I paid off £150k of debt in just two years by making just two small tweaks – if I can do it anyone can
A WOMAN who paid off £150,000 worth of debt in less than two years has revealed exactly how she did it. Aja Dang, who shared her debt journey on YouTube, was drowning in student loans, credit card debt and car loans and in December 2017 began taking steps towards financial freedom. And by November 2019 […]
A WOMAN who paid off £150,000 worth of debt in less than two years has revealed exactly how she did it.
Aja Dang, who shared her debt journey on YouTube, was drowning in student loans, credit card debt and car loans and in December 2017 began taking steps towards financial freedom.
And by November 2019 she had made the final payment on her student loans as well as clearing the remainder of her debt.
Speaking in a YouTube clip she says: “My game changer didn’t even seem like a possibility so I never wrote it down as a goal, it was always just a fantasy.
“If I was able to pay off all of my debt by myself that means you can too, no excuses.”
Aja’s achievement might seem like a pipe dream to many of us, however, she says it took just two changes to her life to be able to do so.
She explains: “The CliffNotes version of the last two years of my life is to budget and make more money.
“Know where your money is going so you can see where you can cut back and make more responsible decisions.
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“More importantly for me – make more money. I would not have been able to pay off $200,000 of debt in less than two years if I hadn’t tripled my income.”
Aja, who acknowledges that she is not an expert on finances, gained a huge boost to her income thanks to her YouTube channel, but she says anyone can add to their earnings.
She adds: “Everyone’s jobs are different but from my experience if you tell people you work with what your goal is, most of the time they’ll do everything they can to help you achieve your goal.
“Whether that’s more hours, more money or helping you get a whole new job, trust that people want to see you succeed.”
AJA’S TIPS FOR BUDGETING
Go through your statements
Bank statements, utility statements, investment statements and go through outgoings and incomings.
I went through my bank statements for the past three months which is incredibly scary because it forces you to see where your money is going.
I worked out the average spend for each of those months and then used that to budget for the future.
Work out incomings and outgoings
I split mine up into income and then monthly responsibilities including rent, student loans, car insurance etc.
The final section was ‘other’ because those are things you just spend money on every single day, i.e. groceries, food, transport etc.
This will help you workout how much you have to spend which is your budget.
Write down what you’re spending
Either using an app such as You Need a Budget, or simply jotting it in a notebook, keep a record of every penny you spend.
This means that you will always be aware of what you have left in your budget.
How to get debt help for free
THERE are lots of groups who can help you with your problem debts.
- Citizens Advice – 0808 800 9060
- StepChange – 0800 138 1111
- National Debtline – 0808 808 4000
- Debt Advice Foundation – 0800 043 4050
You can also find information about Debt Management Plans (DMP) and Individual Voluntary Arrangements (IVA) on the Money Advice Service website and on the Government’s Gov.uk site.
Speak to one of these organisations – don’t be tempted to use a claims managment firm that will say it can write-off lots of your debts in return for a large up-front fee.