Let’s start with the motivation: any movement in you, no matter how small, towards improvement, is stronger than any storm you will face, as it’s an expression of hope, of desire and of your control. Tie your laces, carry on.
Debt, like a dripping tap or a leaking bucket, has a way of making itself at home. At first, you barely notice and let it go. A little credit card here, a “buy now, pay later” there, and suddenly you have a noise that keeps you awake at night, and you are paying for both the water and the flood.
The good news? Buckets can be fixed and tap washers can be replaced. Debt, no matter how stubborn, can be tackled, one drop at a time. I’ll walk you through how to patch it up, regain control, and make this the year you stop feeling weighed down by what you owe.
Open the bills and list exactly what you owe. It’s tempting to keep your head in the sand, but that won’t make the debt disappear. There is a book about the best time to eat a frog. If you MUST eat it, watching it get sweaty all day as it smirks back at you, isn’t a good strategy. It’s better to get it down your neck at its freshest – 9am. That gives you power, and autonomy.
Write down every debt: credit cards, overdrafts, loans, or that sneaky “three easy payments” plan you forgot about. Add the interest rates next to each one. High-interest debts like credit cards are the culprits eating up your money. Knowing where you stand gives you power. Without a map, you’re just wandering in circles, but, with it, you can plot a course out of the mess.
Pay off the debt with the highest interest rate first while making minimum payments on the others.
If your credit card charges 20% interest and your loan charges 8%, attack the credit card first. Choose the highest rate and lowest amount owed because when you clear smaller balances quickly it gives you wins which keeps you motivated.
Plug the holes in your bucket by deciding where wastage is. For example, swap takeaways for home cooking - £15 a week is £60 a month toward your debt. Cancel unused subscriptions: If Netflix, Disney+, and Prime are gathering digital dust, pick one and save the rest. Cut back on impulse spending. If you’re buying things you don’t need, ask why, and stop. These small tweaks add up. Every pound you save goes back into your pocket, not the bank’s.
High interest is like a greedy monster that keeps eating while you sleep. It’s time to starve it. Move your credit card debt to a 0% interest card for 12–18 months. You’ll save a fortune. Just clear the balance before the offer ends.
Combine multiple debts into one debt consolidation loan with a lower interest rate. Moving £2,000 from a 20% credit card to a 0% card for 12 months can save you £400 or more in interest, money which goes towards clearing the debt.
We all have great intentions until life gets in the way. Automating your debt payments ensures steady progress without relying on memory or willpower.
Set up direct debits for minimum payments to avoid late fees. Schedule extra payments for payday before the money has a chance to vanish. Consistency is what wins the game.
Sometimes, cutting back isn’t enough. If you need an extra push, look for ways to boost your income temporarily to wipe out the debt and lift your self-esteem.
Celebrate your small victories. Each balance you clear is proof that you’re winning.
The ‘Human Givens’ framework identifies nine emotional needs which must be met for us to thrive, including security, control, connection, and meaning. Search ‘what are the Human Givens Nine Basic Emotional Needs’.
By addressing debt strategically, you’re not just improving your finances, you’re building a life which feels calmer, safer, and more fulfilling and one you are in control of.
Interestingly, when we don’t meet our needs in healthy ways, we meet them in unhealthy ways and spending and gambling are two of them. So, meet them in healthy ways.
- Peter McGahan is chief executive of independent financial adviser Worldwide Financial Planning, which is authorised and regulated by the Financial Conduct Authority. If you need advice on a loan or debt, call 028 6863 2692 or email info@wwfp.net
