Debt repayment trick will wipe all your credit card balances
With the economy being so uncertain, now more than ever, you need to be financially secure. A great way to increase financial security is to repay your debt, but it's not easy, is it?
I've been fascinated by human behaviour for as long as I've been a financial planner. The two go hand in hand in so many ways, because we are physical beings run by our emotions.
Therefore, when it comes to debt repayment, we need to be aware of this because repaying debt won't happen overnight, and we can easily 'yo-yo debt' – pay a little off and put it right back on!
I use a process that's different to most others when it comes to getting debt-free, because it focuses on making you feel good as you go along your debt repayment journey.
It's called the snowball system, because your little decisions initially build to make a big difference.
Don't be frozen with fear
The first thing you must do is face reality. We must plan from where we are today, not where we wish we were. We can't change the past, but we can make different decisions about our future. Our past behaviours do not need to reflect our future behaviours; we have a choice.
Get to know your numbers and make a spreadsheet. List for each credit card or loan you have: the outstanding balance, the minimum monthly payment, and the interest rate. There's a free spreadsheet at WarrenShute.com to help you with this.
Next, try to get the best interest rate you can with each provider. Call them and see if they can reduce the rate you're paying.
After that, you must find a way to have more coming into your account than going out; you need a surplus at the end of the month. You may have to make sacrifices. Just remember the end goal, and those sacrifices will be more than worth it.
Consolidation is cold comfort
I'm not a fan of debt consolidation (loading all your debts onto one credit card or loan) even if it's an interest-free arrangement. By keeping your debts separate, when you pay each one off, you get a win; a feeling of: "Yes, I did it!"
We still like praise, even if it's from ourselves. If you consolidate your debts, that win comes so much further down the line. Emotionally, that's a lot tougher.
All downhill from here
Once you've got your spreadsheet, arrange your debts in order from smallest balance first to largest balance last – NOT in order of interest rate.
For each debt, set up a Direct Debit to pay off the minimum amount every month, to make sure you're not incurring any extra fees.
To attack your debt, you pay your snowball – the surplus money you have left over each month – onto the smallest balance first. Your aim is to rapidly and aggressively do whatever it takes to pay that smallest debt off.
Why? To get a quick win and a dopamine boost. You'll start feeling good about the process and you'll be more likely to stay on the plan and not 'yo-yo'.
Once your smallest balance is gone, congratulate yourself – you've achieved something great. Repeat this and you'll get rid of your debts one by one, each time feeling that little bit freer.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mirror
5 days ago
- Daily Mirror
Debt repayment trick will wipe all your credit card balances
Warren Shute is a multi award-winning Chartered Financial Planner, Certified Coach, author of The Money Plan, and Sunday Mirror columnist With the economy being so uncertain, now more than ever, you need to be financially secure. A great way to increase financial security is to repay your debt, but it's not easy, is it? I've been fascinated by human behaviour for as long as I've been a financial planner. The two go hand in hand in so many ways, because we are physical beings run by our emotions. Therefore, when it comes to debt repayment, we need to be aware of this because repaying debt won't happen overnight, and we can easily 'yo-yo debt' – pay a little off and put it right back on! I use a process that's different to most others when it comes to getting debt-free, because it focuses on making you feel good as you go along your debt repayment journey. It's called the snowball system, because your little decisions initially build to make a big difference. Don't be frozen with fear The first thing you must do is face reality. We must plan from where we are today, not where we wish we were. We can't change the past, but we can make different decisions about our future. Our past behaviours do not need to reflect our future behaviours; we have a choice. Get to know your numbers and make a spreadsheet. List for each credit card or loan you have: the outstanding balance, the minimum monthly payment, and the interest rate. There's a free spreadsheet at to help you with this. Next, try to get the best interest rate you can with each provider. Call them and see if they can reduce the rate you're paying. After that, you must find a way to have more coming into your account than going out; you need a surplus at the end of the month. You may have to make sacrifices. Just remember the end goal, and those sacrifices will be more than worth it. Consolidation is cold comfort I'm not a fan of debt consolidation (loading all your debts onto one credit card or loan) even if it's an interest-free arrangement. By keeping your debts separate, when you pay each one off, you get a win; a feeling of: "Yes, I did it!" We still like praise, even if it's from ourselves. If you consolidate your debts, that win comes so much further down the line. Emotionally, that's a lot tougher. All downhill from here Once you've got your spreadsheet, arrange your debts in order from smallest balance first to largest balance last – NOT in order of interest rate. For each debt, set up a Direct Debit to pay off the minimum amount every month, to make sure you're not incurring any extra fees. To attack your debt, you pay your snowball – the surplus money you have left over each month – onto the smallest balance first. Your aim is to rapidly and aggressively do whatever it takes to pay that smallest debt off. Why? To get a quick win and a dopamine boost. You'll start feeling good about the process and you'll be more likely to stay on the plan and not 'yo-yo'. Once your smallest balance is gone, congratulate yourself – you've achieved something great. Repeat this and you'll get rid of your debts one by one, each time feeling that little bit freer.
Daily Mirror
26-07-2025
- Daily Mirror
Pension rule shows how much money you're missing for happy retirement
Warren Shute is a multi award-winning Chartered Financial Planner, Certified Coach, author of The Money Plan, and Sunday Mirror columnist Not surprisingly, I'm a big believer in planning. That's especially true when it comes to the golden years of our retirement. But will those years really be golden, or more like copper?! It is during times like these that it is especially important we make time to think and plan our future finances. I am in the fortunate position to have shared the retirement plans of many over my 30 years as a financial planner. I know, I don't look that old! Meeting these people has shown me some patterns, things people have had in common to help them enjoy a successful, vibrant retirement. You can benefit from that experience, and plan ahead to help make your retirement the best years of your life. Know your number How much will you need to have saved to enjoy a comfortable retirement? I call this your number and it's unique to you because it depends entirely on your retirement plans. You can calculate your number by writing down all the things you expect to spend in your retirement years. That may seem difficult but if you break it down into a plan it will become clearer. Some costs you'll know, like utilities. Others you'll need to estimate. And this is where those patterns come in. Life's chapters In my book The Money Plan I refer to the three chapters of our retirement. In your first chapter of around 10 years, you'll likely be more active and want to travel more often and further afield – play out your bucket list – so you'll spend more. I enjoy receiving emails and postcards from my clients as they travel the world. I get to enjoy their retirement with them. The second chapter often begins around 75 and typically sees less travel, or at least less long-haul, which reduces costs. However many people take up new hobbies around this age. It may be caring for grandchildren, photography, learning a musical instrument or golf. During the third chapter, around 85 onwards, expenditure is more about getting around and help within the home. Do we keep a car or not? Do we need a cleaner or gardener? Medical spending is often the overriding cost. Once you've added up all your projected costs, you can plan your monthly budget. Use the free Cashflow App at or download a spreadsheet to help. Do you have enough? To cover these costs you will have a mixture of your state pension and any private pensions. Request updated statements to see where you are now. If you remember having a pension but can't find the details, try the free pension tracing service – If you have enough now, you could ask why do you continue to work? If you're short, calculate how long would it take to meet the shortfall using the rule of 300: multiply how much you're short each month by 300 to see how much more you need to save. So if you need an extra £200pm, you need to target an additional £60,000 in your pension (£200x300). For a more accurate picture, you can use my free cashflow app at Start planning your retirement now – not just by knowing your number and saving but by deciding how you will live the rest of your life. We only get one chance, so make it count. For more retirement planning ideas visit
Daily Mirror
19-07-2025
- Daily Mirror
'I'm a money expert - 3 simple rules will help you become instantly richer'
Multi award-winning Chartered Financial Planner, Certified Coach, author of The Money Plan, and Sunday Mirror columnist It's time to get serious about your money... The cost of everything has increased, yet wages and pensions haven't kept up. It's tough out there. Therefore it's essential you know your numbers – money isn't as complicated as you might think. Clarity gives you the ability to make better decisions and live the life you want to live. We can't put life on pause because the economy is out of whack. I often refer to ALIE as every financial planner's best friend: assets, liabilities, income and expenditure. The hardest step is the first one – so where should you begin? Get organised Start by working out what's coming in and what's going out. If you're struggling financially, or anticipate you will be soon, it's so easy to bury your head in the sand and ignore the problem. It's also the worst thing you can do. List all of the money coming in and going out every month (some of the online-only banks can automate this process for you) so you know where you stand. You might even find direct debits for things you stopped using long ago. Look through credit card statements – regular payments made by a credit card can often be missed when you review your expenditure, make sure you include these too. Next, look at what you owe and what you own. If you've got outstanding debts, write them down. Make sure you're on the lowest interest rate you can get by contacting any credit card providers. It's fair to expect interest rates to start to reduce, therefore your borrowing costs may also reduce. Take this opportunity to review the market and consider a better deal. Finally, don't forget to organise what you own, including which companies your pensions are held with. Get the best deals and tips from Mirror Money WHATSAPP GROUP: Get money news and top deals straight to your phone by joining our Money WhatsApp group here. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don't like our community, you can check out any time you like. If you're curious, you can read our Privacy Notice. Cut outgoings Go through each item of expenditure and ask yourself three things: Do I need this? Do I want this? Can I get a similar experience for less? Unless you plan to rely on savings, you've simply got to have more coming in than going out. If you're taking a financial hit at the moment, that might mean making tough choices and some cuts you don't want to make. Your TV subscriptions might need downgrading, or that phone upgrade might just have to wait. Also, consider reviewing your energy bill and fuel costs. I regularly look at the price of the electricity I use and I shop around to get a better deal. Remember, if you're struggling, this period doesn't have to last forever; it's to get you through this difficult time until you're back on an even keel. Increase incomings At the same time, think about any ways you can improve your earnings. Thanks to the likes of eBay, Vinted and Facebook Marketplace, it's never been easier to sell unwanted items my 18-year-old daughter sells her unwanted clothes on Vinted and Depop, I am sure you can too. If you're on a modest income, have lost your job or have children, it may be worth checking out the website to check your eligibility for any benefits. It's a great resource that may surprise you. And you could also consider any online training or upskilling you could do to improve your salary in the future, or returning back to full-time education using the Advanced Learner Loan at If you already have a skill, you could consider a side hustle using sites like or Armed with information, you can improve your financial position and make it through the storm, you may decide to carry on your new habits to build the financial future you desire.
