Mum explains how she paid off £53,000 in debt by only spending money on four items
Amber has decided to go a “no spending” year to clean up her finances. A “spend-free” year is when you don’t spend money on luxuries like clothes or going out, but you still pay your bills.
A mum has told how she cleared £53,000 of debt with a ‘no-spend’ year.
Amber, a mom of three who lives in Ontario, Canada, decided to try the strict spending rule to get her finances in order.
A “spend-free” year is when you don’t spend money on luxuries like clothes or going out.
The only money you part with is essentials, like food, bills, and commuting.
“It’s really helped our family get out of debt,” Amber shared.
“At first, when we launched the no-spend challenge, we were really in the middle of the year.
“I decided I had had enough of us being in debt. We were almost $70,000 (£53,000) in debt.
“We were living paycheck to paycheck and most of those paychecks went to credit cards and loans we had, just to pay the interest.”
As part of the no-spend challenge, the family stopped eating out, went to the movies, and only paid their rent, bills, food, and insurance.
If you feel that a whole year is too long, you can always take a month “without expenses” before committing to a longer stay.
Have you successfully cleared £1000 of debt and want to share your story? Let us know: [email protected]
Amber also sold unwanted goods around her house to help pay off debt faster.
That included selling her sofa, kitchen tables and TV — and even her wedding and engagement ring.
Amber said: “Anything that I didn’t consider to be something that I really liked or completely needed or didn’t use, I just sold it.
“Then I ended up making quite a bit of money just selling things that were lying around the house.
“I used that money to help pay off the loans.”
How to Get Free Debt Help
If you’re struggling with debt like Amber, the first thing to do is talk about it. The sooner you start tackling your money problems head-on, the sooner you’ll be back in the clear.
There are many ways to get out of debt, so it’s important to find a solution that’s right for you based on what you can afford.
As a general rule, you should start by reviewing your finances and making an exact list of what you owe, to whom, and how much you owe each month.
Once you have your list it should then be much clearer to see the different debts you have.
There are certain debts that you should always prioritize, such as your rent or your mortgage.
For free debt advice, contact one of these free organizations:
Always be wary of companies that try to charge you for debt help, as you can get advice from the companies above without paying a penny.