A COUPLE from the US managed to pay off £105,000 of debt in just 18 months by selling their household items on Facebook Marketplace and quitting dining out.
Justin Brown-Woods, 33, and his wife, Hailey Brown-Woods, 32, had accumulated £177,000 of debt from student loans, credit cards, and “lifestyle inflation.”
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This debt came after Justin had received a £475,000 payment in 2015 after his grandfather filed an unlawful death suit.
They had spent the money on things like new cars, a house, and vacations.
Justin said they were always looking for the next best thing, from the newest iPhone to a brand new car.
“In three and a half years, we found ourselves in £177,000 of debt,” he said.
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The turning point for the couple came in October 2019 when they were working as teachers.
Hailey came home with some £5.50 pumpkin muffins from Costco, which they couldn’t afford.
“We didn’t have £5.50 in our bank account for Hailey to spend outside of our grocery shop,” Justin said.
“That was when we realised we needed to act on our debt.”
They started by trimming their expenses.
The couple’s debt journey coincided with the pandemic, which helped them save around £550 a month by not eating out or ordering takeaways.
To increase their income, Justin took on a second job at a bar, earning an extra £2,000 a month.
They also made £8,000 by selling household items on Facebook Marketplace, including sports equipment, kitchen appliances, and baby items.
“I tell everyone, if you have things in your home that don’t matter to you, you should sell them,” Justin said.
In 2020, they sold their Toyota 4Runner for £26,000 and bought a used Suburban for £6,500.
We really understand the effects that debt stress and tension have on our bodies
Justin Brown-Woods
By June 2021, the couple had paid off £105,000 of debt. They now have around £71,000 of student debt left to pay.
“Since paying off the majority of our debt, the tension from debt is no longer there,” Justin explained.
“We really understand the effects that debt stress and tension have on our bodies.
“The stress and tensions we were feeling as a young, married couple were intense, and now we don’t have that anymore.”
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Since then, the couple has quit their jobs as teachers to become financial counsellors, helping others get out of debt.
They still live a frugal lifestyle and use a value-based budget, spending money on things they value like self-care while cutting back on things they don’t, like alcohol.
“We are both accredited financial counsellors,” Justin said.
“People don’t realise that a lot of the stress they are feeling will be financial-based.”
How to cut the cost of your debt
IF you’re in large amounts of debt it can be really worrying. Here are some tips from Citizens Advice on how you can take action.
Check your bank balance on a regular basis – knowing your spending patterns is the first step to managing your money
Work out your budget – by writing down your income and taking away your essential bills such as food and transport
If you have money left over, plan in advance what else you’ll spend or save. If you don’t, look at ways to cut your costs
Pay off more than the minimum – If you’ve got credit card debts aim to pay off more than the minimum amount on your credit card each month to bring down your bill quicker
Pay your most expensive credit card sooner – If you have more than one credit card and can’t pay them off in full each month, prioritise the most expensive card (the one with the highest interest rate)
Prioritise your debts – If you’ve got several debts and you can’t afford to pay them all it’s important to prioritise them
Your rent, mortgage, council tax and energy bills should be paid first because the consequences can be more serious if you don’t pay
Get advice – If you’re struggling to pay your debts month after month it’s important you get advice as soon as possible, before they build up even further
Groups like Citizens Advice and National Debtline can help you prioritise and negotiate with your creditors to offer you more affordable repayment plans.
