Here’s how I paid off $20,000 in credit card debt on a $45,000 salary

Woman, 26, who earns $45,000 a year reveals four budgeting hacks she used to pay off $20,000 in credit card debt in just ONE YEAR – without cutting any ‘extra spending’

  •  Lexa VanDamme, 26, has revealed how she paid off $20,000 in credit card debt 
  •  The US content creator and budgeting expert was earning $45,000 a year 
  •  She shared the four hacks in a TikTok that has had more than 124,000 views 

A woman has revealed how she became a budgeting expert and paid off $20,000 in credit card debt in just one year – all while earning a salary of just $45,000.

Lexa VanDamme, who is the CEO of The Avocado Toast Budget, took to TikTok to detail the four hacks that helped her get rid of her debt once and for all. 

The savvy 26-year-old shared that she got serious about her spending habits after she became too swipe-friendly and racked up $20,000 worth of credit card bills. 

In a viral video that has garnered more than 124,000 views, the US-based content creator detailed how she paid off her debt without cutting out ‘all extra spending.’

Lexa took to TikTok to detail the four hacks that helped her get rid of her credit card debt once and for all

She revealed how she became a budgeting expert and paid off $20,000 in credit card debt in just one year while earning a salary of $45,000

She revealed how she became a budgeting expert and paid off $20,000 in credit card debt in just one year while earning a salary of $45,000

In a viral video, she revealed she paid off her debt by no longer swiping her credit card

In a viral video, she revealed she paid off her debt by refinancing to a personal loan

In a viral video, the US-based content creator revealed how she paid off her debt by not spending money on her credit card and refinancing to a personal loan

Get rid of debt forever! Lexa’s four hacks that helped her pay off her debt

  • Stop spending money on credit cards 
  • Refinance to personal loan 
  • Begin a budgeting system like the zero-based budgeting method 
  • Don’t cut out all extra spending 

She captioned the clip: ‘A breakdown of how I paid off $20,000 in credit card debt in just one year.’

Lexa began by giving her more than 478,000 followers some background information on her situation. 

‘For perspective, I was making about $45,000 a year, lived in a dual-income household, and we didn’t have kids,’ she explained.

Lexa’s first tip was stop swiping your credit cards.

She said: ‘Number one, I stopped spending money on credit cards, at least while I was trying to pay it off.’ 

Next she said that she refinanced it to a personal loan, which the budgeting expert added helped ‘lower the interest rate,’ making it easier to pay off. 

For her third tip, she recommended her followers adapt a budgeting system that felt right for their specific situation.  

‘Number three, I got on a budgeting system that works for me. At the time it was a zero-based budget, but really whatever works for you, that’s what you should do,’ she explained.

Zero-based budgeting is a method that requires all expenses to be allocated and approved. 

She also recommended her followers find a budgeting system that works for them

She also recommended her followers don't cut out all extra spending

She also recommended her followers find a budgeting system that works for them and that they don’t cut out all extra spending 

Viewers flooded her comments section with words of praise, noting that her story had 'inspired' them to take control of their finances

Viewers flooded her comments section with words of praise, noting that her story had ‘inspired’ them to take control of their finances

It is a system that involves starting from scratch each time, versus beginning with the previous period’s budget and changing it as needed. 

Her last hack saw her still indulging in some of the things she loved while remaining on budget and working to pay off her debt.

‘Number four, I did not cut out all extra spending. Instead, I just cut out the spending that I didn’t really care about, that way I could still spend money on the those things that I loved like iced coffee,’ she explained.

Viewers flooded her comments section with words of praise, noting that her story had ‘inspired’ them to take control of their finances. 

‘This is so inspiring! I’m in a similar bracket trying to pay all mine in a year,’ one user said.

Another person added: ‘Love it! My husband and I are trying to pay off a credit card with 21 per cent interest. [We] did a balance transfer to a card with zero interest for 18 months.’ 

‘I have $20,000 credit card debt and have been thinking about getting a personal loan,’ someone else wrote.