How to Beat Credit Card Debt as Borrowing Hits Record Highs
Five ways to beat credit card debt as borrowing hits record high. Expert tips could save people with credit card debt thousands.
- Latest data shows the cost of borrowing on credit cards soars to new record
- In the UK, online consumer searches for “credit card debt” have risen by 12%
- Updraft Founder advises how best to overcome credit card debt
Credit card borrowing has quietly become one of the most expensive forms of consumer debt in the UK. According to the latest report, the average purchase APR rose to 35.7% in June 2025, which is the highest figure recorded since tracking began in 2006.
This means that even modest balances are now attracting significant interest, and many households are paying far more than they realise just to maintain their current level of debt. The rising cost of credit card borrowing is showing up in real life, with a 12% surge in UK searches for “credit card debt” over the past year, now reaching 34K queries monthly.
Aseem Munshi, our Founder at Updraft, shares the best and safest ways to handle credit card debt.
Why are APRs so high right now?
Aseem explains: “Interest rates are still high, and even though inflation has cooled a bit, the Bank of England base rate remains elevated which is putting pressure on unsecured lending.
“Lenders are responding with risk-based pricing by tightening their criteria and raising rates for everyone except the most creditworthy borrowers.
“And with the cost of living rising, more people are turning to credit just to cover everyday essentials, so the credit card industry is adjusting for that risk by raising costs.”
The credit card debt trap: How people usually get stuck
Aseem says: “Credit cards are sold as flexible and convenient, but for many people, they quickly become a long-term burden.
“Minimum repayments can trap you in debt for years, interest compounds quietly every month, and those attractive introductory offers disappear before you know it. Add multiple cards into the mix, and suddenly you’re juggling fragmented, hard-to-manage debt.”
“We’re not just here to help you clear your debt – we’re here to help you build the strength to get back on your feet. We’ll give you simple tools to cut through the confusion, find your balance again, and step forward feeling confident about your future”
Aseem Munshi
Updraft Founder & CEO
Five practical steps to start tackling credit card debt today
1. Get clarity: List all debts and rates
Aseem explains: “Start with a simple spreadsheet or a finance app. List all your credit cards, balances, interest rates, and minimum payments.
“Awareness is step one. You can’t fix what you don’t fully understand.”
2. Stop the bleed: Avoid new spending on credit
“Try not to add to your balances. Use a separate debit account for essentials to avoid building more debt as you work to pay it down.”
3. Target the highest interest first
“If your highest card interest is over 30% APR, prioritise paying down that card. Even an extra £20-£50 per month can make a dent and save hundreds in interest.”
4. Consolidate strategically: Consider a smarter loan
A single, lower-interest loan to pay off high-cost credit cards can give you:
- Fixed monthly payments
- A clear end date
Updraft aims to offer exactly this – a regulated, transparent loan designed specifically for paying off credit cards and overdrafts, as Aseem explains:
“We created Updraft to offer people a way out, not another trap. It’s a single loan that replaces multiple cards, and no surprises.”
5. Be wary of ‘too good to be true’ balance transfers
Aseem says, “0% balance transfer cards seem appealing, but they usually charge fees (typically 2-3% of the balance), the 0% period may end after 12-18 months, and if you miss a payment, your rate could shoot up.
“These options can work if you’re disciplined, but they’re often a ticking time bomb. Updraft is built to offer predictable, long-term relief.”
Aseem concludes: “Millions of people in the UK are grappling with debt, especially as costs rise and pay struggles to keep up. The important thing is to take action early, seek support, and choose tools that help you reduce, not increase, what you owe.”
Say goodbye to hidden fees and hello to one loan with Updraft
We aren’t a typical loan provider or credit card company. It’s a lender and personal finance platform that helps users:
- Understand their borrowing habits
- Avoid predatory debt products
- Consolidate high-cost borrowing into one manageable loan by conducting thorough affordability assessments before lending
Final Thought
Want to take control of your money? If you’re looking to consolidate credit card debt and cut down on high interest, download the Updraft app today.
Representative example
26.5% APR representative based on a loan amount of £10,000 over 60 months at a fixed interest rate of 21.9% p.a. This would give a monthly repayment cost of £286.65 per month, with a total cost of credit of £7,198.74 (includes loan fee of £400) and a total amount repayable of £17,198.74.
All figures are representative, the rate you are offered will depend on an assessment of credit worthiness and affordability. Terms and conditions apply.
Updraft Awards & Recognition
Recognised for helping UK borrowers take control of debt.
