I paid off £8.5k of credit card debt in seven major steps. These are my best tips
A BUDGETING expert has told how she paid off £8,500 in credit card debt.
Aisha Carter shared her money-saving formula via a video on her TikTok channel, @aishaxcarter.
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In the video, Aisha has broken down her method for combating debt into seven key words steps.
Her first tip is to do an “audit analysis.”
She explained that this means making a list of everything you spend money on so you can see exactly where your money is going.
Aisha said that when she did this, it helped her understand what to “leave out.”
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The money saver's second tip is to adopt a “reduced budget.”
Aisha explained that she used Excel to create a spreadsheet showing her expected budget, how much things would cost, the actual budget, and how much she expected to have in her account after the payment was made.
She tracked her expenses this way every month and aimed to have more money in her account at the end of each month than projected.
Aisha's third tip is to “increase your cash flow somehow.”
The TikToker chose to sell her car to do this, but said that if possible, you could also try to get a better paying job.
Step four is to give yourself a timeline of how long you want to spend paying off the debt.
She said, “Be realistic with yourself and be open-minded.”
From Aisha next one step tip is to limit the use of your credit card.
She said, “I stopped getting my hair done, I stopped getting my eyelashes done, I stopped getting my nails done.”
The TikToker stated that she started using the credit card only for essentials, such as grocery shopping.
Aisha's next tip is to mentally prepare yourself for a money drought and not being able to live the kind of lifestyle you're used to.
Finally, Aisha recommended staying consistent until you pay off all debts.
She said, “Just set your goal and stick to it.”
Aisha's TikTok has clearly made a big impression, as it has racked up over 30,000 views.
TikTok users rushed to the comments section of the video to share their thoughts on Aisha's budgeting plan.
One user said: “This video was really helpful, thank you!”
Another user added: “This is really good information.”
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