Couple clear £43,000 debt by painstakingly living on just £1 a day

A couple who painstakingly lived on less than £1 a day managed to clear £43,000 debt. Ricky and Naomi Willis struggled to afford food as they racked up debts on payday loans and credit cards after losing their jobs within months of each other.

The Hull couple now want to use their experience to help others struggling with their finances as the cost of living crisis continues to bite.

Their trouble began when Ricky lost his machine operator job at a printing firm, and the next year, Naomi lost her insurance job. No longer having an income quickly led them to build up £43,000 in payday loan, credit card, and catalogue debt, The Express reports.

Things went from bad to worse for the couple when their car and fridge broke down the same week, taking away all of their remaining savings and adding to their mounting debt pile. Speaking in March 2022, Ricky said: “We knew the repayments would eat up everything, but had no choice. It just kept spiralling from there.”

Concerns reached fever pitch for the family of four when Ricky realised they had less than £1-a-day to survive on. He said: “We drew up a list and feeding our two daughters, Daniella and Chloe, was top, then nappies – as Chloe was still a baby. Us eating came third.”

That night, 44-year-old Ricky went to bed weeping. He said: “I felt like I had let my family down.”

The pathway back to financial stability began for Ricky and Naomi, 39, by closely examining their bank statements to slash all non-essential spending. Research from budget internet firm Plusnet found that the average UK household pays around £1,000 more than they need to a year on bills, including mortgage, energy bills, broadband, TV packages, and car insurance.

Naomi said: “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.”

Ricky and Naomi then set up individual payment plans with creditors, used apps like Freecycle to pick up things for free, sold various belongings, and ate meals as cheaply as possible. Their frugality allowed them to clear all of their debts in just four years.

Ricky launched the Skint Dad blog in 2013 to help others with money troubles and now thousands of people have turned to them for advice on cutting back, especially with living costs still rising for many.

Here are the couple’s 12 top tips for saving money:

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.

Choose the right broadband supplier . “We pay £18.95 a month with Plusnet with no unnecessary bells and whistles,” Ricky says.

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. This makes cheaper cuts of meat delicious and tender, and uses less energy than an oven.

Claim all tax benefits. Website Turn2us.org.uk lets you check you are claiming all state benefits available to you.

Select the right mobile phone provider. You will pay as little as £7 a month on a SIM-only deal, and often keep your old number.

Consider a side hustle. 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 from Plusnet said: “Simple tricks to shop sensibly and avoid complicated offers can be a massive help at times like these.”

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