Start with the basics
Before choosing a strategy, list all your debts: balance, interest rate, minimum payment, and whether they are priority or non-priority. Priority debts — mortgage/rent, council tax, energy, child maintenance, court fines — must be paid first to avoid serious consequences. Non-priority debts include credit cards, personal loans and overdrafts.
Make minimum payments on all debts before putting extra money towards any single debt.
The avalanche for mathematically optimal results
If you are disciplined and want to minimise total interest paid, target the highest interest rate first while making minimums on everything else. This is mathematically optimal.
The snowball for motivation
If you need visible progress to stay motivated, target the smallest balance first. Paying off a debt entirely — even a small one — has a motivational effect that helps many people stay on track.
Consolidation and balance transfers
Balance transfer cards move credit card debt to a 0% deal for a set period. This is excellent for credit card debt if you can qualify. Debt consolidation loans can simplify multiple debts into one payment, but only reduce cost if the consolidation rate is genuinely lower.
Never consolidate secured debt (mortgage) with unsecured debt, or extend debt over a much longer term just to reduce monthly payments — this typically costs more in total.
When to seek free help
If you cannot meet minimum payments, or if debt is causing significant stress, contact StepChange, National Debtline or Citizens Advice. Free debt advice is available 24/7 online from StepChange. These services are regulated and genuinely free.