From Financial Crisis to Freedom: My 3-Step Plan to Debt-Free Living

Breaking Free from Financial Chaos

I hit rock bottom in early 2018, stuck in a financial quagmire of my own making. After quitting a stable job to pursue a new career path, I found myself in one of the world’s most expensive cities, earning significantly less than before. To make matters worse, I hadn’t budgeted properly and continued to live beyond my means, racking up £3,000 in credit card debt.

A Wake-Up Call

Fortunately, I received a small pay rise, but instead of using it to tackle my debt, I treated myself excessively for two months. It was a reckless approach, and I knew I needed to take control of my finances before things spiraled out of control. With £40,000 in student loans (thankfully, with low interest rates), I focused on tackling my credit card debt and a small student overdraft.

Taking Action

This month, I’ve taken three crucial steps towards financial responsibility:

Prioritizing Debts

I’ve committed to paying off at least £160 of my student overdraft, which will save me from hefty daily charges.

Refinancing My Credit Card

I’ve transferred my credit card balance to a new card with a long 0% interest period, allowing me to pay off my debt in manageable chunks without incurring excessive interest charges.

Boosting My Pension Contribution

I’ve maxed out my pension contribution to ensure my employer contributes the maximum amount, securing my retirement pot.

A Newfound Sense of Pride

By taking these steps, I’ve finally started to feel like a responsible adult. Next month, I plan to make significant progress on my credit card debt, with the goal of clearing it by the end of 2018. It’s time to break free from financial chaos and take control of my future.

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