MARTIN Lewis appeared to be in tears after a viewer revealed his tips helped her become debt-free on his ITV show last night.
Debbie, from Plymouth, rang in to thank the financial guru after she went from being caught up in a cycle of debt to becoming debt-free by following his advice.
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Her financial situation was so bad that her bank suggested to her last year to declare herself as bankrupt after struggling to pay off her credit card loans and overdrafts.
Although she didn’t say how much debt she was in, she said she was at the “lowest point of my life” while appearing on Martin’s ITV show.
She then watched The Martin Lewis Money Show in January 2021, and followed all of the consumer expert’s guidance on how to tackle debt.
Debbie said she “never gave up hope” that she could get on top of her finances, and started by applying for a 0% balance transfer card.
These types of money transfer credit cards allow you to move over debts you already owe onto a new card, and you won’t pay interest on this amount for a set period.
She said getting this card was “the turning point of my life”, and transferred her two debts with the highest interest rates – which were two credit cards – on there.
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In nine months, she managed to pay off all these two debts, and then focussed on getting out of her overdraft – which Martin has previously warned are a “danger debt”.
Martin earlier this month said its the “wrong place to carry your debt, because the interest rate you’ll pay on your overdraft is typically much higher than what you will pay your credit cards.
Now she’s completely debt-free – and has even been able to book a holiday in Cyprus to see her family with the cash she’s saved.
“Thank you so much because if I didn’t watch you all the time, I would not have had that faith to just try again once more.”
Martin looked close to tears after hearing Debbie’s story, wafting his hands close to his face and saying she was “making me go”.
He told viewers: “Please listen – you can get out of this with time and patience, and if you’re really struggling, get one-on-one debt help.”
How to tackle your debt
If you’re struggling with debt like Debbie was, then there are ways to get your head around your finances.
Here’s four tips to getting debt-free just like Debbie did:
Understand what you owe
It’s easy to stick your head in the sand over what you owe.
But you need to get a handle on how much you are in debt and make sure you calculate a budget based on your outgoings.
Any extra money can be put towards paying off debts with the highest interest rates after you’ve made all the minimum repayments.
Talk to your lenders
One of the first steps you should take is to talk to your lenders.
You need to be upfront about how you are struggling to make your repayments.
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They might agree to putting you on a more affordable repayment plan.
Get free debt help
If you’re losing hope in making a dent on your debt pile, it could be time to get some free debt advice.
There are a number of charities and organisations who will give you help for free.
Pay off more than the minimum
You should try and pay off more than the minimum repayment amount each month if you owe more than one debt.
It will help you pay off your debt quicker, but you could also save up to thousands of pounds in pricey interest fees.
The consumer guru has also explained what you need to do now before the energy price cap is hiked next week.
He also explains how Martin Lewis explains how workers are missing out on FREE cash support.
Plus, he urges workers to check tax codes after one reader got a £5,000 refund.
Martin Lewis tells households what to do about energy bills before next price cap announcement
