SPENDING SPREE
I’m a mum-of-two in £20,000 of credit card debt after spending on clothes, drinks and takeaways – but I’m not ashamed
Megan said people have called her 'unhinged' and 'dangerous'
A MUM has racked up £20,000 in credit card debt after spending thousands on clothes, drinks and takeaways - but she's not ashamed.
Megan Archer-Fox started dipping into her overdraft as an 18-year-old fresher at university.
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She quickly twigged the "£200 interest-free" overdraft on her current account was actually £1,500.
The student splashed out on clothes, Wetherspoons pitchers and Nando's chicken.
Megan, from Birmingham, figured she could easily pay off the overdraft when she got a job.
But 14 years later, she has piled up more than £20,000 in credit card debt.
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The mum-of-two told how she put takeaways and fancy dinners on her credit card without hesitating.
She finally decided enough was enough after having kids - and now hopes to pay off her debts in two years.
Megan has launched a TikTok account, , bravely charting her money journey.
Writing in the , she said: " I don’t believe debt is anything to be ashamed about.
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"I've had some unpleasant comments - people telling me I'm 'irresponsible', 'lazy' and 'unhinged'.
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"One person even said I was 'dangerous'. Irresponsible, sure. But not anymore. This changes now."
Megan has made a spreadsheet charting all her bills and daily expenses.
She has also moved all her credit card debt onto 0% interest cards and is using the "snowball method" to pay them off.
The snowball method involves starting with the smallest balance or the highest interest rate before moving onto others.
Megan wants to be debt-free in two-and-a-half years at the latest so she can save money for her kids' future.
She wants to go on holiday or enjoy Christmas without worrying over the cost.
The determined mum said: "I can’t imagine going back to spending what I used to - and I never want to again."
How to shift your credit card debt quickly
By James Flanders, Consumer Reporter
UK Finance reports that we spend a whopping £2 billion a month using our credit cards.
While that little strip of plastic makes everyday spending easy peasy, it comes at a huge cost.
According to The Money Charity, the average credit card debt sits at £2,485 per household or £1,312 per adult.
And if you're stuck on a credit card with a high APR and only making the minimum repayments, you could be forking out hundreds of pounds extra in interest charges.
For example, if you owe £1,312 on your credit card and are charged 24.8% APR.
If you don't make any more transactions and pay £100 a month in repayments, you will pay off the card by September 2025 but at £207 in interest.
However, by hunting around for a better deal elsewhere and switching to a balance transfer credit card with a lengthy interest-free period, you can save yourself £162.
If the same person was accepted for a 28-month-long zero-interest credit card with a 3.4% balance transfer fee and made the same £100 repayments each month.
They would pay off the debt sooner, in July 2025, and only fork out £45 towards the 3.4% balance transfer fee.
Before taking out a new credit card or increasing the amount you borrow, it's vital to consider the consequences.
You should only borrow money if you can afford to pay it back.
It's always vital to ask yourself if you need to borrow before committing to a new credit card, personal loan or overdraft.
If you use a credit card, I'd recommend that you always pay off your balance in full at the end of each statement period.
Lenders have a responsibility to help customers who are in debt.
If you're in a debt crisis, your first point of call should be your lender.
They might help you out by offering you a reduced interest rate or a temporary payment holiday - so check in with your lender if you're struggling.
If you're struggling with debt there are plenty of services where you can get free and friendly advice:
- Money Helper - 0800 138 7777
- Citizens Advice - 0808 800 9060
- StepChange - 0800 138 1111
- National Debtline - 0808 808 4000
WAYS TO CLEAR DEBT
There are several methods that can help you clear debts.
But focus on paying off any debts linked to priority bills, such as your mortgage, rent or council tax first, as these have the worst consequences for non-payment.
Write down your monthly income and outgoings, including your minimum debt repayments.
If you’re struggling to cover your debts, contact your creditors, who are the people you owe money to.
They may agree to lower your monthly repayments.
AVALANCHE METHOD
In theory, this method will see you shell out the least amount of money for your debts.
Focus on paying off the debt with the highest rate payment first.
Once you’ve paid that off, focus on the next most expensive borrowing, and so on until it’s all paid off.
The avalanche method is best for your finances, says Sarah Coles, Hargreaves Lansdown senior personal finance analyst.
She previously told The Sun: “This way, you never waste a penny in needless interest, and instead you can focus it all on getting yourself out of debt.”
SNOWBALL METHOD
You'll essentially be doing the reverse to the avalanche method if you pick this technique.
Start paying off your smallest debts first, and work your way up to clearing the largest ones last.
This could be a good method to keep yourself motivated because you’ll see your debts ticked off one by one quicker.
However, you’ll ultimately be paying back more than you need to, Sarah says.
She explains: “It means wasting money on interest, because your smallest debts may not be attracting as high a rate of interest as your larger ones — so you’re prioritising cheap debts over expensive ones.”
50/30/20 RULE
Coming over from the States, this rule has gained popularity in recent years in the UK.
It sees you put 50 per cent of your monthly income towards covering your “needs”, which is basically your food, bills and living costs.
The next 30 per cent goes towards your “wants”, such as hobbies and shopping.
And the remaining 20 per cent is for your debts.
But it might not be the most realistic method to use during a cost-of-living crisis, according to Money.co.uk personal finance expert James Andrews.
He says: “Fitting all your essential spending into 50 per cent of your earnings is a stretch for many at the best of times.
"Add in soaring energy bills, mortgages, rents, council tax and even food prices on top, and anyone trying to live by the rule could find themselves simply unable to pull it off.”
CASH STUFFING
You may have seen this method crop up on social media — #cashstuffing clips have 747million views on TikTok alone.
The theory is that each month you leave enough cash in your account to pay off the direct debits you have for existing bills and minimum debt repayments.
Then withdraw money from your account and allocate to different envelopes.
Each envelope is earmarked for a certain thing, such as your groceries, petrol and clothes.
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You should then get an envelope for your outstanding debts.
And any money left over can be put into this debt envelope at the end of each month.
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