Clever Debt Repayment Trick Could Wipe Thousands Off Your Credit Card Balance
Debt repayment trick to wipe thousands off your balance

Struggling with mounting credit card debt? A little-known repayment strategy could help you clear your balance faster and save hundreds—or even thousands—of pounds in interest.

The Power of the 'Avalanche Method'

Financial experts recommend the 'avalanche method' as one of the most effective ways to tackle multiple debts. Here's how it works:

  1. List all your debts by interest rate, from highest to lowest.
  2. Pay the minimum on all debts except the one with the highest rate.
  3. Throw every spare penny at the highest-interest debt until it's cleared.
  4. Repeat the process with the next highest-rate debt.

Why It Works

By targeting high-interest debts first, you reduce the overall amount of interest you'll pay over time. This method can shave months—or even years—off your repayment journey.

Real-Life Savings

Consider this example:

  • £5,000 on a card at 22% APR
  • £3,000 on a card at 18% APR
  • £2,000 on a card at 15% APR

Using the avalanche method could save you over £1,200 in interest compared to making equal payments across all cards.

Alternative Approach: The 'Snowball Method'

For those who need psychological wins, the 'snowball method'—paying off smallest debts first—can provide motivation through quick victories, though it may cost more in interest long-term.

Expert Tips for Success

Financial advisors suggest:

  • Setting up direct debits to avoid missed payments
  • Cutting back on non-essential spending temporarily
  • Considering balance transfer cards for high-interest debts
  • Seeking free debt advice if struggling

Remember: The best method is the one you'll stick to consistently. Whether avalanche or snowball, taking control of your repayments is what matters most.