I cleared £6,000 of debt using the penny savings challenge – here’s how

BEING savvy about your money isn't something that comes easy to everyone, as Joe Brierley realised when he was £6,000 in debt in his early 20s.

The now 31-year-old learning consultant claims to have cleared the money he owed, and it's in part thanks to a simple penny savings challenge, reports

He also used a spending tool on his Monzo account to keep tabs on his finances, cutting down on nights out and takeaways.

Joe was in £3,000 worth of debt after university aged 21, owing £2,000 on a student overdraft and £1,000 on a credit card.

He then got £2,000 more into debt while renting and spent £1,000 on funding personal training sessions.

Joe said: “At the time, ignorance was bliss. As long as I was paying the minimum payments, it was almost like it wasn’t real money."

It took two and half years to pay it all back and one of the methods he credits with helping him was a 1p savings challenge.

You can save whatever amount you want but the theory is that by stashing away small amounts it will be easier to get in the habit.

That's because it starts from just 1p: so on day one you add just a penny to a savings account, and on day two you add 2p, then day three it's 3p, and so on.

Plenty have had success with the same method in the past - one family managed to pay for their Christmas holiday trips after a whole year spent saving with the method.

The 1p savings challenge could help you save up to £670 if you stick to it for the full year.

Of course, you can choose to use any amount that works for you.

It wasn't just this savings method that helped him clear his debts, but it could help your get in the right mindset.

Joe also opted for another savings method based on the weather. Every time the temperature fell below 10C he would add £2 would to his savings account.

Others have tried similar methods before - like one TikToker who added £2 to her savings account every time it rained - with the unpredictable British weather being a great help in quickly raising funds.

He then consolidated all his debts into a loan to help keep track of it.

Remember, if you're going to get a loan to consolidate your debts you should do your research first.

Work out if it will cut your debts and it may be advisable to speak to a debt expert for free advice.