Debt free: Saver explains how they paid off £16,000 in debt in two years
Debt can arise in various areas of life, and sadly finances have frequently been made more challenging as a result of the lockdown measures and the recent crisis. However, as much as debt can be tricky to confront, many people are using this time to reassess their finances and attempt to pay off bills.
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Sometimes this can appear an insurmountable mountain to climb, but there is potentially a detailed method Britons can use to clear their debts.
One person in a similar situation revealed how they were able to become debt free in just over two years.
The saver had £16,000 worth of debt spread over nine credit cards, and was unsure how to clear this amount.
But by following a simple method, they were able to achieve their goals, and they took to the Reddit website to explain how.
They wrote: “Pay off that credit card debt, and do it now – today I paid off the last of it!
“I wanted to point out how important for me the ‘feeling’ of success was during this two year process.
“It was absolutely due to the snowball method, and with every balance payoff, I got a ‘high’ driving me to keep going as I took that extra money to tackle the next balance.”
The Snowball Method the user spoke of is often described as the fastest way to pay off debts.
It focuses on paying off the smallest balances first, before moving on to larger ones.
It is therefore known as snowballing, as it encourages savers to build momentum over time when paying off debts.
Snowballing is also designed to give debt payers a psychological boost each time they clear a debt.
The method, popularised by finance expert Dave Ramsey, repeats in a cycle until all debt is repaid.
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And the Reddit user encouraged others by explaining their repayments further.
They added: “I kept my focus on finances and frugalness. During this process I also documented everything, including success along the way.
“If you’re newer to taking control of your finances, want to pay off debt, and think you’ll require a physiological boost to keep going, I definitely recommend it.”
Another Reddit user also stated the snowball method allowed them to pay off significant debts.
They said: “The Snowball Method is really good at making you feel like you’re getting somewhere.
“It is really good at helping you feel like you are making a dent, even if it is slower, and less of a dent, it is far more tangible, and therefore more likely to keep them going towards paying off their debt.”
The Money Advice Service has offered tips on how Britons can look to pay off credit card debt.
During the coronavirus crisis, some customers may be able to get a three month payment freeze on credit card payments.
However, for those looking to tackle their balance, the service advises moving to a zero percent balance transfer card.
This allows savers to pay off debt with no interest being charged, meaning all payments go towards reducing the size of original debt.
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