The Quickest Way to Pay Off Your Debts: A Step-by-Step Guide
Published 29th of March 2012·Updated 28 April 2026
Reviewed by: Reviewed for accuracy April 2026
The quickest way to pay off debt is to use the avalanche method: stop taking on new borrowing, list all your debts by interest rate, and pay the minimum on every debt except the highest-rate one. Put every spare pound toward that top debt until it is gone, then move to the next. This approach minimises the total interest you pay and clears debt faster than any other method.
Short Summary
The avalanche method targets the highest-interest debt first, saving the most money overall. The snowball method, which targets the smallest balance first, can feel more motivating but costs more in interest over time.
Consolidating multiple high-interest debts into a single lower-rate loan or 0 per cent balance transfer card can significantly reduce the interest you pay and speed up repayment.
Cutting non-essential spending and redirecting that money to debt repayment is one of the fastest ways to accelerate your progress. Even an extra £100 per month can shave years off a credit card balance.
Increasing your income, even temporarily, through evening work, selling unused items, or freelancing can provide a lump sum to clear a debt entirely and remove it from your list.
If your debts feel unmanageable, StepChange and Citizens Advice both offer free debt advice and can help you decide whether a formal solution such as a Debt Management Plan is more appropriate.
What is the avalanche method and why is it the fastest?
The avalanche method works by directing extra payments to your most expensive debt first. List every debt you have alongside its interest rate (APR). Pay the minimum required on all of them, then put any remaining money toward the debt with the highest APR.
Once that debt is paid off, redirect its full payment amount to the next highest-rate debt. According to the Money Advice Service, this method reduces the total interest paid compared to any other repayment sequence. For someone with a 39.9 per cent APR credit card and a 6 per cent personal loan, the credit card must be the priority.
Should I use the snowball method instead?
The snowball method targets your smallest balance first, regardless of interest rate. The appeal is psychological: you eliminate debts faster in terms of number, which can feel motivating and help you build momentum.
Research published by the Harvard Business Review found that debtors who focused on individual balances were more likely to stay on track. If you have tried the avalanche method before and given up, the snowball method may work better for you in practice, even if it costs slightly more in interest.
| Method | How it works | Best for |
|---|---|---|
| Avalanche | Pay highest APR debt first | Minimising total interest paid |
| Snowball | Pay smallest balance first | Staying motivated |
| Consolidation | Combine debts at lower rate | Simplifying multiple debts |
How does debt consolidation help pay off debt faster?
Debt consolidation replaces multiple debts with a single loan at a lower interest rate. If you are paying 39.9 per cent APR on a credit card and can consolidate it into a personal loan at 8 per cent APR, a far greater share of each monthly payment goes toward reducing the balance rather than servicing interest.
High-street lenders including Barclays, Halifax, and Nationwide offer debt consolidation loans. Alternatively, a 0 per cent balance transfer credit card from providers such as Barclaycard or MBNA can eliminate interest entirely for an introductory period, typically 12 to 24 months. You must pay a transfer fee (usually 2 to 3 per cent) and clear the balance before the 0 per cent period ends.
How can I find extra money to overpay my debts?
Overpayments are the single most effective lever you have. Even an extra £50 per month can reduce a five-year repayment to under four years on a typical personal loan.
Start by reviewing direct debits and subscriptions. Cancel any that you do not use regularly: a gym membership you rarely visit, streaming services you have not watched in months, and insurance policies that can be found cheaper on comparison sites such as MoneySuperMarket or Compare the Market. Then redirect those savings entirely to your priority debt.
Can earning more money help me clear debt faster?
Yes, and it is often more effective than cutting spending because there is no ceiling on income. Evening or weekend work in areas such as delivery driving (with companies such as Deliveroo or Amazon Flex), tutoring, or freelance work through platforms such as PeoplePerHour can realistically add £200 to £500 per month.
Selling items you no longer need through eBay, Facebook Marketplace, or Vinted can generate a one-off lump sum. A single overpayment that clears a small debt entirely removes it from your list and frees up its minimum payment to accelerate the next one.
Should I stop using credit cards while paying off debt?
Yes, in almost every case. Continuing to use a credit card while trying to pay it down is like bailing out a boat with the tap still running. Cut up or freeze cards you do not need. If you need a card for emergencies, keep one with a low credit limit and treat it as a last resort.
The exception is a 0 per cent purchase card used for planned, budgeted spending where you pay the full balance each month. In that case, no interest accrues and it does not interfere with your repayment plan.
FAQ
What is the fastest debt repayment strategy?
The avalanche method is mathematically the fastest and cheapest. You pay minimums on all debts and direct every extra pound to the highest-APR debt first. This minimises the interest that compounds each month and reduces the total amount you repay.
Is it worth getting a 0 per cent balance transfer to pay off debt?
Yes, if you are disciplined. Moving a high-interest credit card balance to a 0 per cent balance transfer card means every payment reduces the actual debt rather than servicing interest. Set up a direct debit to pay it down in equal instalments over the 0 per cent period so you clear it before interest kicks in.
How much extra should I pay on my debt each month?
As much as you can realistically sustain. A consistent extra £100 per month matters more than an occasional large overpayment followed by months of minimum payments. Build overpaying into your monthly budget as a fixed line item rather than an afterthought.
What if I cannot afford more than the minimum payment?
Contact your lender. High-street lenders including Barclays, HSBC, and Lloyds have financial difficulty teams that can agree a temporary payment reduction or interest freeze without the need for a formal debt solution. Acting early gives you more options. StepChange can also review your full financial picture for free and suggest the most appropriate approach.
Does overpaying a personal loan save interest?
Usually yes, but check your loan agreement for early repayment charges. Most personal loans issued since 2010 are regulated under the Consumer Credit Act and allow overpayments with a fee capped at one or two months' interest. For most people, the interest saved by overpaying outweighs any early repayment charge.
Should I save money at the same time as paying off debt?
Not if your debt is charging more interest than your savings earn. A credit card at 25 per cent APR will cost you far more than any easy-access savings account (currently paying around 4 to 5 per cent) can earn. The sensible approach is to keep a small emergency fund of £500 to £1,000, then direct everything else to debt repayment.
When should I consider a formal debt solution instead?
If your total unsecured debt is more than you can realistically repay within five to six years even with reduced spending and extra income, a formal solution such as a Debt Management Plan, IVA, or Debt Relief Order may be more appropriate. StepChange provides free, regulated advice and will never push you toward a paid solution unnecessarily.