There is a TikTok trend sweeping the nation: Pay Off Debt. Everyday people are making videos and getting their debts paid. Here's how.

TikTok’s Pay Off Debt Trend is Booming. Here’s how to join in!

There is currently a TikTok trend taking over called Pay Off Debt. If you haven’t seen any of the videos yet, the concept is really simple. Thanks to TikTok’s updated methods for paying content creators, people can potentially make large sums of money simply by getting their videos watched. Gone are the days that you’d need to get a part time job, or pull money from your 401K. Instead, just create a 61 second video sharing about your life, your debt, and let the cash come rolling in. Since the very beginning TikTok has been a place that centers around community, connection, and giving. This isn’t just a group of lazy people looking for handouts, these are honest, hard working people who are struggling. Instead of asking for your cash, they’re only asking for about 60 seconds of your time. Here’s how the Pay Off Debt trend is taking off, how you can join in, and methods for paying off debt for anyone who doesn’t know how!

What is TikTok’s Pay Off Debt Trend?

For the last few days, I have taken a moment to pause every time I see someone who is partaking in the Pay Off Debt trend. I have seen videos of women battling cancer, people struggling to pay their medical bills, college grads struggling with student loans, and even people willing to sing you a song if you’ll just tune in and drop a comment.

As I’ve watched more and more of these videos I can help but feel a twinge of sadness…or is it annoyance? No, my annoyance isn’t with the people partaking in the Pay Off Debt trend. The frustration comes in when I realize just how many people are struggling to pay their debt. While a lot of people might like to brush this off as people not trying hard enough, the truth is, financial struggles are not a rare thing these days.

In order to partake in the trend and help pay off people’s debt, all you have to do is find the Pay Off Debt videos on TikTok, and then be sure to do the following:

  • Let the video play past 60 seconds
  • Like the video as quickly as possible
  • Drop a comment
  • Bonus points if your comment is over 5 words, and if you share or save the video

I know it can sound like a lot, but considering how much time is wasted on social media in a day, I think it’s safe to say most of us have a few minutes to spare. Read: How I Take a Break From Social Media as an Influencer.

There is a TikTok trend sweeping the nation: Pay Off Debt. Everyday people are making videos and getting their debts paid. Here's how.

Ideas for taking your Pay Off Debt even further

While I won’t be partaking in the Pay Off Debt trend on TikTok, what I will do to assist the trend beyond watching videos. I wanted to take a moment to share some of the financial tools we have applied to our lives that have helped us improve our relationship with money. The methods I’m going to share also helped us pay off over $20,000 of debt back in 2019.

During our debt payoff, I attempted to restrain, restrain, restrain, and put every dollar toward debt believing that this was the only way our family would ever get ahead. Doing this made debt payoff even harder, because I was no longer allowing myself any small amounts of joyful spending. That’s why I want to start out by offering some advice on how to create balance with fun spending and debt payoff.

Create a fun fund

More than anything, in order to keep yourself from going into financial starvation mode, get yourself a Fun Fund. I personally started designating a set amount of money to put into a Fun Fund every single month, so I didn’t have to feel shame or guilt around buying myself a latte or a cute new top.

You can do this by taking out a set amount of cash, creating a whole new checking account, or doing what I do which is getting yourself a Cash App debit card.

How to use a Cash App debit card for a Fun Fund

The way I use Cash App to control my spending when it comes to fun splurges is by choosing an amount to transfer to the app every single month. This way, I can see how much money I have available to spend just by opening the Cash App on my phone.

Each time I make a purchase using my Cash App debit card, I get a text alert on my phone letting me know how much I spent. This has been so helpful in making sure I track and control my spending. Plus, when you give yourself permission to spend, you just might be surprised at how selective you become.

For example, if you have an array of 100 kinds of cupcakes, but you’re only allowed one, you’ll probably take your time, read the descriptions, check the ingredients and really make sure you’re selecting a good cupcake before taking a bite. That’s kind of how a Fun Fund works too. When you’ve given yourself permission to spend a designated amount of money, you get a little pickier about what you spend it on. Click here to read more about how to use Cash App for budgeting.

*Also, you can customize your Cash App debit card. This is an actual picture of what mine looks like. I get compliments on it all the time.

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Look at your money

This might seem to go without saying, but something I avoided doing for a very long time was actually looking at my money. When you are constantly stressed about money, opening your bank statements can cause a sinking feeling in the pit of your stomach. It’s not a good time.

Having found ourselves having a tough time with finances these days, I’ve had to dive back into budgeting just like I did years ago. It’s not fun, but when you get hands on with money, it can make you feel more capable and allows you to start finding solutions.

When you start looking at your finances you might:

  • Start seeing pointless spending you make consistently every money
  • Find new ways to reduce spending in certain areas
  • Get good at hacking your budget to get more money in the places that matter

For the last few years, I have done our budget with an online budgeting system, however, last month I bought a budget notebook and am going back to old school pencil and paper — and it has made a huge difference. (Might be an ADHD thing.) 

Save if you can

Nothing sets a person or family back more than when an emergency hits. Even though I am guilty of being that person who insisted I couldn’t save money, the truth is, if I would have applied the previous steps, I would have been able to save a lot more a lot easier.

After going through your budget, see if you can set aside even $100 per month. If so, get yourself a high yield savings account that pays you interest when you save money. To avoid the temptation of taking money out of your savings, you can increase your changes of saving more by opening an account that is separate for your current bank. For example my savings account through my current ban would barely pay me any money in interest and I could easily transfer the funds if I spent too much at Target one day.

Opening a saving account separate from your checking slows your role when it comes to removing funds, and can help you increase the amount of money you save when you set up automatic monthly contributions. CIT Bank has a great savings account that meets both of these criteria. 

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There is a TikTok trend sweeping the nation: Pay Off Debt. Everyday people are making videos and getting their debts paid. Here's how.

Find a low key side hustle

One of the most annoying things in the world is being a full time employee and having to find a part time job. However, part time job doesn’t have to be the time requirement we often think it has to be.

For example, if you work from home, you could take up a side hustle as being a dog sitter. This was something I did when my kids were young because I was already home all day with my kids and our two dogs. Dog sitting was actually pretty lucrative and I was often able to make around $500 extra cash each month. Read: How to Set Up a Successful Dog Sitting Side Hustle.

Another thing I did was start a blog, but the reality is, this isn’t necessarily a quick way to make money. Don’t recommend. However, I encourage you to get creative in finding ways to make a little extra cash just by doing what you already do — like scrolling TikTok. Here’s how I made $1,000 in one month selling my first ever ebook on TikTok.

Methods for paying back less debt

When our family started the Debt Snowball method, no one mentioned to us that a good idea to help save money and speed up the debt payoff process would be to get a lower interest rate. Especially on things like credit cards. (Ours was at a whopping 25% interest!)

Learning how to cut costs, including negotiating credit card interest rates is the second step in the ICE Debt Repayment Method and I know would have helped our family pay off debt even faster! Even though we didn’t have that knowledge at our disposal at the time, we still managed to pay back less money in interest by taking out a personal loan that had a lower interest rate.

How to pay back less in interest:

  1. Negotiating with credit card companies
  2. Getting a lower interest rate loan Payoff Loans are designed for this
  3. Transfer debt to a 0% interest credit card and work to pay it off (keep in mind you will have to pay this off within the promotional period, or you will be hit with major interest charges!)

If you want more guidance on how to negotiate your credit card interest or find balance transfer credit cards, you can learn more with the ICE Debt Repayment Method.

Negotiating Credit Card Interest

If you are also fighting a high interest rate, a good idea would be to look up online scripts to help negotiate interest rates on some of your credit cards.

Negotiations are definitely a smart tactic, but unfortunately they don’t always work. That’s why it can be good to have a backup plan.

Getting a Lower Interest Loan

If you have a significant amount of debt to pay off like we did, (we had a $12K credit card bill on top of car loans, student loans etc), it might be worth looking into taking out a loan with a lower interest rate or consolidation. Options like the Payoff Loan are designed to help you pay off high interest credit cards so you can save money and pay back less!

By taking out a loan to pay off our credit card we were able to go from a 25% interest rate to an 11%! That was a huge load of my mind because it felt like we were actually able to make a dent in our debt payoff rather than just paying the interest. Check your debt payoff interest rate.

Using a 0% Interest Credit Card Balance Transfer

A common promotion that credit card companies run is offering 0% interest for an extended period of time (usually a year). While running this promotion, they will often allow balance transfers from another credit card! This means you could turn a high interest card (think 25%) to 0%!

This can be an amazing way to completely eliminate the interest you are paying on your credit card debt, however, there is one big catch you need to be aware of.

If you choose to transfer your credit card debt to a 0% interest credit card, you will want to make sure you can pay off what you owe in the allotted promotional period. For example, if you have 1 year to pay off $12,000, make sure you can commit to paying $1,000 per month! If you cannot commit to this, and you go past the promotional period, you can be slapped with interest charges! To better understand this method and how to go about it, be sure to follow the ICE Debt Repayment Method‘s teachings.

There is a TikTok trend sweeping the nation: Pay Off Debt. Everyday people are making videos and getting their debts paid. Here's how.

Choose a debt payoff strategy

If you perhaps aren’t able to fully pay off your debt with a single TikTok Pay Off Debt post, another great option is to start choose a debt payoff strategy that works for you. I’ll go over two debt payoff strategies that I have used and stand by:

  • Debt Snowball
  • ICE Debt Repayment

Using the Debt Snowball helped my family used to pay off $6,000 of debt in just 6 months (while implementing all the other strategies I mentioned above. However, the ICE debt payoff strategy has been shown to help pay off debt faster.

How does the Debt Snowball work?

Ok, that was a lot of debt payoff pre-game info, now it’s time to dive into the rules of the Debt Snowball if you’re not familiar with them yet.

How the Debt Snowball works.
  1. Create an extra $200 per month in your budget
  2. Apply that extra $200 to your smallest debt on top of your current minimum payment
  3. Pay off your smallest debt balance
  4. Take entire payment from your smallest debt and begin applying it to the next greatest

Debt Snowball vs. ICE Debt Repayment Method

The main difference between Dave Ramsey’s debt payoff method and the ICE Debt Repayment Method is that the Debt Snowball focuses on paying off the smallest debts first while the ICE Debt Plan focuses on paying off high interest debt first.

You can implement this same $200 strategy for your debts using either method. Just choose a debt and get started.

Good luck. God speed.

Anywho…I hope some of these ideas helped, or gave you a new way of looking at how you manage your money. Truly, these few things (along with some good money books) have been huge in helping me shift the way I see and manage money on a daily basis.

Good luck as you continue working to pay off your debt, and if I see you around, you’d better believe I will watch, like, comment, and share!

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There is a TikTok trend sweeping the nation: Pay Off Debt. Everyday people are making videos and getting their debts paid. Here's how.

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