pay off your debt.

When looking at your borrowing, you should prioritise paying your rent mortgage and energy bills ahead of secondary debts, such as overdrafts, credit cards and personal loans. However, that doesn't mean you should neglect these secondary bills as interest can add up over time, making them more difficult to pay off later.

If you’re spending more than you earn, see where you could cut back – even just for a few months. You may be able to make savings right away by switching to better deals on outgoings such as energy bills and broadband.

3. Use savings to clear debt

Savings rates are likely to fall in the next 12 months, so now could be a good time to use some of your nest egg to pay down your debts.

This can make good financial sense given the rates you are paying on cards, loans and overdrafts will typically be much higher than the rates of interest you are earning on money you have squirreled in savings accounts.

Your focus should be on clearing the most expensive debt first – but be sure to check for any penalties.

And don’t deplete your savings completely. It’s vital to have an emergency fund, should the unexpected happen. As a rule of thumb, you should look to have the equivalent of between three and six months’ worth of living expenses set aside in a rainy day account.

4. Try the ‘debt avalanche’ method

This involves you drawing up a list of all your debts – apart from your mortgage. You then focus on allocating money to make the minimum monthly payments needed on each one. If you have any disposable cash left over, you use this to pay off the debt with the highest rate of interest. You continue to do this until all debts are paid off.

The theory is, that by prioritising the most costly debts, you will have to fork out for less interest in the long run – meaning you should clear what you owe more quickly.

5. Move debts to a 0% balance transfer card

If you are paying interest on your credit card debts and finding them hard to manage, you can potentially save hundreds of pounds by switching to a 0% balance transfer card.

Shifting your existing balances onto one piece of plastic with a long interest-free period means you can pay off your debts much faster.

Card companies are getting more generous with their 0% interest deals, with offers being advertised of up to 32 months of zero interest as of March 2025.

But before signing up to any balance transfer deal, check for balance transfer fees. These can range up to 3% of the balance you want to move. On a debt of £4,000, you could end up having to pay £120.

Also be aware that at the end of the promotional period, the interest rate on the card will go up, and rates may be quite high compared to other credit cards.

Keep an eye on how long you have to pay off the debt and make sure you’ve done the maths.

6. Make more than the minimum repayments on your credit card

While it’s vital to make at least the minimum payment each month, ideally, you should strive to pay more than this. This will mean you pay a lot less interest. It can also help you clear your debt more quickly.

Equally, if you can pay off what you owe before the 0% offer runs out, you can avoid paying interest altogether.

7. Consolidate debts to a low-rate personal loan

If you have lots of different debts across overdrafts, credit cards and other forms of borrowing, you might want to consider a debt consolidation loan. This means you will only have one monthly repayment to remember, making it easier to keep track. Rates on personal loans are currently the lowest they've been since 2023.

When applying for a loan, remember to make use of an eligibility checker tool. This will give you an indication of your likelihood of being accepted, without leaving a mark on your credit file.

You can also use our loan calculator to work out how much a personal loan will cost so you can factor this into your budget.

8. Remove temptation

Sticking to spending limits is the hardest part of budgeting, especial when you're constantly bombarded with messages to spend spend spend!

If you find it hard to resist the temptation to splurge, put obstacles in place to make falling back into old spending habits more difficult.

Look at where you're most likely to slip up or face temptation. Unsubscribe to shopping mailing lists, block access to shopping websites you usually browse, remove your credit card details from online accounts, and if all else fails, taking a pair of scissors to your plastic might be the way to go.

That way, you won’t be at risk of running up more debt – helping you stay on track.