A couple who built up £43,000 in debt had to live on £1 a day to help pay it all off - and now have some 'ruthless' money-saving tips.
Ricky and Naomi Willis, from Hull, both lost their jobs within months. They struggled to afford food after racking up debts on payday loans and credit cards.
Their troubles began when Ricky lost his job as a machine operator at a printing firm and the following year Naomi lost her job in insurance, the Express reports .
With no money coming in, they quickly accumulated £43,000 in payday loan , credit card and catalogue debt.
Things came to a head when their car and fridge freezer broke down in the same week, wiping out their remaining savings, and adding to their debt pile.
Ricky says: “We knew the repayments would eat up everything, but had no choice. It just kept spiralling from there.”
The family of four hit rock bottom when Ricky realised they had to live on less than £1 a day.
“We drew up a list and feeding our two daughters Daniella and Chloe was top, then nappies as Chloe was still a baby," Ricky said. "Us eating came third.”
Ricky, now 42, went to bed that night and cried. “I felt like I had let my family down," he went on.
Ricky and Naomi, 37, started their journey back to solvency by ruthlessly scouring their bank statements to cut back on all non-essential spending.
Research from low-cost broadband provider Plusnet shows the average householder pays £299 a year over the odds on their mortgage, £222 on fuel bills, £156 on broadband and £132 on TV packages.
They also spend £162 on car insurance and £84 on pet insurance even when cheaper alternatives are available.
Naomi says: “We made sure we weren’t spending a penny on products or services we didn’t absolutely need. That saved us thousands of pounds a year.”
They set up individual payment plans with creditors, used money-saving apps like Freecycle, sold belongings and stuck to cheap meal plans.
Their approach worked, and they became debt free in just four years.
Ricky and Naomi, set up the Skint Dad blog in 2013 to help other people get their finances back on track. Now their money-saving tips are helping hundreds of thousands of followers as living costs skyrocket.
Naomi said: “It’s going to be a really tough year for a lot of households. It might seem impossible to weather the storm but there are things you can do to ease the pressure.”
Here are their top money saving tips.
Be energy smart. Even simple measures can save money. Block drafts from doors, windows and even an unused chimney, lower radiator thermostats in unused rooms, and turn off appliances and lights when not in use.
Get cashback when shopping online. Use sites like TopCashback or Quidco. Airtime Rewards lets you double your cashback.
Check your bank account regularly. Check direct debits and standing orders and cut back on what you don’t need.
Beware TV subscriptions. Costs quickly add up. "Do you watch many of the series or films on every service? If not, cancel and save," Ricky says.
Save on fuel. Check local fuel station prices online before filling up, or use loyalty schemes.
Meal plan. Planning weekly meals for your family will reduce the money you spend at the supermarket and lower food waste.
Use a slow cooker. These devices use less energy than an oven and produce delicious slow-cooked meals.
Claim all tax benefits. Website Turn2us.org.uk lets you check you are claiming all state benefits available to you.
Consider a side job. From online tutoring to party planning to ridesharing, this could be a great way to make extra cash.
Tackle any debts. Contact StepChange Debt Charity or National Debtline for free and impartial debt advice.
Joanna Carman, director at Plusnet, said: “Simple tricks to shop sensibly and avoid complicated offers can be a massive help at times like these.”
