Trying to get out of debt? Here's where to actually start

Debt is one of those things that tends to feel bigger and more overwhelming than it actually is, especially in the middle of it. The good news — genuinely — is that there are well-established ways to tackle it, and the first step is usually the same regardless of how much you owe.

Step one: write it all down

Before you make any decisions, you need a clear picture of what you actually owe. List every debt you have:

• The lender or creditor
• The current balance
• The interest rate (APR)
• The minimum monthly payment

This list is uncomfortable to make. Do it anyway — it's the single most important thing you can do. Debt that you're vaguely aware of but not looking at directly tends to grow; debt that you're tracking tends to shrink.

Step two: stop the bleeding first

If you're regularly spending more than you earn, paying down debt becomes a losing battle — you're fighting the interest with one hand while adding to the principal with the other. Before focusing on repayments, make sure your monthly income covers your monthly outgoings, even if you have to cut something temporarily.

Most free debt advice services (listed at the bottom of this article) will help you work out a realistic budget as part of the process — you don't have to do this alone.

The two main repayment strategies

Once you've got a stable budget and you have some money available to put toward debt, there are two commonly used approaches. Both work; the right one depends on your situation and what motivates you.

The Avalanche method — mathematically optimal

Pay the minimum required amount on every debt. Then put any extra money toward the debt with the highest interest rate. When that one's gone, move the extra to the next highest rate, and so on.

This is the most efficient approach because you're eliminating the most expensive debt first. Over time, it costs you less in total interest than any other approach. If you're motivated by the maths and can stick with it, this is the one to use.

The Snowball method — psychologically powerful

Pay the minimum on every debt. Then put extra money toward the debt with the smallest balance, regardless of its interest rate. When it's cleared, roll that payment into the next smallest, and so on.

This isn't the cheapest route mathematically, but it creates visible progress quickly. Paying off a smaller debt entirely — even if it wasn't the most expensive one — gives a genuine sense of momentum that keeps a lot of people going. Research has repeatedly found that people using the snowball method stick with debt repayment longer than those using the avalanche.

If you've tried the avalanche and given up, try the snowball. Finishing the journey matters more than taking the perfect route.

Build a small emergency fund first

This sounds counterintuitive when you're trying to clear debt, but it's important. Without a small safety net — somewhere around £500–£1,000, or whatever's achievable — any unexpected expense (a broken appliance, a car repair) gets added back to your debt. You're taking one step forward and then one step back every time life throws something at you.

Pause the extra debt repayments briefly if necessary to build that small buffer. Once it's there, go back to your repayment strategy.

When to get help

If your debt includes council tax arrears, mortgage arrears, rent arrears, or court judgments, please get advice from a specialist before anything else. These are priority debts with serious consequences for ignoring them, and the organisations below deal with them regularly.

If you're being contacted by debt collectors, feel overwhelmed, or aren't sure where to start — getting free advice from a qualified adviser is the right move. It genuinely costs nothing, and a good adviser can often negotiate with creditors in ways you can't easily do yourself.

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Free help, organised by country

The organisations below are either government bodies, government-funded services, or well-established non-profit charities. Each entry is labelled so you know what you're dealing with. All are free to use.