Seeing the full amount you owe is the first step towards paying off credit card debt. List every balance, including credit cards, store cards, personal loans and arranged overdrafts. Record the current balance, interest rate, minimum payment and payment date for each account.
Use recent statements or online accounts to check each figure. For credit cards, note the APR and whether a promotional rate is due to end. For an overdraft, check the EAR and any daily or monthly charges. Also record arrears, fees and any missed payments, as these affect the cost and repayment plan.
Your credit report can help identify accounts you have forgotten or no longer use. Check reports from the main UK credit reference agencies for incorrect balances, duplicate accounts and accounts registered to the wrong address. Updraft’s app can show connected card and overdraft balances in one place, alongside payment tracking and a payoff timeline.
Add the balances to find the total amount owed. Then add the minimum payments to find the monthly amount required to keep accounts up to date. The interest rate alone does not show the full cost: a £2,000 balance at a high rate may cost more each month than a larger balance at a lower rate.
A simple table can show the position clearly:
| Account | Balance | Interest rate | Minimum payment | Payment date | |---|---:|---:|---:|---| | Credit card 1 | £2,000 | 24% APR | £60 | 15th | | Credit card 2 | £1,200 | 19% APR | £35 | 22nd | | Arranged overdraft | £500 | Variable EAR | Varies | Monthly |
Keep minimum payments up to date, then direct any extra money towards one balance. Paying the highest interest rate first generally reduces interest most quickly. Paying the smallest balance first can provide a simpler sequence of cleared accounts, although it may cost more overall.
Review the figures after each statement and whenever a rate, balance or payment changes. A fixed-rate consolidation loan is another option to compare, but assess the total amount repayable, arrangement fee, term and monthly payment against the existing debts. A lower monthly payment does not necessarily mean a lower total cost. Ensure that any cards included in a consolidation are actually cleared and that new balances are not built up.