To clear debt on a normal salary: list every debt with its interest rate, cover the minimums, then put every spare pound on one debt at a time. Most people save the most by targeting the highest-interest debt first (the avalanche), though clearing the smallest balance first (the snowball) can feel more motivating. Pick one and keep going.
Can you really clear debt on an average UK salary?
Yes — and you don’t need a pay rise or a windfall to do it. What you need is a clear, dated plan and a bit of breathing room in your spending. Most people’s debt feels worse than it is because it’s a vague, anxious blur. Turn it into a list and it shrinks from a monster into a to-do.
In the book, a character called Marcus does exactly this with a stubborn overdraft he’d been carrying for years. Nothing dramatic — just a plan, a date, and a few months of chipping. That’s all most of us need.
A step-by-step debt-clearance plan
- List every debt. Credit cards, overdraft, Buy Now Pay Later, loans, that money you owe a mate. For each, write the balance, the minimum payment, and the interest rate (APR).
- Find your spare pound. Use your spending plan to find an amount — anything — you can throw at debt each month on top of the minimums.
- Pay minimums on everything. This keeps you out of trouble and protects your credit file.
- Attack one debt at a time. Put all your spare money on a single target debt while paying minimums on the rest. Clearing them one by one is far more motivating than nudging them all down at once.
- Roll it over. When one debt’s gone, take everything you were paying on it and pile it onto the next. This “rollover” is what makes the last few debts disappear fast.
Should I pay off the highest interest or the smallest balance first?
Both work. They just optimise for different things:
- Avalanche — pay off the highest-interest debt first. This costs you the least in interest, so it’s mathematically the fastest and cheapest.
- Snowball — pay off the smallest balance first. You lose a little to interest, but you get quick wins that keep you going.
If your most expensive debt is also fairly small, you’re in luck — both methods point the same way. If you’ve struggled with motivation before, snowball’s early wins are worth the small extra cost.
What about overdrafts and Buy Now Pay Later?
Overdrafts are sneaky because they don’t feel like debt — they just feel like “my normal balance.” But many arranged overdrafts charge around 39.9% APR, which makes them some of the most expensive money you can borrow. Treat your overdraft as a real debt to clear, then build a small buffer so you never dip back into it.
Buy Now Pay Later (Klarna, Clearpay and friends) is the other quiet trap. “Pay in 3” feels free, but it spreads a habit across your whole month until you lose track of what you actually owe. Add every BNPL balance to your debt list so it can’t hide.
Want a dated payoff plan? The calculator shows your order and finish date.
Want it built around your numbers, with someone in your corner? That’s what the M&G Financial Control Reset is for.
What about 0% balance transfers?
A 0% balance transfer can be a brilliant tool — it pauses the interest so all your payments hit the actual debt. But it only works if you (a) have a clear plan to clear the balance before the 0% period ends, and (b) stop spending on the card. Used with a plan, it speeds things up. Used as a way to avoid the problem, it just moves it. Clearing the debt is step three of the M&G System — once it’s gone, you build your buffer.
Want a dated payoff plan? The calculator shows your order and finish date.
Want it built around your numbers, with someone in your corner? That’s what the M&G Financial Control Reset is for.
Frequently asked questions
Should I save or pay off debt first?
Usually, clear expensive debt first — paying off a 39.9% overdraft beats earning a few percent in savings. The one exception: keep a tiny starter buffer (even £100–£500) so a surprise bill doesn’t push you straight back into borrowing.
Will paying off debt hurt my credit score?
No — paying down debt generally helps your credit profile over time. Keeping accounts in good standing and lowering how much of your available credit you use are both positives.
What if I can’t even afford the minimum payments?
That’s a different situation, and you don’t have to face it alone. Free, confidential help is available from organisations like StepChange and National Debtline — speaking to them early gives you the most options.
Your next step
If you’d like a plan built around your numbers — with someone in your corner to keep you on track — the M&G Financial Control Reset is a five-session, one-to-one programme, £297 flat fee. Work with me →
Money & Growth 101 is plain-English personal finance for your 20s and 30s — no jargon, no shame, just a clear next step.
What debt should I pay off first?
Usually the one with the highest interest rate, since it costs you most. Clearing the smallest balance first can help if you need quick motivation.
Snowball or avalanche — which is better?
Avalanche saves the most money; snowball gives faster wins. The best one is the one you’ll stick to.
Should I save or pay off debt first?
Keep a small buffer, then prioritise clearing high-interest debt — it usually costs more than savings earn.
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Mustafa Alsoodany is the founder of Money & Growth 101. By day he’s worked in financial crime and compliance at banks and fintechs — JPMorgan, Monzo, Starling and Barclaycard among them — and holds the ICA Advanced Certificate in Anti-Money Laundering at Distinction. He started Money & Growth 101 to do the opposite of the day job: make money plain, jargon-free and genuinely doable for people in their 20s and 30s who were never taught it.