Chapter 2 of 11 in the Personal Finance Curriculum.
Eliminating Debt
Clear the decks so every pound you earn works for you, not your lenders.
What you'll learn
- Why a 24% credit card APR doubles your debt every three years
- How 0% balance transfers and the avalanche method clear debt fastest
- Why the new FCA rules on Buy Now Pay Later change the credit-score landscape
- Whether overpaying your student loan actually makes financial sense
Clear Credit Card Debt UK
ArticleBeat the 24% APR trap. Snowball vs avalanche, 0% balance transfers, and when to consolidate via personal loan.
Buy Now Pay Later UK
ArticleHow Klarna and Clearpay encourage overspend, the late-fee model, and why the FCA finally regulates BNPL credit from 2026.
What is APR?
Short LessonUnderstand what APR is and what borrowing actually costs you over time.
UK Overdraft Charges Explained
ArticlePost-2020 reform put arranged overdrafts at 40% APR, worse than most credit cards. How to clear yours and switch banks.
Good debt vs bad debt
Short LessonLearn a simple test for which debt to fear and which can be tolerated.
Should I Pay Off My Student Loan?
ArticleWork out whether overpaying your student loan actually makes financial sense.
How to pay off debt: snowball vs avalanche
Short LessonLearn the two main ways to order debt repayment - snowball and avalanche.
Debt Payoff Calculator
Compare snowball vs avalanche strategies and see which clears your debts faster.
Read the guideHow US student loans work
Short LessonKnow the difference between federal and private student loans, how interest accrues, and why federal protections matter before refinancing.
Knowledge check
Test what you learned
1. Why is high-interest credit card debt usually a priority to clear?
2. The "avalanche" method of paying off debt means:
3. A key risk of Buy Now Pay Later is that it can: