Updated for 2026
Dealing with debt is one of the most stressful financial situations you can face. Between rising energy costs, higher interest rates, and the ongoing cost of living squeeze, millions of people across the UK are struggling to keep up with repayments. According to the StepChange Debt Charity, the number of people seeking debt advice has risen sharply over the past two years, and average UK household debt continues to climb.
The good news is that there are practical steps you can take right now to regain control of your finances. Whether you owe a few hundred pounds on credit cards or you are juggling multiple creditors, these seven tips will help you start dealing with debt in a structured, manageable way.
1. Tackle Credit Card Debt First
Credit card debt often carries the highest interest rates of any unsecured borrowing. If you have balances spread across multiple cards, the compounding interest can quickly spiral out of control. Focus on paying down the card with the highest rate first while making minimum payments on everything else. This is sometimes called the avalanche method, and it saves you the most money over time.
If you are only able to make minimum payments, that is still better than missing them entirely. Every payment reduces the balance slightly and keeps your account in good standing. If you have three or more lines of credit with at least two creditors, you may qualify for an Individual Voluntary Arrangement (IVA) or a Debt Management Plan. An IVA lets you pay back only what you can realistically afford each month, with any remaining debt written off at the end of the agreed term.
2. Build a Small Emergency Fund
It might seem counterintuitive to save money when you are in debt, but even a modest emergency fund of £200 to £500 can prevent you from borrowing more when something unexpected happens. A broken boiler, a car repair, or an emergency vet bill can push you further into debt if you have no buffer at all.
Always make your contractual debt repayments first. Then, if you have anything left over, put even a small amount aside each month. Over time, this safety net gives you breathing room and stops the cycle of turning to credit every time life throws a curveball. If you are worried about rising utility bills eating into your spare cash, it is worth reviewing your energy tariff and switching providers where possible.
3. Write Down Everything You Owe
You cannot tackle debt effectively if you do not know exactly what you owe. Sit down and list every single debt: credit cards, personal loans, overdrafts, council tax arrears, catalogue accounts, buy now pay later balances, and anything else. Write down the total owed, the monthly payment, the interest rate, and whether you are up to date.
This exercise can feel uncomfortable, but it gives you a clear picture of where you stand. Many people find that their total debt is either less frightening than they imagined, or it highlights that they genuinely need professional help. If the numbers show you cannot realistically afford your repayments, Swift Debt Help can talk you through your options, including formal solutions like an IVA or a Debt Relief Order (DRO).
A DRO may be suitable if your total qualifying debt is under £50,000, your disposable income is no more than £75 per month, your assets are worth less than £2,000, and your vehicle is valued at no more than £4,000. It is a formal insolvency solution that freezes your debts for 12 months, after which they are written off entirely.
4. Prioritise Your Debts
Not all debts are equal. Some carry far more serious consequences if you fall behind. Priority debts include your mortgage or rent, council tax, gas and electricity, and any court fines. Missing payments on these can lead to losing your home, bailiff action, or even imprisonment in extreme cases.
Non-priority debts, such as credit cards, personal loans, and catalogue accounts, still matter, but the consequences of missed payments are generally less severe in the short term. Creditors may add late fees or pass the debt to a collection agency, but they cannot take your home or send you to prison.
If after covering your priority debts you do not have enough left for non-priority creditors, that is a strong signal you need formal debt advice. Get in touch with Swift Debt Help to explore what is available to you. You can also read about whether an IVA or DRO is right for your situation.
5. Create a Realistic Budget
A proper budget is the backbone of any debt repayment plan. Start by listing your income and all essential outgoings: housing, utilities, food, transport, insurance, and minimum debt payments. Whatever is left is your disposable income, and this is what you have to work with.
Look for areas where you can cut back. Meal planning can save a surprising amount on your weekly shop. Switching energy providers, cancelling unused subscriptions, and shopping around for insurance can free up money too. Even small savings of £20 or £30 a month add up over the course of a year, and that extra cash can go towards clearing your debts faster.
If you are dealing with debt while unemployed, budgeting becomes even more critical. Make sure you are claiming any benefits you are entitled to, and contact your creditors to explain your situation. Most will work with you if you are upfront about your circumstances.
6. Ask for Help Early
One of the biggest mistakes people make when dealing with debt is waiting too long to seek help. The longer you leave it, the more interest builds up, the more stressed you become, and the fewer options you may have. Research from Citizens Advice shows that people who get debt advice early are far more likely to resolve their situation successfully.
Debt can also take a serious toll on your wellbeing. If you are finding that money worries are affecting your sleep, your relationships, or your ability to function day to day, you are not alone. There is a strong link between spiralling debt and mental health problems, and getting support sooner rather than later can make a real difference.
Contact Swift Debt Help for free, confidential advice. We will explain your options clearly, with no pressure and no judgement. You can also use our online debt solution finder to get a quick idea of which solutions may suit your circumstances.
7. Cut Non-Essential Spending
When you are actively paying down debt, every pound counts. Take an honest look at where your money goes each month. Takeaways, streaming subscriptions, gym memberships you rarely use, impulse purchases online: these all add up. Cutting back temporarily does not mean giving up everything you enjoy forever. It means redirecting that money towards becoming debt-free.
Once your debts are under control and you are meeting all your repayments comfortably, you can gradually reintroduce the things you cut. The short-term sacrifice is worth the long-term freedom. If your credit score has taken a hit during this period, there are steps you can take to rebuild it over time.
What to Do Next
If you have tried these tips and still find yourself struggling, or if your debts feel overwhelming, it is time to get professional support. There are several formal debt solutions available in the UK, including IVAs, DROs, Debt Management Plans, and bankruptcy. The right solution depends on your individual circumstances: how much you owe, your income, your assets, and your household situation.
Swift Debt Help is here to guide you through the process. Use our debt solution finder to take the first step, or call us directly for a no-obligation chat. You can also visit GOV.UK for an overview of debt options available to you.
Financial disclaimer: This article is for general information only and does not constitute financial advice. Debt solutions such as IVAs, DROs, and bankruptcy have serious implications and may not be suitable for everyone. Fees may apply. Your credit rating will be affected. Always seek professional advice before entering into any formal debt solution. Swift Debt Help is a trading style of Swift Debt Help Ltd. We are not a lender.
