These are the eight things you should do to make paying off debt easier, according to an financial expert
Paying off debt can be a monumental task, with many struggling to stick to a budget or even know where to start. Fortunately, for those who don’t know where to start, money expert and TikToker Beth (@budgetjonesdiary_) has shared her simple ‘blueprint’ for paying off debt.
Beth is a chartered accountant and aims to help people save money and “ditch their debt.” In a recent post, Beth shared her road to paying off £18k worth credit card debt and building her credit score.
She said: “I’ve been really open and honest about my #debtpayoffjourney online, and this can sometimes feel quite awkward and unnerving (especially having friends, family and colleagues following me!!). But it’s my main mission to try and break the stigmas of talking about finances. So here’s to being vulnerable.
“I definitely tend to overspend when I’m feeling low, and when mum passed it was obviously the lowest point for me. I’ve learnt over time to give myself some grace and not have regrets for spending to make myself feel better and getting through a rough time.
“Along the way, I’ve learnt so much about personal finances, about myself and I’ve also created this amazing community of women on a similar path. It’s also such an amazing feeling when I’m able to talk about finances with my friends and it not feel weird or a bad thing.
“It wasn’t an easy process, but now I’m out the other side and 2024 has been such an amazing year for me so far. I’m super proud and grateful of all that I’ve worked for.”
In her latest newsletter update, Beth shared her helpful blueprint she used to paying off debt. Here’s what she had to say.
Beth’s blueprint to paying off debt
Know your numbers
Beth said you should take the time to list all your debts, including interest rates and minimum payments. This will help you create a realistic plan.
She added: “Often we can bury our heads in the sand and not want to look (I’ve been there), but facing up to your numbers is probably the biggest and most important step of your journey.”
Create a budget
Beth encourages everyone to track their income and expenses to identify areas where they can cut back and allocate more money to debt repayments. To get started, she shared her personal budget spreadsheet here.
Choose a payoff method
Beth recommends finding a strategy that works best for you, financially and psychologically, whether it’s the debt snowball or debt avalanche method. You may want small wins along the way, in which the snowball might be best. Or if you’re wanting to pay less overall, the avalanche is the one.
Cut unnecessary expenses
Beth says you should evaluate your spending habits and eliminate or reduce non-essential expenses where possible.
She added: “I personally went quite restrictive and cut out all non-essentials, because I really wanted the debt gone. But if you’re after a more sustainable journey, then maybe a half way might be ideal, cut back in some areas, other areas stay.”
Increase your income
There are a number of ways you can boost your income, including side hustles and part-time jobs, which will help accelerate your debt payoff.
Beth said: “This helped me sky-rocket as I was earning lots more money than I would usually. All spare income went to paying off my debt.”
Stay motivated
Beth said: “Set milestones and celebrate small victories along the way. Keeping your end goal in sight will help you stay committed.
“This may look like trackers you colour in so you can clearly see progress. Or even buying yourself a cupcake for every £100 paid off. Gotta take all the wins!!”
Build an emergency fund
Beth recommends saving a small emergency fund to avoid getting back into debt when unexpected expenses arise. She added: “I had my car breakdown more times than I can count and lumping more money onto my credit cards was not something I was happy doing.”
Seek support
Beth says you should share your goals with friends or family, or join online communities for accountability and encouragement.
She said: “The moment I shared my situation with family and friends, the easier it was to get cracking as I felt a weight had been lifted. People are generally more supportive when they know the full story. Also, creating a finance Instagram page was the best decision I ever made!!”
Beth added: “I won’t sugar coat it or say there’s one silver bullet to paying off debt quickly, because that wouldn’t be truthful to say. It is hard work, but let me tell you, oh so worth it.
“Imaging the life you’re going to lead after your debt is gone and how free you’re going to feel. THAT is what’s going to get you through.”
