Debt Basics: prioritise, then plan
If you are worried about debt, two things first. One: you are far from alone. The free debt charities below help hundreds of thousands of people in the UK every year, and the reasons are overwhelmingly ordinary ones. Two: free, confidential, judgement-free help exists, and the earlier you use it the more options you have.
Priority debts come first
Not all debts are equal. Priority debts are the ones with the most serious consequences if unpaid, and they get dealt with first regardless of size or interest rate:
- Rent or mortgage (risk: losing your home)
- Council tax (risk: enforcement action)
- Energy and water (risk: disconnection or forced meters)
- Court fines and child maintenance
Credit cards, personal loans, overdrafts and buy-now-pay-later are non-priority. They matter, but they come after the roof and the heating.
How interest works against you
Interest on debt is compounding in reverse: you pay interest on the interest. This is why minimum payments are a trap. They are often set barely above the interest charge, so the balance shrinks glacially while the total cost balloons. Any amount above the minimum shortens the timeline dramatically.
Two repayment strategies
Once priority debts and minimums are covered, direct any spare money using one of two well-known methods:
- Avalanche: pay extra on the highest-interest debt first. Cheapest overall, which is mathematically optimal.
- Snowball: pay extra on the smallest balance first. Costs slightly more, but each cleared debt is a visible win, and motivation is what keeps a plan alive.
The best method is the one you’ll stick to.
Where to get free help today
You never need to pay a company to manage your debts, because these charities do it free, and they are regulated to give debt advice:
- Citizens Advice, citizensadvice.org.uk
- StepChange Debt Charity, stepchange.org
- Christians Against Poverty, capuk.org (in-person, community-based help)
- National Debtline, nationaldebtline.org
They can negotiate with creditors, check you’re receiving all benefits you’re entitled to, and set up formal solutions where appropriate.
“Suppose one of you wants to build a tower. Won’t you first sit down and estimate the cost to see if you have enough money to complete it?” Luke 14:28. Facing the numbers is the first step, and it’s the step most people say brought relief.
Start by seeing your full picture in our Budget Planner. It is private, free, and nothing you enter is stored.