‘I was in £16k worth of debt as a single mum – here’s how I paid it off in just 2 years’

Mirror journalist Jackie Annett shares how she dug herself out of debt ahead of Debt Awareness Week (March 24 to 30) in the hope it might help others become debt free

More than eight million people in the UK are in debt, and sadly, that comes as no surprise to me as 17 years ago, I was one of them.

I was drowning in £16,000 worth of debt with no idea how I was going to pay it off but fast forward to today and I’m debt-free – apart from the mortgage on my house. Once I knuckled down I paid it all off in two years – this is how I did it.

First things first, you need to face the debt head-on and work out how much you owe to various lenders. Once this first step is completed, many experts recommend drawing up a budget. This could be an old-fashioned spreadsheet or a free budgeting app – there are loads to choose from, including Plum, Snoop and Emma.

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Money Saving Expert Martin Lewis says this step is essential: “Once you know where you’re spending, you can start to alter and prioritise what you do with your money to enable you to stick within your means.”

But, rather than just accepting the debt, people should also speak to their lenders to see if there is any leeway, as they could end up knocking thousands off their final bill.

Then focus on clearing the debt that costs the most. Martin agrees: “Put all your spare cash towards getting rid of that highest interest rate and pay minimum payments on the others. Don’t pay off the big one, pay off the highest interest one.”

10 steps to becoming debt-free:

1. Work out the debt, start a budget, and draw up a plan. Be realistic about how much you can pay back.
2. Phone your creditors. They might agree to lower the interest rate or consolidate more than one debt into one lower payment.
3. Pay off the loans with the highest APR first. Some people recommend starting with smaller debts, but the first option will save you more in the long run.
4. Think of ways you can earn more money – look at ways to increase income. This could be a second job or renting out unused assets like a room, unused space or driveway.
5. In addition to coming up with a consolidation plan to pay off debt, people should consider transferring debt onto credit cards with zero per cent interest.
6. Do a direct debit detox – millions of Brits never use their digital TV subscription or use it less than once a month. Now is the time to be strict.
7. Declutter and sell—people can make extra cash to pay off their debt by selling unwanted Christmas presents and other household items.
8. Turn clearing debt into an obsession – with the right mindset paying off debt can be fun.
9. Spend less. Try cutting down on takeaways, going out or buying new clothes. Some experts recommend taking on the challenge of a ‘no spend year’, which means you can only buy the essentials.
10. Always ask for help: There’s lots of help out there, whether it’s speaking to professionals at Citizens Advice or joining a forum for inspiration and accountability.

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