Knowing where to start is often the hardest part of debt management. Let’s get you a plan to free up some of that mental load and get you back in control. One that’s realistic, manageable and built around your life.
Sound good? Here’s how to make a payment plan for debt. And how to stick to it.
Can I create my own debt management plan?
Yes. While there are formal debt management plans available through charities or financial providers, you can absolutely create your own. It’s about understanding what you owe, what you can afford and how best to tackle it.
Step 1: List your debts
Write down everything you owe. Credit cards, loans, overdrafts, store cards. For each one, note the balance, the interest rate, the minimum monthly payment and the due date. This gives you a full picture of where you stand.
Step 2: Choose a repayment strategy
There’s no one-size-fits-all, but here are two popular methods:
Snowball method: pay off the smallest balance first for a quick win, then move on to the next.
Avalanche method: focus on the highest-interest debt first to save money in the long run.
Pick the one that fits your mindset and goals. The best plan is the one you’ll stick to.
Step 3: Build a realistic budget
Look at your monthly income and expenses. Identify the essential spends like housing, food and transport, then work out what’s left.
Trim what you can. Cancel subscriptions you don’t use, cook at home more often, swap out a few luxuries. This isn’t about cutting everything. It’s 2025, we all need a little treat. This is just about freeing up a little extra to put towards debt.
Step 4: Set up your payments
Now you’ve picked your strategy and found your spare cash, put it into action. Automate payments if you can – it’s one less thing to remember and helps you stay consistent.
If your repayments don’t cover more than the minimum, look at other options like consolidation or talking to a debt charity for support. You can get free, independent financial advice from your local Citizen’s Advice Bureau, National Debt Line (0808 808 4000), StepChange Debt Charity (0800 138 1111) or moneyhelper.org.uk.
Step 5: Track progress and stay motivated
Ticking off debts not only feels great, it builds momentum. Celebrate small wins. Even one cleared balance is a huge step forward. Reminder: you’re never too old for a star chart.
Common challenges
Unexpected costs: keep a small buffer in your budget for emergencies.
Motivation dips: try using a debt tracker or visual goal to see your progress.
Temptation to borrow again: remove stored cards from websites, apps and your digital wallet and avoid new credit if you can.
How Zilch can help
Pay over 6 weeks: spread the cost of any spends that come up over 6 weeks, without interest – fees may apply. It’s a manageable payment plan that you’re in control of.
Pay over 3 months: just like 6 weeks, but 3 months. Feel the hit even less with more time.
Pay now: earn up to 5% back in Zilch Rewards each time, make your money work harder and ease the pressure on your budget.
Built-in reminders and clear due dates: stay on track and avoid late fees. It’s easy to manage your payments in the app, we send handy reminders and automatically take your instalments from your linked bank account, so it’s one less thing to worry about. Snooze: Want to buy a little time? You can Snooze payments for up to 8 days – just make sure you hit that Snooze button 24 hours before your payment is due.
Zilch isn’t a debt solution, but used mindfully, it can help support a broader plan to manage and reduce debt responsibly.