Megan Smith Evans, a 33-year-old shopaholic, shares how she managed to clear £13K of her debt by following five personal finance rules after accumulating £15,400 in debt during the pandemic.
Megan Smith Evans, 33, identifies herself as a shopaholic who spiraled into significant debt of £15,400 during the pandemic, primarily due to excessive spending on her puppy and takeaways. As a tattoo artist unable to work during COVID-19, her spending habits persisted, contributing to the debt accumulation. Among her major expenses were £1,000 for a Cocker Spaniel, monthly costs of £1,000 for training and food, and an additional £200 monthly on takeaways, alongside £300 on social outings, all charged to credit cards.
Faced with rising debt and the need to sustain her tattoo business, Megan took out a £10,000 loan. It wasn't until she considered using her credit card for essential purchases, like food, that she realized she needed to turn her financial situation around. By adopting a simple colour-coding budgeting method, she focused on regaining control of her finances and successfully cleared £13,000 of her debt within a year.
Megan's journey highlights the struggles many face with financial management, especially during challenging times such as the pandemic. Her experience serves as a reminder of the importance of budgeting and financial literacy, demonstrating that practical methods can help individuals regain financial stability and combat the impulses of consumerism.
