Carrying a balance on a credit card is one of the most expensive things an ordinary household can do, with interest rates that dwarf anything a savings account pays. The good news is that a clear, simple method beats willpower alone. Two approaches dominate, and both work.
The avalanche method
List your debts by interest rate, highest first. You pay the minimum on everything, then throw every spare pound at the most expensive debt until it is gone, before moving to the next. Mathematically this is the winner — it clears the debt for the least total interest and usually the shortest time.
The snowball method
Here you list debts by size, smallest first, and clear the little ones first regardless of rate. You pay more interest overall, but you get quick wins that keep you going. For many people, motivation is the real battle, and a couple of cleared cards early on is worth the slightly higher cost.
Which should you pick?
- Choose avalanche if you are driven by numbers and want the cheapest route.
- Choose snowball if you have struggled to stay the course before and need momentum.
The step that doubles your chances
Whichever you choose, look into a 0 per cent balance transfer card. Moving the debt to an interest-free deal means every payment chips away at the actual balance instead of feeding the lender. Just clear it before the offer ends, and stop spending on the old card. The method gives you a plan; the transfer buys you breathing room.