Single Mum’s Debt-Free Journey: How I Cleared £15,000 Using the Snowball Method

The Path to Financial Crisis

Family Loan Gone Wrong

At the tender age of 19, Stephanie Ward from Bedlington was asked by a family member to take out a loan in her name to repair a vehicle.

Driven by a sense of familial obligation, she agreed, but soon found herself in a quandary when the family member stopped repaying the loan.

This left Stephanie with a financial burden of £150 monthly payments, which she struggled to keep up with.

Living paycheck to paycheck on a modest salary, this unexpected expense was the beginning of a precarious financial journey.

Stephanie realized that she had been thrust into debt with no clear strategy for managing it.

The Struggle with Maternity Pay and Credit Card Debt

By the age of 21, Stephanie’s life took another turn when she became pregnant with her son.

The low maternity pay barely covered basic expenses, let alone the previous loan obligations.

Maternity expenses added to her challenges, and Stephanie found herself relying heavily on credit cards to bridge the gaps.

Essentials like clothes and day-to-day items were increasingly bought on credit, causing her debt to spiral out of control.

Every month became a juggling act—deciding which bills to skip to keep the essentials running.

The mounting credit card debt became a growing concern, deepening her financial woes.

Divorce and Tax Complications

As if the situation wasn’t complicated enough, Stephanie faced further turbulence when she went through a divorce.

The separation brought its own set of financial complications, adding to her already strained resources.

Freelance work in copywriting and proofreading offered some relief, but not enough to stabilize her growing debt.

Adding to her financial mismanagement, she registered for tax without realizing that her freelance earnings fell under hobbyist income, leading to a £1,000 fine.

Moreover, due to poor record-keeping, she had to pay back £2,500 in tax because she couldn’t provide the necessary receipts.

A Glimmer of Hope

After one financial mishap after another, Stephanie found herself at a crucial juncture.

Living in constant financial stress became untenable.

She started looking for ways to regain control and stumbled upon various resources that would eventually change her financial outlook.

This newfound determination led her to seek guidance, setting the stage for the changes that would follow in her journey toward financial stability and independence.

Taking Control with the Snowball Method

Joining a Money Club for Financial Guidance

After grappling with her growing debt, Stephanie Ward realized that she couldn’t face her financial struggles alone.

She needed a sound strategy and support system to get out of the £15k hole she was in.

That’s when she decided to join a money club. This decision marked a crucial turning point in her financial journey.

The money club provided Stephanie with the financial guidance she desperately needed.

It brought together like-minded individuals who were also seeking to take control of their finances.

The club offered a sense of community and shared experiences, which helped Stephanie feel less isolated in her struggles.

Implementing the Snowball Method

One of the key strategies Stephanie learned from the money club was the snowball method.

This debt repayment strategy involves focusing on paying off the smallest debts first while making minimum payments on larger debts.

As each small debt is paid off, the money that was allocated to that debt is then rolled into the next smallest debt, and so on.

For Stephanie, this method was instrumental in her journey towards becoming debt-free.

By targeting the smallest debts with the highest interest rates first, she could see tangible progress quickly, which motivated her to keep going.

Using the Mad About Money App

Stephanie also tapped into modern technology to aid her financial education.

She began using the Mad About Money app, which offered a wealth of resources on financial education and community support.

This app played a significant role in helping Stephanie understand the intricacies of personal finance.

It provided tutorials, tracking tools, and a supportive community forum where she could ask questions and share her progress.

The combination of the snowball method and the educational resources from the app empowered Stephanie to make informed decisions about her money.

She began to see her debt decrease steadily, which was a powerful motivator to continue her efforts.

With a solid strategy in place, a supportive community behind her, and the right educational tools at her disposal, Stephanie was well on her way to gaining financial freedom.

Her next steps focused on implementing smart money management strategies to build a stable and secure financial future.

Smart Money Management Strategies

Stephanie Ward’s journey to financial stability involved more than simply paying off her debts.

She needed to establish smart money management strategies to ensure long-term success.

One tool that greatly contributed to her efforts was opening a Monzo account, which allowed her to organize her finances more effectively.

Setting Up Monzo Savings Pots

Upon opening her Monzo account, Stephanie took advantage of the “savings pots” feature.

This feature enables account holders to allocate funds into specific, individualized categories.

Stephanie created separate pots for daily expenses, birthdays, holidays, house maintenance, and her son’s school uniforms.

By dividing her money into these distinct pots, she could budget more easily for each category.

While some pots initially started with just £5, it wasn’t about the amount; it was about the habit of saving and having dedicated funds for each purpose.

Allocating Funds for Specific Expenses and Emergencies

To maintain control over her finances, Stephanie allocated funds systematically.

Each time she received her income, she made sure to distribute it among her savings pots.

Priorities for allocation included covering monthly essentials, paying down debts, and setting aside money for emergencies.

This structured approach ensured that no aspect of her financial responsibilities was neglected.

It also provided her with peace of mind, knowing she had funds readily available for unexpected situations.

Gradual Building of Savings

Building savings can be daunting, especially when starting from a difficult position.

Stephanie’s experience taught her that starting small is key.

By putting away just a little bit of money consistently, she gradually saw her savings grow.

Whether it was £5 or £10, each contribution added up over time, demonstrating the power of consistency.

Stephanie’s success stemmed from her disciplined approach in prioritizing saving alongside paying off her debts.

Through these strategies, Stephanie not only managed to organize her finances but also instilled habits that would support her financial well-being in the long term.

By focusing on systematic savings and thoughtful allocation of her resources, she laid the groundwork for stability and future growth.

As she continued to refine her approach, Stephanie was prepared to address the additional challenges brought by her neurodivergent condition.

Overcoming Neurodivergent Challenges

Managing ADHD and Autism-Related Impulse Spending

Managing finances can be tough under normal circumstances, but adding in ADHD and autism can make it even more challenging.

Stephanie Ward faced this struggle firsthand.

With ADHD and autism, she found herself prone to impulse spending, which strained her already tight budget.

One of the first steps she took was acknowledging how these conditions affected her spending habits.

Stephanie realized that her impulsivity led to frequent, small purchases that quickly added up.

By recognizing this pattern, she could start developing strategies to combat it.

Developing a Systematic Approach to Financial Management

To manage her finances more effectively, Stephanie needed a systematic approach.

This meant breaking tasks into smaller, more manageable steps.

She began by identifying her monthly expenses and categorizing them into essential and non-essential spending.

Creating a structured budget was crucial.

Stephanie set up a detailed spreadsheet to track her income and expenses.

This transparency helped her see where her money was going and identify areas to cut back.

Stephanie also employed a “challenge fund” concept—setting small, realistic savings goals for each week or month.

For example, saving just £5 weekly into a dedicated “impulse spending” pot allowed her to indulge occasionally without derailing her overall budget.

Finding Appropriate Tools and Support Systems

Finding the right tools and support systems made a significant difference for Stephanie.

She started using the Mad About Money app, which provided invaluable financial education and a community of people facing similar challenges.

The app helped demystify finances and offered a supportive environment where Stephanie could learn without judgment.

Stephanie also found the Monzo account useful.

This digital bank allowed her to create multiple savings pots for different expenses, from bills to birthdays to emergencies.

This physical separation of funds made it easier to stick to her budget and avoid impulsive expenditures.

Additionally, Stephanie sought out support groups specifically for neurodivergent individuals.

These groups provided emotional support and practical advice tailored to her unique needs.

By connecting with others who understood her struggles, she felt less isolated and more empowered to tackle her financial challenges head-on.

Stephanie’s journey proves that with the right strategies and support, overcoming the financial hurdles associated with ADHD and autism is achievable.

Her progress through these methods set the stage for her later successes.

Stepping through these strategies allowed Stephanie to find a systematic approach to manage her finances despite her neurodivergent challenges.

Her growing confidence laid the groundwork for what was to come next in her financial journey.

Success and Giving Back

Achieving Debt Freedom

By 2019, Stephanie Ward managed to clear her £15,000 debt, marking the end of an arduous yet transformative journey.

Through unwavering discipline and the application of the snowball method, she systematically eliminated her debts one by one.

Each cleared debt was a small victory, steadily building momentum until the entire burden was lifted.

Stephanie’s financial struggles had been overwhelming, enhanced by the complexities of her neurodivergent condition.

Yet, her determination saw her through to a place of stability and empowerment.

“Every fiber of my being felt lighter,” she recalled.

The disciplined approach she adopted not only resolved her debt problems but also imbued her with invaluable financial skills and self-confidence.

Founding The Spice Brain Collective

Motivated by her journey, Stephanie established The Spice Brain Collective in 2019.

This initiative was close to her heart, aimed specifically to support individuals with ADHD and autism in managing their finances.

She understood firsthand the unique challenges faced by neurodivergent individuals, from impulse spending to the difficulty in accessing appropriate resources.

The Spice Brain Collective offers:

• 💵 Educational resources tailored to neurodivergent needs.
• 💵 Continuous community support to encourage and sustain progress.
• 💵 Tools to assist in systematic financial management.

Stephanie’s vision was to fill the gaps she had encountered in her own journey.

“There are so many barriers to accessing the right information at the right time, regardless of ADHD and autism,” she said.

Her mission was not just to provide information but to empower individuals to leverage their unique strengths in their financial management.

Specialized Support for Neurodivergent Individuals

Recognizing the complexity of managing money with neurodivergent conditions, The Spice Brain Collective provides specialized support aimed at:

• 💵 Reducing impulse spending by teaching structured budgeting and expense tracking.
• 💵 Offering tools like the Mad About Money app and Monzo account, which played an essential role in Stephanie’s journey.
• 💵 Connecting people with a supportive community that understands their challenges.

Stephanie’s initiative is a beacon of hope for many, demonstrating that with the right tools and support, achieving financial stability is possible even in the face of neurodivergent challenges.

Stephanie’s story is not just about overcoming debt; it’s about transforming adversity into a force for positive change.

Her efforts continue to inspire and support others on their journey to financial independence.