Whether you own a credit card or a store card, these things can be extremely valuable. Buy something without having the money for it, tap the card machine and pay for it at the end of the month, when you get paid. However, one thing leads to another and you might end up spending more than what you can pay back. Clearing the whole lot could become mission impossible.

Interest rates will go through the roof and the balance goes higher and higher. You try to put some money back as you get paid, but you finish your wages and end up on the credit card again. It is already too late to stop, but you can still recover. This is the last moment to cut costs and work on your debt. So, how do you get back on track?

Before moving on, you might want to know that credit cards do not always have the highest interest rates. Many times, store cards can be more damaging. The same goes for an overdraft or perhaps a payday loan. While it is imperative to tackle the cards with the highest interest rates first, never overlook priority bills – like rent, mortgage or council tax.

Get your facts straight

Go through all the statements and try to figure out what happened. All those letters from lenders and credit card providers must be opened. Grab a piece of paper and a pen and write everything down, be it an overdraft, a credit card or a payday loan.

Write down how much money you owe by each provider. Double check the interest rates. You should also write down the minimum payment requirements, yet the interest rates are more important when trying to clear debt.

Go for the expensive ones

Each type of loan has a price. Some of them are acceptable, but others can be quite painful. Practically, the higher the interest rate is, the more interest you will pay on a monthly basis. If you truly want to clear the debt, go for the most expensive loan instead, rather than the one with the lowest monthly requirements.

A general credit card will charge about 21% APR, but some of the most expensive ones can reach to almost 60%. No matter which one you go first, never overlook your priority debts – council tax, rent, bills and so on.

Bring out more than the minimum

It is the end or the beginning of the month. Bills grab big chunks of your wages one after another. It is definitely tempting to pay the minimum. If your credit card only asks for a fiver, you are happy to do so. In fact, it looks pretty doable – you could clear this debt out without too much hassle.

However, most experts believe this is a bad idea. If you can afford a fiver, you might as well push yourself to a tenner. After all, making minimum payments can hook you in for years. Paying a bit more will help you lose the debt and reduce some of the interest rates. If you can double it up, even better. No matter how much they ask for, make more than just the minimum payment and you will thank yourself later.

In the end, the general idea is fairly simple to understand. Avoid going too deep into debt and if you do, there is a way out. Everything is about organizing yourself and doing some calculations. You need to ensure you do everything in an organized manner or you risk moving debt from one place to another – without actually getting rid of it.


Gary's life story is quite interesting. Just like everyone else, he has faced frustration and struggled making the right financial situations. Constant education has helped him develop a passion for this industry. He graduated in finances and began working as a financial adviser to take his education even further. In a world where no one seems to be impartial, Gary aims to make the difference with his detailed and straightforward guides. Everything is free – simply embrace the details and make sure they can help you make better decisions. Besides, his guides are explained in a crystal clear manner with no jargon terms.

Leave A Comment

Your email address will not be published. Required fields are marked *