Money blogger Skint Dad who ‘turned to debt to survive’ reveals how he paid off £43,000 in four years
Ricky Willis, 39, turned his life around and became debt free in just four years – here’s how you can do it too
BLOGGER Ricky Willis and his wife Naomi had to reach breaking point before they addressed the £43,000 worth of debt that they’d racked up.
It started when they were young. When one line of credit ran out, they opened another.
Each time the credit card had higher interest and repayments became difficult.
The couple owed up to £43,000 in credit card, loan, catalogue and payday loan debt, as well as council tax and water bills.
Then in 2008, Ricky, 39, who lives in Tunbridge Wells, Kent was made redundant from his machine operator job at a printing firm.
A year later Naomi, now 34, also lost her job working in insurance.
In one week the car, washing machine and fridge freezer all broke down and he said it seemed “obvious” to just get another credit card because all the others were maxed out.
He said: “Being in debt just became normal.
“We felt pressure as we realised we were getting trapped into a cycle of debt, but couldn't see a way out.”
“We had all the original debt, but when the bills hit our doormat the following month, it left us well and truly skint.
“We knew we’d have to pay it back, but didn’t really grasp how much the minimum cost would be.”
They had no money saved, lived in their overdrafts and all their wages were going on debt repayments.
“We decided to get a payday loan to bail ourselves out,” said Ricky.
I really hope the high-cost credit review from the Financial Conduct Authority will stop exploiting people who are more vulnerable when it comes to money
Ricky Willis
“While it gave us some breathing room, the huge interest meant we got stuck the month after and had to borrow more, and more, and more.
“We were living in a debt trap, robbing Peter to pay Paul, never having anything left after being paid.”
Eventually the couple reached breaking point.
Ricky said: “We realised we’d run out of all options, and had no food in the cupboard, it was the moment we knew we had to change the way we were living.”
“It was at that point we decided to take control of our lives and stop living a life of high interest debt.”
“It really wasn’t easy. We cut back on all our outgoings, apart from priority bills, we set up individual payment plans with all the creditors and started to look at ways we could increase our income so we could clear our debts off quicker.”
“We started trying to save, even if it was just £10 a month, so we’d have a little something to fall back on.
“We stopped spending money on random things, and instead looked to get stuff for free from Freecycle.”
Ricky's top tips on paying off your debts
HERE Ricky shares his tips on sorting out your finances.
- Check your budget to see what you can cut from your outgoings so you can pay debt off quicker. Also, see if you can up your income by checking you’re claiming all the benefits you’re entitled to, asking for a pay rise at work (if you don’t ask you don’t get), get a second job, or just find a better paying new role.
- Before using high interest credit like overdrafts, doorstep, rent-to-own and payday loans, see if you can sell some of your stuff, cancel non-priority direct debits and bills, or ask for a pay advance at work.
- Don’t bury your head in the sand - it won’t make the debt go away and it will end up costing you far more in the long run.
- Explain to your creditors if debt has got too much or if you’ve had a change in circumstances. Don’t just miss debt repayments but see if they can freeze interest or come up with another repayment plan to give you breathing space.
- Snowball your debt. Take your debt with the highest interest and put all your effort to clearing that as it is costing you the most. Once it’s at zero, take the money you were using and snowball it onto the next debt.
- Try to save something - even if it’s very little. You’ll be surprised how quickly it adds up. Getting into the habit of putting even a few quid away each week will make it easier to save when you do find yourself having more spare money. It’ll also give you a small emergency fund if you ever need access to cash in the future.
- If you’re struggling, don’t do it in silence. Reach out for free debt help from organisations like StepChange, National Debtline, PayPlan or Citizens Advice.
It took them four years to become debt-free. In 2013, Ricky set up his blog – – to help inspire others to get back on track financially.
Ricky added: "It takes hard work, determination and a lot of sacrifice.
"But it’s worth it, just for the feeling of freedom when your money becomes your money, and you can start planning a life being debt free."
Every year, millions of families turn to high cost credit.
Tomorrow, the city watchdog, the financial conduct authority, is set to release a report into the sector.
The Sun is calling on the FCA to extend a cap it already applied to payday loans across the industry. A move which could save customers £2million a year in interest repayments and could help people like Ricky.
MORE ON DEBT
Speaking about The Sun's campaign Ricky said: "High-cost credit was what pushed us over the edge with debt.
"Payday loans spiralled our debt out of control and overdrafts kept us living in the red continuously.
"We were trapped because we had to pay back so much in interest each month. We had to turn to debt to survive and had no other choice.
"Even though the new debt was clearly unaffordable to us, the lenders continued to let us borrow so I really hope the high-cost credit review from the Financial Conduct Authority will stop exploiting people who are more vulnerable when it comes to money."
In January, we revealed how a mum of two cleared £4,000 debt and then saved £10,000 in one year.
Another mum, Tori Gabriel, also revealed her secret to clearing £11,000 worth of debt too.
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