Mum of two cleared £4,000 debt and then managed to save £10,000 in ONE year – here’s how you can do it too
Morgan Woods had no savings and decided "enough was enough" when she had to borrow money from family and friends to move house
A MUM OF TWO who cleared thousands of pounds worth of debt and saved £10,000 in a year wants to tell other families in the red that they can do it too.
Morgan Woods, and her partner Tom Brown, decided "enough was enough" when they had to borrow money from friends and family to find somewhere to live after their landlord sold their rented home.
As well as having no savings, the couple were in debt to the tune of £4,000 on store and credit cards, leaving them and kids Tegyn, 10, and Imogen, 8, worried about what the future held.
Morgan, 30, from Kings Lynn, said: "We weren't spending on anything too elaborate, no luxury holidays or anything like that.
"But we were overspending on things like clothes and food and stuff we didn't need - we were quite big shoppers.
"I wasn't too worried about it at the time - it was just one of those things I thought I would deal with in the future.
"But when our landlord decided to sell up we didn't have any money to move - so we couldn't afford the fees or the deposit to move, and had no money for emergencies.
"That was the wake-up call and when we decided things need to change after that. Enough was enough."
The first - and most important - thing the couple did was to write-up and stick to a budget.
By doing this, they managed to slash the cost of their monthly grocery bill in half from £400 to £200, allowing them to pay-down their debts and start putting a little money aside.
How to save £10,000 in one year
MORGAN and partner Tom cleared £4,000 of debt and saved £10,000 in 2017. Here are Morgan's tips on how you can do it too.
Make a budget and stick to it - Look at your incomings and outgoings and work out what you can spend each month. Cut out the things you don't need like clothes.
Cut down your shopping bill - Meal planning, sticking to what's on your shopping list, using coupons and discount codes and buying "yellow sticker" items can slash the cost of your monthly shop.
Make money from home - Selling unwanted things on eBay and doing online surveys can really give a family a cash boost.
The couple have a joint annual income of around £34,000 after tax and have tried to save around £1,000 each month.
The family account has also been boosted by Morgan making money from home - including selling unwanted items on eBay and doing online surveys.
And their budgeting has been so successful, that they've managed to put away a whopping £10,000 in 2017, which they hope will be the starting point for a deposit for their first home.
"There's no secret to it really, it's just about cutting back," Morgan said.
"We looked at everything and looked where we could reduce our outgoings - buying yellow sticker items, meal planning and using coupons really helped.
"All our old stuff goes on eBay. Nothing goes in the bin anymore.
"The kids go through clothes so quickly so all that goes on there - we can around £200 a month depending on how much we put up for sale.
"We have started looking a little bit for houses.
"We could potentially buy now with the £10,000 but we would rather carry on and get as big as deposit as possible."
How to cut the cost of your debt
HAVING large amounts of debts 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 free 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 Money Advice Trust offer free advice and can help you prioritise and negotiate with your creditors to offer you more affordable repayment plans.
There are increasing concerns that UK households are carrying far too much debt.
Back in October, boss of the Financial Conduct Authority (FCA) Andrew Bailey slammed credit card companies for not doing enough to help the five million consumers struggling to pay their bills.
The watchdog is thinking about introducing new rules which could see those struggling the most have their card charges reduced or wiped completely - saving a potential £1.3billon a year.
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The festive period also means families put their finances under greater strain, with research from price comparison site uSwitch.com revealing the average Brit stuck £452 on credit cards to cover the cost of Christmas.
More on money
But while getting on a sound financial footing can seem unrealistic for lots of people struggling, Morgan thinks everyone can take action to ease their financial stresses.
"It can change," she said.
"You've just got to get that budget sorted and have a positive mindset about it.
"The small changes might night seem like a lot - when you start you think this isn't going to do anything at all - but it makes such a big difference after a few months saving."
You can hear more about Morgan's money saving tips by and her blog at
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