Tackling his money troubles head on helped Sammie Ellard-King clear £24,000 worth of debt in just 19 months.
The 33-year-old has transformed his financial well-being, going from being in the red to economic success in just a few years.
Sammie was 24 when he began his journey out of debt - fast forward nine years, and now he has a growing portfolio of businesses.
Sammie, who lives in Hampshire with her partner Charlotte, recalls how he was "never taught the value" of money when he was younger.
"This is something I’ve had to learn myself the hard way," he said.
"I’ve always had an entrepreneurial spirit and have been successful in business over the years, but my parents spent everything they earned, and this was installed in me.
"It started in my first year at university, as soon as I was old enough to get credit."
When he joined Southampton University aged 18, Sammie opened a £2,000 student overdraft which was “maxed out within only a few weeks.”
From then on his debt spiralled for seven years, up to £24,000.
After graduating in 2010, Sammie stayed in Southampton for 18 months, working as a nightclub promoter.
He also had his own events business called On a Level that he ran in the city, but once his business partner returned home, Sammie moved to St Albans, hoping to find events and marketing jobs in London.
Sammie says that the experience of being so much in debt was hugely embarrassing.
He had successful friends who had their own businesses or were already investing their money, so it wasn’t something he was open about, even with his family.
Things changed when Sammie travelled to Vietnam with friends and paid for the entire trip on a credit card.
A good friend of his who had been successful in business since his early 20s asked Sammie a question which he says changed his life forever.
He asked: “When do you want to retire, and how much do you think you’ll need?”
Sammie recalls: “My friend and I worked out that I’d need around £500,000, and it was only then that I poured out to him about my £24,000 worth of debt.
“This £500,000 number stuck with me after we returned home, and I realised I needed to change my relationship with money if I had any chance of a comfortable retirement.”
To start his journey of getting out of debt Sammie says he went deep into an audible course from JD Roth called: How to achieve financial independence and retire early.
He found the story “resonated deeply with me as he had similar debt levels and went onto become a successful entrepreneur travelling the world, telling his story.”
Since then Sammie has taught himself how to successfully invest in stocks, property and businesses and has built up a growing portfolio of businesses and property of his own.
These include a personal finance website, two websites in the food and pets sector, which a team runs for him, director of a hospitality business operating three venues in London.
He is a joint property owner with his partner and is in the process of adding a second property on a buy-to-let mortgage.
His holdings include blue chip stocks in sectors such as software, electric vehicles and green energy.
He continues to listen to podcasts on Audible so that he can continue to learn while he commutes into London.
With a target of getting out of debt in 24 months, Sammie achieved his aim in just 19 months, using several key techniques to clear the debt.
Sammie used the “debt snowball effect”, where you target the smallest debt with the highest interest and pay that off first.
He advises that this is highly effective and provides the fastest results, lowering interest payments to get you out of debt a lot more quickly.
He targeted his high-interest credit card first, which had an £8,000 debit, where interest payments were several hundred pounds per month.
Sammie transferred his credit card debt onto interest-free credit cards.
Although he recommends this, he warns: “It’s very important to check how long the interest-free balance transfer is for.
“They differ per provider and if you go over the timeframe you could end up with another high interest payment. If you’re unsure then speak with one of their advisors on the phone.”
It was important for Sammie to create a comprehensive budget, showing all the essential outgoings and income, to keep track of what was working and to stay motivated.
He advises using one of the many free budgeting apps to help to do this.
They all offer something different, so check out a few to see which is the right one for you.
He recommends then lowering non-essential purchases such as little-used TV subscriptions, morning coffees, nights out and expensive lunches.
This will help lower your outgoing by varying amounts, depending on your expenditure.
But it’s not all about saving money. Sammie encourages people to “Increase your income through side hustles or your main place of work - use the extra money to pay the debt down faster.”
He still has a side hustle that he continues to this day, including buying and selling trainers.
Having set up alerts for major releases and apps to notify him of exclusive “drops”, he can then sell products on.
"You can buy some of these trainers, for example, Jordan basketball trainers or Adidas Yeezys at retail price, and due to them having only a handful available each drop, they often double or in some cases triple in price via 2nd hand sellers just a few weeks later.
"It takes dedication and regular trips to the post office, but it’s very profitable."
Early last year, Sammie established Up the Gains, a website focussing on topics such as investing, saving and making money online in an easy-to-understand, jargon-free way.
He wanted to provide a platform for others to learn the financial lessons that he never had whilst growing up.
Free debt help
Don't suffer in silence if you're in debt and really don't know where to turn - seek free and professional advice.
You can get advice without paying a penny by speaking to one of the following organisations:
- Citizens Advice (0800 144 8848)
- StepChange (0800 138 1111)
- National Debtline (0808 808 4000)