How to get out of credit card debt
There are eight realistic ways out of credit card debt, from paying a little more each month to formal debt solutions. Here they all are, side by side, with how fast each works and what it costs.
Applies to: England, Wales & Northern Ireland
What to do now
- Work out what you can afford after priority bills with the budget calculator.
- See how long your balance really takes with the payoff calculator.
- If you cannot afford more than the minimum, ask the lender to freeze interest — freeze interest letter.
Every route, side by side
| Route | How fast | Cost | Credit file | Good to know |
|---|---|---|---|---|
| Pay a fixed amount each month | Depends on the amount | Nothing extra | Improves as the balance falls | Use the payoff calculator to see how long. |
| 0% balance transfer | As fast as you can pay during the 0% period | Usually a transfer fee of a few per cent | A new credit search and account | Only realistic if your credit file is still good; clear it before the 0% period ends. |
| Ask for reduced payments and frozen interest | Slower, but the balance actually falls | Free | May show an arrangement to pay | Lenders must consider it; they do not have to agree. |
| Debt management plan | Often several years | Free from debt charities | Usually shows arrears, an arrangement or a default | Informal: creditors are not bound by it, but most cooperate. |
| Full and final settlement | Immediate, once accepted | Needs a lump sum | Shows as partially settled | Get the acceptance in writing before you pay. |
| Debt Relief Order | 12 months, then written off | Free to apply | Recorded for six years | Debts under £50,000, spare income £75 a month or less, assets of £2,000 or less (plus one vehicle up to £4,000), not a homeowner. |
| Individual Voluntary Arrangement | Usually five or six years | Fees come out of your payments | Recorded for six years | Legally binding once approved; usually for larger debts. |
| Bankruptcy | Usually discharged after 12 months | £680 to apply | Recorded for six years | You may lose assets, including equity in your home. |
The table puts the routes side by side; it is not a ranking of what is best for you. Which fits depends on your income, what you own, where you live and what you owe, so check with a free adviser before choosing a formal solution. In Scotland the formal options are different — see debt solutions in Scotland.
Why minimum payments keep you stuck
The minimum payment falls as the balance falls, so paying only the minimum can stretch a few thousand pounds over many years. Paying a fixed amount — even today’s minimum, kept the same each month — cuts the time and the interest dramatically. If you have paid more in interest and charges than off the balance for 18 months, your provider must contact you under FCA persistent debt rules.
If you have several cards
Keep paying at least the minimum on every card, then put anything extra towards one card at a time — the highest interest rate first usually costs least. The payoff calculator compares the avalanche and snowball methods with your own figures.
If you cannot pay at all
Tell the lender in writing straight away. Ask for a short hold while you get advice, and for interest and charges to be frozen. Stopping without contact leads to a default and, eventually, a possible court claim — see the timeline.
You never have to pay for debt advice. MoneyHelper (government-backed), StepChange, National Debtline and Citizens Advice all give free, confidential advice with no obligation.
Common questions
What is the fastest way to get out of credit card debt?
If you can afford it, paying as much as possible each month while interest is frozen or at 0% is fastest. If the debt cannot realistically be repaid, a Debt Relief Order writes off qualifying debts after 12 months, but it has strict limits and serious consequences for your credit file.
Can credit card debt be written off?
Sometimes. A Debt Relief Order, IVA or bankruptcy can write off credit card debt, and a creditor may accept a reduced full and final settlement. Each has costs and consequences, so check with a free adviser first.
Should I cut up my credit cards?
If you are trying to clear the balance, stopping new spending makes a real difference. You can ask the lender to stop or reduce your credit limit.