Kent Financial Adviser Shares 8-Step Plan to Tackle Rising UK Household Debt in 2025

UK households are facing increasing financial pressure, with average unsecured debt (excluding mortgages) now standing at approximately £8,305 per household - a worrying trend despite a brief decline during the pandemic. Credit card balances average £2,579 per household, while total personal debt-including secured and unsecured borrowing - reaches around £66,892 per household. At the same time, credit card interest rates have surged to a near two‑decade high of 35.7% APR, making debt increasingly burdensome.

In response, Kent financial expert Louise Fitzgerald from Sterling & Law Tunbridge Wells offers an eight-step guide for individuals determined to manage - and reduce - their debt effectively.

Why This Matters

Rising debt levels - especially when paired with soaring interest rates - can rapidly erode financial security. “Debt doesn’t need to define your future,” says Louise. “With clear actions, even under pressure, it’s possible to regain footing and protect your wellbeing.”

Louise’s 8-Step Debt Recovery Plan:

1. Face the Facts
Start by listing all debts and respective creditors. If repayments exceed 20% of your net monthly income, it's a clear signal to act.

2. Build a Practical Budget
Outline your monthly income vs. expenses and determine a repayment plan you can actually follow without accruing more debt.

3. Re-evaluate Your Savings
Holding savings while carrying high‑interest debt is rarely wise. Use surplus savings to chip away at debt - but keep a small emergency buffer intact.

4. Control Weekly Spending
Withdraw a predetermined amount of cash weekly and secure your cards, helping curb impulse spending and stay on budget.

5. Streamline Bill Payment
Set up direct debits for utilities and regular bills - many providers offer discounts for this, and it's easier to manage.

6. Shop Around for Better Deals
Evaluate energy, water, and mobile suppliers annually - switching can deliver significant savings, especially before setting up direct debits.

7. Explore Lower-Interest Credit Options
Given the current 35.7% APR on credit cards, consolidating debt into a lower‑rate personal loan could save you substantial interest over time.

8. Cut Up High-Interest Store Cards
Store credit cards often carry exorbitant interest. Eliminating them helps prevent further debt accumulation.

The Core Principle

Don’t take on new debt while paying off old debt. Clear what's outstanding before rebuilding savings or pursuing new financial goals.

“Real progress starts when you face debt honestly and make a plan,” says Louise Fitzgerald. “It takes discipline, but by committing to these steps, you can transform your financial story - and open up space for future fulfilment.”

Louise is offering complimentary 30-minute “financial health check” sessions for Kent residents over the next month - perfect for crafting personalised debt reduction strategies and action plans.

Louise Fitzgerald is an independent financial adviser with Sterling & Law Tunbridge Wells, specialising in retirement planning, pensions, and financial wellbeing. The business is committed to helping individuals and families make informed, confident financial decisions, with a strong focus on transparency and trust.

Contact Details

Name: Louise Fitzgerald
Business Name: Sterling & Law Tunbridge Wells
Email: [email protected]
Phone: 07891 039 256
Website: www.sterlingandlaw.com/locations/financial-advice-tunbridge-wells
Instagram: www.instagram.com/louise.fitzgerald_ifa

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