Paying off debt can be a daunting task, with many finding it difficult to adhere to a budget or even knowing where to begin. However, for those who are unsure, financial expert and TikToker Beth (@budgetjonesdiary_) has revealed her straightforward 'blueprint' for clearing debt.
Beth is a certified accountant whose goal is to assist people in saving money and "ditching their debt." In a recent post, Beth detailed her journey of paying off £18k worth of credit card debt and improving her credit rating.
She stated: "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."
She added: "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 a recent newsletter, Beth shared some practical debt repayment tactics. Here's what she had to say.
Beth's blueprint to paying off debt
Know your numbers
Beth stresses listing your debts, along with their corresponding interest rates and minimum payments. This would help in charting a feasible plan
She said: "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
Monitor your receipts and expenses closely to identify areas where you could save more and contribute towards the debt payment, Beth urges. To start, she shares her personal budget spreadsheet as a template.
Choose a payoff method
Choose a strategy which suits you best financially and psychologically, whether it's the debt snowball or debt avalanche method, advises Beth. The choice will vary based on whether you prefer smaller victories along the way or want to pay less overall.
Cut unnecessary expenses
Review your spending habits to identify and eliminate non-essential expenses, recommends Beth. She continued: "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 numerous ways to increase your earnings such as side hustles and part-time jobs, which can help speed up your debt payoff.
Beth explained: "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 suggests building up a small emergency fund to prevent sliding back into debt when unforeseen expenses crop up. She said further: "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 advises that you should share your objectives 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!!"
Further adding to her advice, Beth said: "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."
"Imagine 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."
