I paid off £16k of debt in 10 months thanks to a 7-step plan, it even helped me save money along the way | The Sun

A WOMAN has revealed the seven-step plan she used to get herself out of £16,000 of debt.

Rebecca, from the US, revealed that it was all thanks to a book her uncle gave her.

In a TikTok video posted to her account @rebeccaj_4, she revealed she was in £16,665 ($20,000) of debt and managed to banish it in under a year while saving money too.

The 25-year-old said: "When I was 21 years old, my uncle gave me a book called The Total Money Makeover," by Dave Ramsey.

She explained that the book was all about how to pay off debt and find financial freedom, and she read it every single day.

After reading the book she realised how easy it was to be in control of her money so Rebecca started following the steps.

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With £16,665 of debt at the age of 21, the money-saving pro was determined to write it off.

The first step includes saving £1,000 in an emergency fund.

Next, Rebecca recommended 'snowballing your debt.'

She explained that debt snowballing was paying off your smallest debt first and largest debt last.

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In step three, the goal is to save up 3-6 months of your expenses.

Rebecca added: "So anything that you pay for for your house, utilities, things you want to spend money on, You are saving that month's worth."

The savvy woman added that keeping track of your budget was super important during this process.

"Budgeting is super important for this, we budget to the actual literal penny," she revealed.

"And once you start doing that, you really realize how much money you should have left over and it's just literally mind blowing."

Rebecca revealed budgeting doesn't mean you have to restrict youself either.

She continued: "You're giving yourself a budget.

"If you want to spend money, you're putting it in your budget, so that this is the amount that I have that I can spend money on."

Once you have cleared your debt, it's time to start thinking about saving money and investing it.

The plan asks you to invest 15% of your salary so that you can make money while doing no manual labour to get it.

Rebecca revealed: "I open off a Roth IRA, and I invest 15% of my income into that, and it grows money over the years, and I'm not touching it.

"So I should have well over like $2,000,000 when I retired."

Step five asks you to start saving for your children's college fund, but Rebecca and her husband are currently on step six, paying off your house.

"We are going to be paying off our house early, we already switched to a 15 year mortgage, which saved $80,00 in the life of the loan," she added.

The seventh and final step is to build wealth and give.

The savvy woman revealed the process hasn't been easy but it has helped her in the long run.

She said: "This whole process was extremely hard, especially being so young and wanting to spend money and not being able to go out and do things.

"But now I can do whatever I want.

"We both have paid off cars, all of our money is towards our bills, and then we save and we invest."

The video has since gone viral with over 900k views and 111k likes.

People quickly took to the comments section to share their thoughts and praise the money-saving method.

One wrote: "It works I got out of debt in 2 years. It just takes time and discipline."

Another commented: "How much do you and your husband make a year? That also is a huge part of all of this."

"Can you show us how to start a budget," penned a third.

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Meanwhile, a fourth added: "This sounds amazing if you don’t live paycheck to paycheck."

"That book was a god send to me, and has helped my life immensely," claimed a fifth.

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