A man shares his highly effective strategy for getting out of debt quickly.
Sammie Ellard-King, 34, managed to pay off a staggering £24,000 in just 18 months using a simple method.
When Sammie was 18, he got his first overdraft and quickly found himself in money troubles. Despite having a good job and starting his own business, he accumulated more debt through loans and spending.
Most of Sammie’s debt came from credit cards and high-interest payday loans. This not only affected his finances but also his credit score.
Sammie decided to take control of his debt and became obsessed with clearing it. He discovered the highly effective snowball method, which involves ordering debts from largest to smallest and focusing on paying off the largest debt first.
By transferring his £7,000 credit card debt to an interest-free card and making minimum payments on other debts, Sammie was able to pay off all his debt in just 18 months.
Since then, Sammie has launched his own financial website to help others learn about money.
Earn cashback
Sammie recommends using cashback apps and websites to earn money while shopping. Cashback websites like TopCashBack and Quidco offer free money back when you shop. Just make sure to only use them for necessary purchases and avoid accumulating more debt.
Switch bank accounts for cashback
Sammie suggests taking advantage of current account switching services to earn up to £200 in cashback. First Direct currently offers the best switch offer at £175.
Ask for a pay rise
Sammie encourages individuals to ask for a pay rise, as there is a 66% chance of success. Prepare for the meeting by researching what other companies are paying for your role and showcasing your accomplishments.
Start a side hustle
Sammie found that having side hustles made a significant difference in his journey to financial freedom. Consider earning extra income through referral links, online surveys, blogging, podcasting, tutoring, or freelance work.
Set up a savings pot that earns interest
After paying off debt, Sammie recommends setting up a savings pot that earns interest. Online banking apps like Monzo and Chase allow you to set up a savings pot and even round up spare change for additional savings.
Remember, it's important to prioritize paying off debt before focusing on saving.
By following these tips, you can take control of your finances and clear your debt.
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