UK Credit Card Borrowing Surges 12.1% – Here’s How to Clear Your Debt

Credit card borrowing in the UK rose at the fastest annual rate in almost two years, according to new data from the Bank of England.

Net borrowing increased 12.1% to £2.1 billion in November 2025, up from £1.7 billion in October.

Experts suggest that more people borrowed in the lead-up to Christmas to cover expenses over the festive period.

Households are still facing mounting financial pressure amid the rising cost of living.

Although the UK’s annual inflation rate fell to 3.2%, it’s still above the official 2% target set by the government.

How to Clear Your Credit Card Debt

Many households use credit cards to cover their expenses. In fact over 400 million credit card transactions were made in September 2025, 1.7% more than the year before.

So, you’re certainly not alone if you use a credit card. But it’s important to keep on top of your repayments to avoid debt becoming unmanageable.

Some of the ways to manage your credit card repayments are:

1. Check what you owe
Be clear on exactly how much you owe and how much interest you might need to pay.

This gives you a clear picture of how much you need to repay each month. You can do this by going through your credit card statements or using a budgeting app.

2. Pay the most expensive debt first
If you use several credit cards, paying the most expensive debt down first will bring down the cost of your overall debt.

It’s still important to make at least the minimum repayment amount on the others while you do so to avoid missed payment charges and a negative impact on your credit score.

3. More than the minimum
Only repaying the minimum required by your provider each month means that you’ll rack up extra debt through the interest charged on what you owe.

That means it’ll take much longer to clear your debt. Where possible, clear your monthly balance in full or increase the amount you pay each month above the minimum required payment.

4. Make your debt cheaper
Using a 0% balance transfer credit card or a debt consolidation loan could help you reduce the amount of interest you pay on debt.

A 0% balance transfer allows you to pay no interest for a set number of months.

However, you’ll need to pay a fee, which could range anywhere between 3%-5% of the balance you want to transfer.

Similarly, a debt consolidation loan offers cheaper interest but must be paid off within the loan period.

5. Get help
If you’re worried about your debt, it’s important to act quickly. Speaking with your credit card provider could help you find affordable repayment options.

You can also get free debt advice from organisations such as Step Change and Citizens’ Advice. Where a specialist will review your circumstances to help you find the best option.

Check our latest podcast episode How to Banish Debt & Transform Your Finances for more tips.