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Approximately 63% of UK adults currently have some form of debt. Be it a credit card debt or an outstanding personal loan, debt can become crippling if you don’t take steps to stay in control. As such, we introduce some of our top tips on how to get out of debt below, which we hope you will use to take back control of your personal finances.

Create a monthly budget 

If you’re serious about taking back control of your finances, you need to begin with a budget. A budget doesn’t need to be anything complex; a simple spreadsheet with your income and expenditure will suffice to get you started. List your income to one side, and then get to work on your expenditure. The key to budgeting is to start with your essential expenditure and work from there. Your essential categories are likely to include: 

  • Mortgage payments/rent 
  • Council tax 
  • Utility bills 
  • Groceries 
  • Transport 
  • Internet & phone 
  • Debt servicing 

You can then create a non-essential list that includes things like: 

  • Gym membership 
  • Dining out 
  • Monthly savings contribution 
  • Holidays 
  • Leisure activities 

Splitting your expenditure into essentials and non-essentials is a significant step as it allows you to see where your money needs to go every month. When things are tight, you need to live within your means and reduce as much expenditure from your non-essential list as possible.

Stop borrowing money

Once you’ve got your finances in order, it’s time to stop borrowing money. Whether taking out a loan or swiping your credit card, borrowing money enables you to spend money that you don’t actually have. So, if your goal is to work your way out of debt, you need to stop borrowing in the first place. Start by living on a cash basis and within your means. While you might have to sacrifice some luxury and non-essential items, stopping borrowing is actually one of the quickest ways out of debt.

Pay more than the minimum repayment 

It can be all-too-easy to fall into the trap of making the minimum monthly repayment on your debt, whether it’s a credit card or loan. While this is enough to keep your head above water, it doesn’t take into account the interest repayments that you’re liable for and won’t actually help you get out of debt in the long run. When you’re creating your monthly budget, make sure you allocate enough money to pay more than the minimum amount as stipulated by your lender. 

Work some side hustles 

When you’re hoping to pay off your debts, one of the best ways to go about it is to earn more money. Research shows that people with side hustles add on average £6,300 to their earnings each year, which equates to £525 per month. Whether it’s article writing or pet sitting, an extra £500 per month will do wonders to help you get out of debt. Get started on a freelancing platform like Fiverr and see if you can add to your monthly income by launching a side hustle.

Consider a debt consolidation loan 

Debt consolidation can be an effective way to simplify your existing debt and potentially save money. You can borrow money from a single source that you can then use to pay off various debts that are outstanding, be it credit card debt or car financing, for instance. You are then only required to pay off the debt consolidation loan that you’ve just taken out, which makes it so much easier to manage your finances.


At Koyo Loans, we provide unsecured personal loans of between £1,500 and £12,000 that can be used for debt consolidation. 24.9% APR Representative. You can use our loan calculator to see how much you could potentially borrow today, which will hopefully help you restructure your debts and take back control of your finances. It’s commendable that you’re taking steps to get out of debt, and we hope you’ve found these tips helpful.

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