I live on minimum wage but racked up £15k credit card debt with flash trips – here’s how I paid it off as a single mum
A SINGLE mum who had racked up £15,000 of credit card debt by the age of 22 has revealed the steps she took to pay it off in less than two years.
Alex Wren, 25, got her first credit card aged 19 – in the hope it would help build up her credit score, and get a mortgage in the future.
But before she knew it she was developing bad habits and using most of her up to £3,000 limit to go on birthday and Christmas trips.
By aged 22 she had racked up £15k in debt.
She was meeting her minimum payments of £30 to £50 a month on each of her five credit cards until she fell pregnant with her son, now two, in 2022 and she felt there was “no way out”.
In January 2023, Alex decided to take out an Individual Voluntary Arrangement (IVA) – an agreement with your creditors to pay all or part of your debt – paying just £100 a month to start with.
As her credit cards were maxed out and she was no longer able to take out any credit she was only able to spend what she had.
Then after sharing her council home renovation on social media in April 2024 she started making an income off content creation and was able to make and pay back the £15,000 in six months.
Now she wants to raise awareness to stop the “shame” around debt.
Alex, a full-time content creator, who lives near Sheffield, South Yorkshire, said: “Everything suddenly began to rack up.
“I felt like I was throwing money into an abyss.”
Alex first took out credit so she could buy a MacBook when she was 18 – and was told she was viable to do it.
She took out a credit card aged 19 with “good intentions”.
She said: “When you’re young you forget that this is your money to spend.
“I was spending on birthday trips and Christmas trips.
“There was a feeling like you need to do something for special occasions.
I was using birthdays as an excuse or a reason to spend
Alex Wren
“I was earning minimum wage – how else would I be able to enjoy nice things?
“I would go on two nights away trips for my birthday. I’d go out to a city and by the time you’ve gone out for food and drink it quickly racks up. I was spending £600 to £700 on a weekend away.
“I was using birthdays as an excuse or a reason to spend.”
Alex started to use her credit card more and more but would always think it was “next pay day’s problem”.
By the time she graduated from university she had maxed out her £3k overdraft and was in nearly £15k of debt in total – spread across five credit cards.
She hadn’t realised how much debt she had racked up until she fell pregnant with her son.
She suddenly feared she wouldn’t be able to make the minimum payments while on maternity leave.
Alex said: “I was working 50 hour weeks between two jobs to be prepared for the baby.
“I was going on maternity leave and the basic pay is £600 a month.
“I wouldn’t be able to make the minimum payments on that.”
Alex discovered she could take out an IVA – an agreement with your creditors to pay all or part of your debts.
How to shift your credit card debt quickly
By James Flanders, Consumer Reporter
UK Finance reports that we spend a whopping £2 billion a month using our credit cards.
While that little strip of plastic makes everyday spending easy peasy, it comes at a huge cost.
According to The Money Charity, the average credit card debt sits at £2,485 per household or £1,312 per adult.
And if you’re stuck on a credit card with a high APR and only making the minimum repayments, you could be forking out hundreds of pounds extra in interest charges.
For example, if you owe £1,312 on your credit card and are charged 24.8% APR.
If you don’t make any more transactions and pay £100 a month in repayments, you will pay off the card by September 2025 but at £207 in interest.
However, by hunting around for a better deal elsewhere and switching to a balance transfer credit card with a lengthy interest-free period, you can save yourself £162.
If the same person was accepted for a 28-month-long zero-interest credit card with a 3.4% balance transfer fee and made the same £100 repayments each month.
They would pay off the debt sooner, in July 2025, and only fork out £45 towards the 3.4% balance transfer fee.
Before taking out a new credit card or increasing the amount you borrow, it’s vital to consider the consequences.
You should only borrow money if you can afford to pay it back.
It’s always vital to ask yourself if you need to borrow before committing to a new credit card, personal loan or overdraft.
If you use a credit card, I’d recommend that you always pay off your balance in full at the end of each statement period.
Lenders have a responsibility to help customers who are in debt.
If you’re in a debt crisis, your first point of call should be your lender.
They might help you out by offering you a reduced interest rate or a temporary payment holiday – so check in with your lender if you’re struggling.
Alex said: “They went through all my income and expenditure and looked at how much I had left.
“When we did this it was £100.
“If you’ve had a raise in wage they will edit how much you’re paying back.”
Alex took out her IVA in January 2023 but when she started her social media pages in April 2024 – sharing her budget home renovation – her income skyrocketed.
She was able to pay back her debts in October 2024 in full.
But due to taking out the IVA Alex’s credit score continues to be impacted – and will be for another four years – meaning she’ll struggle to get a mortgage before then.
Debt shouldn’t come with shame – it’s nothing to be embarrassed about
Alex Wren
Alex said: “I have got four years for buying a house and for saving and getting my habits right.”
She now budgets £2,000 a month for her total outgoings and will set aside £50 for birthday and Christmas, £150 for a holiday fund and puts money into a pension pot.
Alex has since discovered she still has £6,000 of debt that was not included in her IVA – £5,000 to the DWP for overpayments and £1,000 to a utility provider.
But Alex is able to pay these off monthly – without interest.
Now she pays herself £50k-a-year and is determined to invest in her future.
She said: “I want to retire at 50 – that’s my dream.
“I’m living within my means.”
Alex just celebrated her birthday and spent it by taking her son to the beach for free and allocating £150 for holiday clothes.
She said: “It’s very different to Alex four years ago – who would have said screw it.”
She now wants to help others – and encourages them to go to citizens advice to find the best way of paying the debt back for them.
She said: “Don’t bury your head in the sand with it.
“Debt shouldn’t come with shame – it’s nothing to be embarrassed about.”