Unlock the Editor’s Digest for Free: A Dive into Financial Literacy
Inside the world of online media, a fascinating phenomenon is taking place. Megan Archer-Fox, a 34-year-old woman burdened with £40,000 worth of credit card debt, is using her experience to help others through social media. Her candid conversations have not only earned her a dedicated following but have also made her an important part of the Financial Times’ Financial Literacy and Inclusion Campaign (Flic).
Archer-Fox, known on TikTok and Instagram as “That Girl In Debt”, not only shares her personal experiences with her followers, but she also took part in a webinar at the FT’s London office, providing her insight and stories as part of the Flic initiative.
Rising Debt and the Journey to Financial Literacy
Archer-Fox and her partner accumulated their debt through the use of 0% credit cards during their twenties. As she admits, “It felt like free money”. This financial freedom allowed them to enjoy a lavish lifestyle, full of dinners out and holidays. With professional jobs and no children, the couple enjoyed their financial freedom but were ill-prepared for the reality of debt.
When the 0% interest periods ended, they simply transferred the balance to a new credit card, without closing the old ones. Despite using annual bonuses to pay down their debts, their spending habits remained unchanged. After they had children, their debts became unmanageable.
“When I was on maternity leave, the credit card wasn’t being used for fun and holidays, it was being used for the Tesco shop, petrol, and nappies. That’s when it all got a bit too real,” she shared.
Seeking Help and Taking Control
While Archer-Fox and her partner did not seek formal debt advice from independent charities like StepChange or Citizens Advice, she strongly recommends anyone struggling with debt to consider doing so. After assessing their total debt, the couple created a budget for the first time, which allowed them to clear around £600 a month. However, this required a halt in spending on the cards.
During her journey towards becoming debt-free, Archer-Fox discovered that she had spent £2,700 on balance transfer fees and interest costs on just one of her credit cards. This shocking revelation further fuelled her commitment to financial literacy and debt-free living.
Breaking the Taboo Surrounding Debt
As Archer-Fox continues to share her journey online, she’s breaking the taboo and stigma surrounding debt. Her honesty has resonated with people who are struggling with their own debts, with many expressing their relief and gratitude for her openness.
“Being honest about my debts is helping others — and it’s helped me,” she stated.
To watch a recording of the webinar, visit FT.com/event. You can also support the FT’s Financial Literacy & Inclusion Campaign (FT FLIC) as they continue to promote financial literacy and inclusion.
For more information on this story and other insightful articles selected by the Editor of the Financial Times, Roula Khalaf, you can unlock the Editor’s Digest for free Here.
