An example strategy for repaying unsecured debt

It can be valuable to think about how you can go about tackling debts if they have built up. One strategy you might want to look at is detailed below.

List out all your outstanding debts, interest rates and repayment terms. Usually, you’ll want to exclude student loans and mortgages from this list as these are longer term and are usually not considered when looking to improve your short-term financial standing.

Once you have your list written, make minimum payments on your debts to reduce your monthly payments and use any surplus money to pay off the highest interest debt that you have so you end up paying less overall interest. Once this first debt is dealt with move down the list to the one with the next highest interest and continue until all your debts are dealt with.

Where to get free debt advice

If you are struggling with debt, there are free, confidential services that can help. Money Helper offers a debt advice locator tool to find quality-assured advice services. Be wary of paid for debt advice services as you can usually access the same help for free. Support is available regardless of how large or small your debt is.

Options for dealing with your debts: Breathing Space (Debt Respite Scheme) - GOV.UK

https://www.moneyhelper.org.uk/en/money-troubles/dealing-with-debt/debt-advice-locator