In today’s blog post Katie Agbebi shares her inspiring story of how her family was able to pay off £27,000 debt in 31 months. In addition to sharing her story, she offers practical advice and lessons for anyone currently in debt.
Debt Awareness Week 2022 – Inspiring Story
It’s Debt Awareness week in the UK, a time to open up the conversation of debt and remove the taboo around this subject.
It’s a subject close to my heart as I was once in over £36,000 debt, nobody knew and it was a lonely and isolating experience. I share how I paid it all off in my eBook, How I paid off £36,000 debt.
Every day this week I’ll be bringing you inspiring stories of amazing people and how they were able to overcome debt. I hope if you are reading this and in debt, their stories will encourage you to face your debt head-on, take action and pay it all off.
First up this week we have Katie Agbebi. I came across Katies Instagram profile a few years ago and I’ve followed her ever since. What drew me in is how transparent and relatable Katie is with documenting her financial journey online. She keeps it real and encourages mums to win with money.
Katie is a recent mum of 4 who paid off £27,000 debt in 31 months, read how she did it below.
How we paid off £27,000 debt in under 3 years
Tell us a little bit about yourself.
I’m Katie, a 35-year-old office worker from Liverpool. I’m married with 4 kids. My husband and I have been together since I was 17. My husband and I paid off £27,000 debt in 31 months.
How did you get into debt?
I’ve always had some kind of debt since I was old enough to get a credit card. But buying our first home, having our second child and getting married within the space of one year, tripled what we owed. I looked at debt as a normal part of adulthood and never questioned taking on more as long as we could afford the monthly repayments.
What motivated you to embark on a debt-free journey?
I added up our total debt after trying to plan a family holiday. When I looked at the total minimum payments, it was exactly the same amount as my part-time wage from my office job. I couldn’t believe it.
How did you get out of debt?
We followed the debt snowball lesson for clearing the debts. I found this super motivating as within a couple of months we had cleared a couple of debts already.
Share 3 lessons you learnt on/from your debt-free journey?
- There is no ‘good time’ to start. Don’t wait for something to happen, just make a plan and start now.
- Everyone makes mistakes. You will make plenty of mistakes along the way, but remember it’s part of the process! This is a lifestyle change and will require you to keep starting over every month.
- Debt is paying for past decisions. When you make debt payments every month, you are paying for decisions you have made in the past. It sounds obvious, but keep in mind once you are debt-free, all of your money will be going towards your future and the life you are trying to create.
What resources and tools helped you on your debt-free journey?
‘The total money makeover’ – book by Dave Ramsey, gave me a great starting point to clear the debt. Also joining the #debtfreecommunities on Instagram helped keep me inspired and motivated and it was there I was able to ‘find my tribe’.
What advice would you give to anyone wanting to pay off their debt?
Get clear on your goals and your life vision first. When you do your budget, be sure it reflects what you are trying to achieve. Money is just a tool, so paying off debt to just have more money will get boring very quickly. Have goals, sinking funds and money allocated to support a fun and fulfilling life.
Watch Katie’s debt story on her YouTube channel:
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