This year I was hoping to solve my credit card debt fiasco. Yeah, that’s not happening. I have been fighting a losing battle with my credit card for over two years now. And I like to think I am financially educated, but just because I’m educated doesn’t mean I don’t make questionable decisions.

In this post I will summarise the methods I tried to solve my debt, and my resolving method which will end the credit card debt. If you’re interested in how I manage my budget, then I am happy to show my simple spreadsheet

How did I end up here?

Over 2 years of credit card debt, and counting

How I ended up here?

Life events + no early financial education + a scarcity mindset (attributed to my childhood) = An evolving adult with a four-figure credit card debt.

My biggest issue is my scarcity mindset. That is the thing that dictates most of my non-essential spending. I prioritise saving so much, because I grew up in a household where money was talked in a negative way and that it was limiting. This is no shade to my parents they did the best they could, with what they knew about money and the situations they were in. But alas, I have internalised that, and I am working to sort it out. But whilst trying to work on it, I have to live, and thus it dictates my spending.

Choosing to save, over choosing to pay the debt seems insane. But it calms me down that the little savings I do have, can help me in an emergency, and reduce my reliance on my credit card.

Situation: Let’s say I choose to pay off my debt and not save anything. Life happens and it doesn’t care whether or not I have savings. And something happens that I need to spend money on. Since I have no savings, I have to rely on the credit card. And then I have no savings and a credit card debt. And again, life will hit, and then what to do I do? My credit card limit is still small because I am still early on in my credit journey, and I have nothing saved.

This is literally the scenario that has dictated my finances. And it doesn’t help, that life has proven that scenario does happen, and I’m grateful I chose to save, because it could have been so much worse. So, I have the debt, and as things have been reasonably calm, I have been happy to throw some money at my existing debt.

What attempts have I tried and failed with?

Overpayments

This is where you over pay each month. My direct debt is still £180 per month to the card. My expenses on my card are around £70. So, I overpay by £110. The way I budget my salary, I make sure to have some leftover cash. It would be lovely to have that for savings or an unplanned take out, but I put it towards my credit card. At any given month I was paying between £200 and £400 per month to my credit card.

But those weren’t my biggest snowballs. In late 2024 and 2023, I decided to live incredibly below my means and pay £1000 per month to my credit card. I got so close both times (<£800 left to pay), but then Christmas came. I decided, I did not want to do that again in 2025, hence the £400 maximum. Because living below your means like I did is fine in the short term, but after 2 months it was destroying my health both physically and mentally.

Not using it

I believe I am fortunate enough to be able to live off my salary, and still be able to save and invest, without needing my credit card. And yet, I still have the debt. This is a method I tried in 2025, whilst paired with the smaller overpayments. I tried to stop using my credit card. Which was actually very easy, because I only used it ‘actively’* for large/emergency purchases. These are like my groceries on the last week before payday. Or an unexpected tyre repair.

*’Actively’ using my credit card is me purchasing with intent. ‘Passive’, is me keeping the credit card active to maintain the credit history. So passively using it means paying small subscriptions (Disney+, Kindle, Audible and my gym).

This worked for 2 months and then boom. The unexpected expenses came. Don’t get me wrong I am actively trying to build savings to ensure that I can pay off small, unexpected expenses, like a tyre. But until then, I rely on my credit card. So, this didn’t work either.

Stopping and trying again differently, can be better than sticking to something that doesn’t seem to be working.

Where next?

Balance transfer

Now, you’re probably wondering ‘Rue, why would you open another credit card?’
And my response ‘Because of the interest’.

I paid on averaged £300 x 10 month = £3000 to my credit card. Bearing in mind I started the year with a balance of about £2800.

I already said my passive spending on my card is £70. And at my most vigilant I was barely using my credit card (no more than £20). But each month I was being charged between £50 and £110 of interest. So, in a given month, only £190 (of my £300) went to the actual balance on my credit card. The rest was eaten by the interest.

So, opening the balance transfer was the best thing. I have 2 years and 10 months to pay off my debt and not have any interest charged in that time. I have calculated if I pay £300 per month, it will be done by October of next year (this includes a £1100 starter).

How was it?

It was very easy to open one, especially since I checked my eligibility with one of the big 3 credit bureaus (TransUnion, Experian and Equifax). I then checked each company they recommended to me, on their own website (as they have their own eligibility check) and picked the one with the longest time. I didn’t need any perks from the card, so I didn’t go for one that gives points, as I don’t want to use this card, other than to pay off the debt.

At the end, I won’t close the card, because it will hold a part of my credit history. And in this day and age, a credit history regardless of what shape it’s in, is good for house buying, loans and other financial means of borrowing. I will probably just move my Kindle subscription to that card, just so it stays active ‘passively’.

TL;DR

- It’s ok to give up on a method, and try tackle the problem differently

- I have taken on a balance transfer credit card, because the interest was preventing me from achieving my goals

- Life events + minimal financial education + scarcity mindset = my four-figure credit card debt

Adulting with credit card debt