We paid off £118k debt in two years using the ‘7 baby steps’ method – it even helped us save enough for our first house
ARE you fed up of being in debt and have no idea how to get out of the red?
Well, listen up...because a savvy couple named Brittany and Anthony Xavier have revealed how they paid off £119k ($150,000) in debt in just two and a half years after learning top tips on how to budget after taking a financial course.
In the clip posted to TikTok (@brittany.xavier), Anthony explains: "When we got married, we had about £95,6k ($120,000) in student loan debt and about £24k ($30,000) in credit card debt."
So, the couple, who felt their "spending was a little out of control," decided to take one of Dave Ramsey's financial courses.
"We didn't really come from money, and we weren't really taught how to manage our money, so we kind of carried that into our marriage," Anthony says.
Brittany chimes in: "'We both had jobs starting at 16, but I feel like every time I got a paycheck I would just spend it that weekend."
READ MORE ON MONEY
Determined to improve their spending habits, they followed Ramsey's '7 Baby Steps' technique, and started with starting with saving £7.9k ($1,000) for their emergency fund.
Once this was achieved, they then focused on paying off their debts, which included student loan and credit cards debts, by following the 'snowball method.'
This is a simple process that involves paying off the smallest of the loans as fast as possible.
"What you want to do is give yourself motivation when you start paying things off to keep going," Anthony explains.
"We were really strict. We didn't go out to eat. We were on a clothing budget. We were on a gas budget."
Brittany adds: "All of our money each month was accounted for. So our budget totalled zero at the end. Every dollar had a name before we even got our paycheck.
"So that was really helpful because it helped us not overspend.
"We said no to our friends going out. We truly sacrificed during that time because we knew that it was going to get us into the direction we wanted to go."
In a bid to get out of the red, they also looked for other streams of income.
So while Anthony carried out some additional freelance SEO work alongside his full-time job at a food ingredients company, Brittany sold paper flowers on Etsy while also working at a CPA firm.
And remarkably, with two and a half years, the couple were debt-free.
Anthony concludes: "We are still debt-free, except for our mortgage, which has allowed us to be able to give our 10 per cent to charities.
"It laid the foundation to be able to purchase our first home and now our second home."
Ramsey's '7 baby steps' to getting out of the red
- Save $1,000 for your starter emergency fund
- Follow 'snowball method' to pay off all debt, excluding your mortgage
- Save between 3–6 months of expenses in an emergency fund
- Invest 15% of your household income in retirement
- Save for your children’s uni fees
- Pay off your home early
- Build wealth and give
Source: Ramsey Solutions
The post has since gone viral, garnering thousands of views and hundreds of comments from very grateful social media users.
"Me and my husband are doing the Ramsey financial freedom course as well! We are on baby step 1! Hope we can be debt free soon!" wrote one.
A second penned: "Love this! Thank you for being an influencer that talks about finances and how you have to budget no matter how much you make."
READ MORE SUN STORIES
A third commented: "This is very helpful! Dave has helped us too! Also, listening to his podcast can be motivating."
Meanwhile, a fourth noted: "Such important information!"