A TikToker has revealed how she paid off nearly €19,000 worth of debt in just a year-and-a-half using an easy trick.
Money guru Sarah (@youneedabudget) was $20,000 (€18,948.80) in debt but managed to pay it back in just 18 months. Sarah said she made a list of her debts and put any extra income towards paying off one in particular while making minimum payments on the rest each month.
She said on TikTok: "I paid off $20,000 worth of debt in 18 months using a very specific strategy. So today I’m going to show you how you can create your own strategy using the same framework, regardless of how much debt you have.
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"Start by making a list of all your debts…and from this list, you’re going to choose one debt to focus on and put extra money towards. Choose either the debt with the lowest outstanding balance or the one with the highest interest rate.
"Once you’ve decided which debt to focus on and pay off first, put the other debts in your budget where you’ll only pay the minimum payment on them until the first debt is paid off. And every time you get paid, you’ll make sure all of your necessities are covered, and if there’s any money left over, you’re going to take it and assign it to the debt that you’re focusing on."
The video has since gone viral gaining over 6,400 likes and more than 230,000 views. One person said: "Like this idea." Another person added: "This is the exact way I paid off over $38k in less then 3 years. Gave up most everything and now I am debt free and can finally save and do things."
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