The Problem
UK credit card debt hit £2.5 billion in outstanding interest charges in 2025. The average APR is around 23%. That figure stays abstract until you run it on your own balance. A £3,000 balance at 23% costs you roughly £690 a year in interest before you pay a penny off the principal.
Most people underestimate this because they only look at the minimum payment. The minimum is engineered to keep you paying for years.
Strategy 1: Balance Transfer Cards
This is the most powerful option if your credit score can support it. A 0% balance transfer card lets you move existing debt to a new card with no interest for a set period, typically 12 to 29 months in the current market.
How to do it: 1. Check your eligibility (soft credit check) on comparison sites 2. Apply for the best offer you are likely to get 3. Transfer your balance (small fee, usually 1-3%) 4. Set up a direct debit for the monthly minimum 5. Divide total debt by the number of 0% months. That is your target monthly payment.
The trap: People get a 0% card, relax, and pay the minimum. The promotional period ends and they are back to paying 23% on whatever is left. Set a calendar reminder two months before the deal expires. If you cannot clear the balance in time, line up another transfer.
Strategy 2: The Avalanche Method
If a balance transfer is off the table, put every spare pound against the card with the highest APR. Pay minimums on everything else.
This is mathematically optimal because it minimises the total interest you pay across all your cards. It is less motivating than the snowball method, which clears the smallest balance first, but over 18 to 24 months the difference in total cost is real money.
Strategy 3: Negotiate a Lower Rate
Most people never try this, which is exactly why it sometimes works. Call your provider and ask for a rate reduction. If you have been a customer for years with a clean payment history, they have a reason to keep you. The worst outcome is a polite no.
Strategy 4: Overpay Early in the Month
Credit card interest is calculated daily on your average daily balance. Paying £500 on the 1st of the month saves more interest than paying £500 on the 25th. The earlier the payment lands, the lower your average balance for the billing cycle. Small each month, meaningful across a year.
Strategy 5: Stop Using the Card
This sounds obvious. It is also the step most people skip. Paying £300 a month off a balance while putting £250 of daily spending back on the same card means you are barely moving. Switch to a debit card or cash for day-to-day spending until the balance is clear, then come back to the card if you want the rewards.
Track Your Progress
Use CoreFi to visualise your debt payoff journey. See your projected debt-free date, compare avalanche vs snowball strategies, and track how much interest you are actually being charged versus the stated APR.