The Vault with Financielle - "I turned 40, I'm £17k in debt, and I'm done using credit for good” | The Vault Episode 131

Episode Date: September 24, 2026

You asked for updates, and we've got one for you! Betty sent us a voicenote after her dilemma (ep106) about putting all her work expenses on a credit card 🎙️This week, we're diving into these money dilemmas:💸 "No More Student Loan, £380 Better Off a Month — What Do I Do?"💸 "I Turned 40, I'm £17k in Debt, and I'm Done Using Credit for Good"Got a money win worth celebrating? Or a dilemma that's been living rent-free in your head? Share it in the Financielle app community or email [[e-mail]] 💌You don't have to figure this out alone. Head to financielle.com for guides on debt, budgeting and money stories 💖💸Connect with our Partner🫶 Protect yourself and loved ones with our friends at Lifesearch**The above is a tracked link, which tells our partner we sent you and may in future result in a payment or benefit to our site.

Do you wish you could just hit skip on the worst parts of your life? You know, the same way you can skip an ad? I get it. I'm Siaiaa and I live in Ice Cove. I've made some questionable decisions that didn't end up the way I planned. And today, I'm still figuring it out. Somehow things usually get worse before they get better. Apparently, that's how I roll.

So bundle up and come along for the bumpy ride. Stream a new episode of North of North Tuesdays on CBC Gem. Hello, mid-sized business. We see your big ambitions, but how do you achieve the wins you want when your technology is holding you back? SAP Grow is built to grow with your business, no matter its size, with AI embedded at its core, working across every system, all ready to go from day one so you can hit the ground running. Bring it with SAP Grow. AI Cloud, ERP for any size business. Welcome to the vault with Finan Shell.

This is a safe space where we talk all things, life and money and no topics are off limits. Good morning. Good morning. Hi, Lydia. Morning. So I'm hearing up Lydia because she's got a surprise for us today. So we say it all the time, you know, if you have a dilemma that you want to send into the vault, do email the vault at finchal.com, DM us, drop it in the community.

And we've got a lovely amount that we've, we work through. Sometimes it's similar because people have similar issues. And I love that someone's dilemma inspires someone to messaging. Sometimes they're weird and wonderful. So please, we love hearing from you guys. but we also like updates and especially if we've helped you or not helped you and we really wanted to reconnect with the community and make sure like something that we said four or five six months ago helped you and was relevant and dilemma has never stopped

because one thing turns into another turns into another and Lydia um has got a gorgeous voice note from us haven't you you sent it to me from betty from um it was episode 106 I know we don't we don't list the number do it but yeah we do and we took the end of the And YouTube. And Spotify, we do. So it's episode number 106. If you want to listen to the full one. But essentially, Holly, what was Betty's high-level dilemma?

It was like SOS work expenses. So Betty felt like her company's procedure around expenses. She worked in a sales role, felt that she didn't have a company credit card. She had to fund these expenses herself. Kind of got her budget arm muddled up. And I think the temptation of having some sort of, company credit card and inverted commas that she owned that was personally hers, temptation kind of set in, she even acknowledged on the last dilemma that like she ended up

putting coffees on and like lunches, not relating to work. So started to accumulate some debt based on her own spending and not monitoring it properly and just leaning on that credit. But also that the company expenses were making a bit of a mess of a budget and it was hard to keep control of. So it was around that. And sometimes like when you get paid expenses, it goes into your bank account and you're just like, hmm, You forget it. You know, I rarely get expenses in my other line of work a couple of times when I'm filming away. I honestly have expenses that should be claiming from BBC, but you pay for it and then you forget and you crack on and you move on.

Because I don't have a credit card. I've used my own money for it. And it just slashes around with everything else. And so, yeah, I can imagine that I know why that's built up. Sometimes it's because you've put your own stuff on it. And sometimes it's because when they've given you the money back, you've not paid it off the credit card. Well, Betty's voice note it does an update. So let's have a listen.

So basically, I actually got a promotion a couple of months ago and I am now heading up like a department within our business, which is great. I've been working for years towards something like this. And I got a £10,000 pay rise as well, which again is great. However, my credit card's now actually sitting at about £7,000. I don't know what it was when I initially emailed you guys, but I don't know. don't think it was as much as that. So the debt's still increasing. It is on a 0% that's up next May, I think it is. Regardless of all of that, I am still struggling to like manage my money. So I redid my budget and I am now paying £650 a month off my credit card. It's then leaving me with

little to go into my savings, little to spend every month. I'm really struggling to like find the balance because life is so expensive and what is tricky now with the role that I've got is that in turn has created more of an expenses burden it's now my responsibility to head up teams meetings and book because we're all out on the field and then booking like meeting rooms and paying for lunches and then waiting to expense that back so I've tried to allocate myself more money a month but then also, you know, I've got two young children and it's just really tricky and I don't know what to do and when I bring it up, the excuse my MD always gives is like, no, the big company say no to it, which I just find so hard to believe. I do feel I've pushed it as much as I can

and it's just not got me anywhere. I've gotten to the point where I think I'm just praying for a lottery win, which is not, you know, ideal. The one thing I have done, which I hope that you'll be proud of me for is my salary has gone up to 60,000 pounds, which is obviously a fantastic salary. I now have upped my pension contributions to 10%. So that's one good thing, I suppose. But yeah, I'm really struggling. It's on my mind a lot, this credit card debt, which I've never said out loud, I don't think. And there's no money going into my savings. I mean, 60,000 pounds a year should really be feeling like I've made it a bit. I feel on paper really proud of my but when it comes to looking at my money and the actual figures,

I just feel so disheartened. Any advice, it would be gratefully received. However, I do just think I'm going to have to just stick up, paying it off in the chunks that I'm doing. I don't know. Yeah, anyway, thank you. We are proud of you first of all. Oh, we're so proud.

It's a good job she didn't come in person because we hug it with the huggers really, so she'd get a lot of hugs. There'd be nothing done. Just be chatting about work. Firstly, let's look at the positive. So 10,000 pound increase, promotion that you've been working towards. Chugging 650 quid a month is not to be sniffed out. No.

10% pension contributions. Like, on paper, like you say, you are smashing it. Like even including the debt contributions like that. Sorry, the debt pay off, debt repayments, you are absolutely smashing it. So you need to give yourself a little bit of grace. You're so right. she's done so, so well. And again, like the 10% pension contribution is so ambitious.

And I don't know where you were at with your pension or whether you feel like you need to catch up. And typically, you know, we say stick with regular employer contribution amounts and employer contribution amounts until you clear debt and stuff. But on that salary, if you think we can work it out then, and you want a really good track to pay this off. I was right to say the end is insight on this. So I don't want you to be like, feel bad about increasing those pension contributions

because time in the market, like you're probably going to be better off in the long run. It's a short, it's a short-term thing. So, like, again, super proud and you do you on your pensions. It's a, what I would say is sometimes, like, we put too much over there and it leaves you with less when you've got to save and pay off debt. And ordinarily, you'll know better we say to people, cut that credit card up, get it out of your life.

And I know you can't because unfortunately you're going to have to use it for work. Now, there may be an element here, by the way, where you start afresh, you cut, I never tell people to take out debt, by the way, so just bow with me. But I know that you need a credit card for work. Get a 0% purchase one. Because a 0% unless this is not percent on the balance, I have a little look on the 0% but one's running out and you always want to be in a position where you pay it off in full.

And sometimes, and I clean break, might be what you need. So it might be brand new card only for work expenses. And treat this as your personal debt, which it is now, obviously, and get it done. And you're on a really good plan. 650 month is a lot. I don't think, you know, it sounds like you're paying it off on your own. I don't think many more people could pay off that much. When I worked out how many months she'd got left to pay it

and how much she was paying off and on the balance and stuff, I think she just about makes it. So, like, she'll still be in that 0% period. Yeah, and if she's not, the balance will be lower. Yeah, yeah. Obviously, that's if you can keep paying $6.50, if that changes. If life gets in the way, if you want to treat yourself something, that's what happens and it, like pushes further out, doesn't it?

So I think she is doing it. amazing better. You're doing doing really, really good job. And you're in this phase where your financial poor. Yes. Because you earn 60 grand now, which is an amazing salary and you should be so proud of yourself. But you're like, why don't have anything? Yeah, you've mentioned the kids. I thought I'd have a nice car or I thought I'd have a nice handbag or I thought I'd be able to get my nails run. I thought I could, you know, go for coffees more and I can. And you are diverting 650 a month to just clear up something that was a previous chapter. And so if you can, it doesn't, for me,

it shouldn't matter that you're having to spend more on credit card because you have to be disciplined every time that expenses payment comes through from work, it goes straight to the credit card. And my husband had to do that, actually. He had a credit card for work because he used to have to book flights on it and book hotels.

And it was literally, like the minute the expenses came in, it went straight on that card. I never even, never saw it. It didn't touch the family, but came into the house and it went straight out. It never went in the budget because it's not our money. And we do that as well. Neil still has to pay expenses out.

And the minute that we get paid, the expenses come in in the payday. I don't, when we're doing our budget together, he never reads that number out, what our total income is in our bank account. It goes, let me do my expenses first,

takes those out and go, okay, right, our income for this month is. So I did a bit of research on this and to give you a tiny bit more context, that was an edited down voice note because we had a love, was it four minutes plus Lydia?

Yeah, I think, yeah. She had a lot. We had a great chap. But the company that she works for has been bought by a much bigger company. So whenever she's been asking, you know, and I think our advice on the previous pod was, you're probably paying some unrealistic expenses that an individual shouldn't have to pay up front. Like Laura and I haven't worked in this kind of job before where you're on the field and it's like a sales role. It felt like, and even more so now, big expenses coming out that are things like meeting rooms.

That feels like a business expense, not a personal one, which is really a. interesting debate. Like, it's not her getting lunches on the road or her fuel. It's booking a team facilitating the event. It's a work expense as in like a company expense that they need to facilitate a meeting for a number of team members. That's not a personal expense to her. So that's fascinating, first of all. And I couldn't quite quite understand why her MD kind of kept saying compute says no. So I went and did some research. I asked a good friend that's an FD, a really big business. CFO. Sorry, CFO. Sorry, FDs are fine as well. Yes. Yes. But no, that's not her job title.

A very competent and successful CFO. Why? I kind of sent a voice note. I was like, can you just explain to me? Because this feels like unreasonable and not very fair. Why would a company say no to giving someone a company credit card when they're working in a sales role on the road? And she was like, look, people get really lazy when they get a company credit card. When it's someone's personal expenses, they submit all the receipts.

Everything's like, buy the book. Give me the money back because I want it. Yeah, it's like she said people are so careful and considerate and organized. That's such a good point. And I think companies have been burned in the past with not the company that she works for. And these things were put in place before she arrived, but she gave some really good advice about what they do. So they can give people a float in advance that starts them on their expenses journey. So you're not expected to fund 500 pounds for the first month of expenses.

The company will give you a loan, a float, a five. £500 that you can use for your first month of expenses, so then you're not in a rear straight way, if that makes sense. And then when you lead the business, you have to give it back, basically. Well, and if you, yeah, there shouldn't be any. Yeah, it should even itself out, basically. But so they give a float. So that could be a really good option for you to go to your MD and say, okay, I understand that I can't have a company credit card, but because these expenses are so high and I'm having to front them, you can be honest and say, I've got myself in a mess with my personal expenses, company expenses, and therefore credit card.

I'm starting afresh. I would love you to give me a 500 pound float. I'll sign wherever, you know, the accountancy team needs to be to do whatever. It just gives you a bit of breathing space. No, I think it's a great idea. I think, you know, the pray for a lottery win. We all do that. I do it every day. But you're not far off. Better, you're nearly there. So please don't be discouraged. And if you can put $6.50 a month as a credit card, when that's paid off, that's going to go into your savings. That's going to be six grand of savings before you know it. It could be seven grands of savings. Or an enhanced lifestyle that you've been waiting for as well. If you've got your emergency fund sorted, you can proportion some

to savings. A little bit of a treat. Yeah, but as in like she mentioned a kit, should I'm not living a life that I thought I was going to live. You can have it both ways. Well, good luck, go for it. Let us know how you get on. But hopefully, I think you're doing the right things. You're not far off. Don't lose focus. May, let's say it's gone by me. Then you're building up and putting that money to you and your family. Congratulations on the pay-of-ice. Yeah.

I'll give yourself your own float as well if your company won't give you one once you've got in a good place financially. Definitely. Congrats on the promotional. Did you know that over a third of women in the UK have no protection in place compared to just 16% of men? We've partnered with Life Search so you can chat to an advisor for free and get the cover that you deserve. Head to fanashel.com for slash protection to get you. your free quote today. Planet number two, really.

It's technically number one, but we had a mini follow-up from Betty, so this is dilemma number two. No more student loan, $380 pounds better off a month. What do I do? Hello, ladies. Hope the halls were great.

However, back to work. I need your advice. Apologies for the long dilemma. I'm in the very fortunate position of being one small payment away from clearing my plan one student loan at 38. I have always viewed it as graduate

tax until the last few months where I've actively thrown money at it to clear it as quickly as possible. This will leave me £380 per month better off. This is net and I'm a high rate taxpayer. I have no debt other than a mortgage, fully funded six month emergency funds and sinking funds. I'm a loyal playbook follower for about 12 months now and I have increased my net worth overall by 11%. I feel financially well. As I've never had this cash before, I'm working on the theory that I'll not miss it, so want to use it to set up future security and potentially enable an earlier retirement. I'm thinking of salary sacrificing it as its pre-tax value of the net, so it would be a bigger number than this, into my workplace pension. I am maxing out the company match so no additional

contributions would be gained. Other options would be overpaying mortgage further. We are already doing this to half our current 30-year term or invest more into a stocks and shares ISA. The last two years have all been about saving and working towards buying our forever home, which we achieved earlier this year. So I have no idea what to do next. Are there any other options of ideas you have of what I can do with this bonus cash? Grow is a strange place to be. As always, love the pod and what you do. Grow is a strange place to be and we probably don't talk about it enough sometimes. We like survive dilemmas come through because that's when people are literally in survive mode. And if you don't know about financial, we've got a methodology and a playbook,

there's three stages, survive, build and grow someone a couple of weeks ago introduced their dilemma as I'm in Survive and I was like, I think we're probably to explain that a little bit more

but depending on where you are in the journey you'll fit into these categories and Grow is a really interesting one like Laura and I are in the grow stage and sometimes it's just as confusing as if you are in Survive or Build like you've not got all the answers and there's still more dilemmas that pop up

like excess cash, what do I do with it? Hers is really interesting in a really good place about to pay off her plan one student loan, bought the Dreamhouse, max contributions at work, is now going to have excess cash once this student loan's kind of gone and what does she do with it? She's already sounds like she's investing in a, is she in a stocks and shares ice? Did she say? No, she's asking if she does

a pension, she's asking if that could be an option. Yes. So she says invest more into, so yeah, maybe she's already doing that. Mine would probably be looking at the performance of each of those investment classes and being like what's outperforming well, because she's, going to get no more contributions from her employer because she's max that out, but she will get contribution from the government, won't she, depending on how much she puts into her pension. You should get tax. Yeah, it's more tax efficient. Yes. I think for me, this like comes down to this what grows important. So when you put your income at the top and then all your expenses and then you've got your excess cash at the bottom, we ask you to decide what you want to do with it and

we want it to increase your net worth. The reason I hesitated was there's a kind of caveat for that, which is also make sure you live your life. Yeah. But that's in build. So big, big, big goals. Like buying your dream home. Yeah. Or even like enhancing your expenses.

Growing your sinking funds. Like having, enjoying your money a little bit as well. And so big life goals. Once you've got your big emergency fund and you've nailed the property that you're going to be in, relax that budget a little bit. And like my mom and dad have joined, like they love David Lloyd. And that is a lifestyle change for them, a big financial commitment. but something that I think they foresaw in retirement

as being something to work towards. It enhances their life and they're not doing it at the expense of then like running up debt or doing something else. And it might be the switching to M&S shopping or it might be a dinner out every month. But, you know, $380 is a lot and not a lot. And that's sometimes what's harder about smaller amounts because you're like, well, it's not going to like pay off my mortgage,

but it might help, but they're doing a little bit of that. And most people find balancing grow. they find that this is the one stage where all the other stages you're meant to do one thing at once. You're meant to really focus on one thing because if you try and do too many things, you don't get anywhere. Whereas with Grow, you know, it is the stage where as long as you, I like you having one big goal and then automating other bits. So for example, for us in Grow, it's a grower investments. So every so often we'll have paid the mortgage a little bit. Or we use Sprive and we kind of benefit that way as well.

or we invest in our children's junior ices, which by the way doesn't include our net worth. And so, you know, we have to come first because we're financially well they are, but we do that as well. And then sometimes we put money into a lifetime, lifetime ISO or stocks and shares, IA, but primarily for us, we do pension

because that aligns with our long-term growth goals. So we're doing a few different things. It sounds a bit messy, but our main goal is investments, which is why it goes into pension first and the rest kind of gets paid around. Yeah. it really does.

You don't, you've spent so many years slogging it and you've just got the home and you've got the home now. You've done all this year saving. Sometimes it's nice to carry on doing a little bit of that because that's what you like doing but I'm tempted to divide this up between enjoying it. Enhancing lifestyle. Enhancing lifestyle. Yeah.

And do something like, you know, whether it's date night, whether it's. Could be a hundred quill out of that 380. Yeah. It might only meet 100 or 200 quid. to be a lot, but that will not necessarily derail you financially. No. And then otherwise, she talked about maybe wanting to share it, maybe retire, yeah, potentially in earlier retirement.

The interesting thing there is your pension is just kind of crack it on, but you can only access that, you know, when the pension age hits. Mortgage is tempting to me because the fact that you're already overpaying your mortgage and whatever you've managed to do is half in it. I'm like, I am eyes on the price when it comes to mortgage, just with the interest rate stuff and you feel a bit vulnerable. out of your control to not have that monthly, which is your biggest outgoing. What would you do? So this isn't that financial advice? Like, what would you do? I think more at the moment in my stage

of life of this. If you said to me, I've got an extra £380.000. You would do pension. I do a lot now though. I already do that. Okay. So then if you had extra, you'd be like, okay, I feel like I'm over skewed on the pension. I'm going to bring it to. And this is what I always say is really important about investing. There's pre and post retirement investing. Or there's pre-imposed retirement decisions, like a mortgage decision again, is enhancing that. early retirement because suddenly you've not got a mortgage payment. I think when you see the money, like you taught me like your overpayments is off the capital and that's just so like, oh, I really want to do that.

So I can see. But they're already, you know, she could turn around and say, do you know how much I've put I overpay by my mortgage? Like they're doing something considerate to half it, I would say. So they might be over that 10% and then you get, you get penalised on paying plus 10% over the time. She sounds like they're like having something to focus on and maybe, maybe, maybe, house, maybe mortgage up to the penalty. Yes, is great. Yeah. For people like this, by the way,

and this is like, again, something to always consider and speak to a mortgage advisor about, I love an offset mortgage because an offset mortgage, oh, that's so good. So, say if I'm not going to describe this right, but I'm going to try and describe it. Well, I'm definitely not, because I don't even know what it means. Describe it in like a non-mortgage advisor way. But say if you have a house worth 200,000 pounds and you have an offset mortgage, say if you've got 100 grand mortgage, you could overpay that. You could, I'm not going to make sense, but you only pay interest on the amount of the mortgage.

So if you came into 50 grand today, you could put 150 grand into your savings with the same bank and they offset it against your mortgage. So then your mortgage is only a 50 grand mortgage. And if you suddenly got another 48 grand, you're like, I want to pay that off the mortgage. What's the downside? Because you return, so you might get better returns elsewhere. So you're saving on the interest, but you get access to that cash. So you could end up, like some people have an offset mortgage of a grand,

but they can come back into debt if they want to and take out another 200. I'm like, I'm just explaining it rubbishly. What it means is there's no other... You can't see Lydia, but she's got her head in her hands. Do you know why I said to speak to an advisor? But basically, it's like you get no one. overpayment penalty and you can take it back if you want it back. So it's like having an account that you draw down on, you pull up on. So it's really good for flexibility. Like if you,

if you're someone that likes high cash savings, and some people do this as a get older, by the way, if you like having high cash savings, it's very reliable. If you have an offset mortgage, it reduces the amount of interest obviously you're paying on your mortgage. And then if you suddenly need that cash back, you can draw it back down and your mortgage balance goes up. It's not like locked. It's not this like locked away feature. It's basically, it's offsetting your savings and your mortgage as long as it with the same. bank. So Google it and find out better than me because I'm going to do that thing where you go, hi-chat GPT. Talk to me like I'm a five-year-old. Explain to me, don't off and set mortgages in three

words. But for people that like a run overpayment journey is one to explore and all banks do it and not all the providers do, but speak with the mortgage advisor, that's one thing that may be I think pick you, you've saved, you've been saving for the house, maybe having one thing that you go, we're doing this, really works for you, but beware of the 10% overpayment penalty, because if you are easily hitting that and you may well be, pick another goal. And for me, yeah, maybe it sounds like a pre-retirement, maybe it sounds like a stocks and shares ice or something like that. Yeah, because you really, you sound like you've gone ham on the pension, which is great.

And you want to retire early. So you need that money before. Yeah, absolutely. Well, she's told, yeah, you're right. She's told us her goal is to potentially retire early. So you need pre-retirement stuff because it sounds like you've got your pension sorted. But fantastic. Very, very, very, very...

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We're going to jump into Dalem a number two-struck three, depending on how you look at it. I turned 40, I'm 17,000 pounds in debt, and I'm done using credit for good. Hi ladies, I'm a long time loker and listener and Fran and Shell. Love the pod. Loves in capitals. Love the pod.

Emphasis on the love. I recently turned 40, happy birthday, and have decided that this is my decade for getting my money shit together at last. I have been managing some kind of debt for most of my adult life from a student overdraft to credit cards and a loan or two, which I have managed to pay off or reduce down at times only for the debt to creep back up again. I have long been a serial impulse buyer and overspender, and have got a use to managing the debt repayments. However, these have been escalating over the last couple of years, and I reached a point where my budget became stretched to the max with juggling the minimum payments. I currently have two overdrafts, three credit cards and a loan, totaling £17,000. When I began tracking these using financial a year ago, my total debt was $21,000, so while it's been great to track this and see the debt reducing over time, I have had a few false starts with getting my money shit together.

For example, starting an emergency fund, then spending it, clearing one card only to spend more and another. Oops. Since hitting 40, I feel like something has clicked. I've just created my first ever budget in the app ahead of getting paid next week. I'm currently halfway through completing a no-spend month and I am determined to quit using credit for good. I've dabbled with buy now pay later, however only occasionally for small amounts

and I recently cleared my remaining Klanar balance and deleted the app for good. I have a trip planned with friends later this year, which I am currently saving a sinking fund for, and I'm also building my mini emergency fund through any means possible, bank switches, vintage selling, you name it. Thanks to Fan and Shell providing invaluable information around finance and money, I finally feel there's a light at the end of the tunnel, and I can't wait to enjoy a brighter financial future. That's like a dilemma slash win, because what she's saying at the very? beginning of the dilemma that she couldn't cover her basic costs. I think she's done amazing.

And there's something on that, right? Lots of people aged between 35 and 50. We are the babies of the not percent finance revolution. We started off with credit cards and then it was overdrafts. Payday loans. I've seen these funny... Payday loans. These funny memes of like men sat in suits and finances being like,

how else can we make money? It's like what product could we create, you know, the advent of like borrowing, borrowing, or mortgages are cheap, borrow, borrow, borrow. So our generations that span a couple of generations really, finance has just always been thinking store cards. Would you like 10% off Debenhams? Which like 10% off Top Shop?

We've had this chat. I was the top Debenham's card person and now I can't sleep at night. Well, this is why, this is your penance, that's why you do this job. But it became normal. And most of us have had, had debt way longer than we've had relationships or jobs or houses or marriages. Like, it is

crazy. And I just don't think people realize what it's like to finally go, I'm done. And I think that's what she's done. She's finally said no. And for years, people try and get out of debt. And like said, you know, Martin Lewis loved a 10% credit card for people. And it's great if you're the person that can manage it. But so many people ran up tens of thousands of pounds of debt based on the fact that not percent was good. And Matt and Lewis said it was okay and whatever he says goes. And he is so good. He's the consumer champion.

He can do it. But 5% of like, so few people. So few people can manage a not percent card. It's easier said than done. And people have run up thousands of pounds on these cards thinking that not percent was a good thing, but it's not free money. We have to pay it back. And the human in us, you know, that's the harder thing.

It's not the maths here. It's the human emotions. And I just think that sometimes we do need to have that I've had it moment and you have to hear it. hit a bit of a rock bottom and that's what she's done like it's the decade

it's the new me and I feel like she's already made loads of progress do you have any tips for her that's like keep it going it sounds like her light bulb

moment was when she actually put all the debts into the app to work out the total like so many people go oh I'm in debt or I'm terrible with money I'm shit with money

they don't actually know what that figure is and sometimes having a figure to work towards and to have a goal to pay it off can it makes you create solutions

to the problem So like within the app you can put, you know, what you want your debt-free date to be or how much excess cash you've got to put towards paying off your debts each month. And then that will give you the payoff date. To just say I'm going to be debt-free is really easy, but actually quite hard to do. Whereas if you have some sort of plan and commitment to £200 a month to go to this one, I'm doing the Snowball method or the Avalanche method, whatever it might be, which you can go to financial.com. There's loads of free debt-free guides. We've got guides whether you choose snowball or avalanche debt payment method, dropping it in the community.

I think the only time that this person's fully gone, I'm getting my shit together, is when she's realized the extent of how much debt she's got and then come up with a plan there for to pay it off. It's just really easy to say, I'm going to be debt free this year. I'm going to be debt free because you don't know the facts and the figures and the methodology. Well, listen, we always talk to the ostrich where you bury your head in the sand, but she's basically accepted that most of her adult life she's been in debt. And so I say this to people, if not now, when.

You know, like I've got a friend who we had coffee with and it's like, oh, I'll do it eventually. I'm like, but we've got this a be a trip. We've got this trip. And it's like there'll always be something. There will always be something. You know, but if you're finally, you know, like this person sounds so excited about, she's getting chaotic. Not a chaotic. Like obsessive, like bank switches, vintage selling.

This is the momentum that you need. You squeeze this money. You build that emergency fund. and then you go, right, I'm going after the debts, and you cut up all cards and you delete all accounts and you say, I'm not like, credit, the best thing for me that I ever did years ago and hours ago, never again.

Yeah. There's a way. So there's always, you're always... You're always tempted, though. You're always tempted, there's always a, ooh. What if we just look at credit now, like, oh, that's not for me? And like, if you're using credit, what is it for? It's because your current budget doesn't allow you,

you can't afford it with the money that you've currently got. So in my mind, I go, so therefore it's not for me. Whereas other people go, so I can just borrow it and pay it back late. And I'm like, and then we're 10,000, 20,000, 30,000 pounds down the line. You just never get ahead, dear. If you need to lean on credit, there's something wrong in your budget, whatever you, that your outgoings are more than what's coming in. And that's what you need to fix. I would love, like someone's listening to, it's kind of like a win, isn't it?

That win. I thought it was a win. I didn't read it as a dilemma. That's why I was like, so what's the dilemma then? I know. Yeah. I think it was my phrasing of it. But I definitely feel like she.

is showing that if you're ready to go all in and get committed, she's building that many emergency fund, she's got a singing fund for a trip with friends, so she's still able to live life. But she's like taking control of it. And to do this at that age, you know, your future you in five years is going to be like the things that she'll have learned during this process, unlearning some behaviours, but learning positive behaviours, how to squeeze a budget, how to put it away and not use it. She's just going to be, yeah, she's going to be absolutely rocking and rolling so well done we're very very proud. 40 as well. So many people writing and go, it's just too late. I know I've messed up and you're like, no, no, we get people in the 60s that come to us and

go, I don't have a pension and we're like, yeah, let's work out what you can do. It might not be, that might not work, but why don't we try this and why don't we try that and balance your budget every month? Like the basic stuff, like this is so basic even though the emotions come into it. We just try and make it as simple as possible to take that control. I'm excited for her. I'm excited. Tell us how it goes. That's all for this episode. Thank you so much for Betty for the voice notes. Bring the voice notes to the table. We do want more audience participation, watch this space, but we are here for them. We don't even if you don't want to reveal your name, we don't, maybe your voice is distinct and you're like,

Betty's definitely, people will know who I am. But please do send them because we love incorporating you into the show, the shows for you. This is why we do it. So yeah, have a great day. The Vault is now closed. And just a quick disclaimer, the Vault is a chat around life and money topics. We're not giving financial advice. Thank you.