How One Woman Used AI To Pay Off 12K Debt
When faced with tens of thousands of dollars in credit card debt, one woman turned to an unconventional financial advisor: OpenAI's ChatGPT. In a remarkable story of modern problem-solving, she managed to clear a huge portion of her debt and fundamentally change her financial habits.
A Lifelong Struggle with Finances
Jennifer Allan, a 35-year-old realtor and content creator, admitted that managing money had been a challenge for most of her life. In a statement to Newsweek, she explained she was never taught financial literacy and had avoided budgeting for years, believing she could simply out-earn her spending issues.
This approach became unsustainable after the birth of her daughter. The emotional stress of a NICU visit and postpartum recovery was compounded by the significant costs of childbirth, which can average over $18,000 according to Forbes. "I shut down emotionally, and I used credit cards to keep our life afloat," Allan confessed. "The debt piled up while I wasn't looking."
Turning to AI for a Solution
Inspired by 30-day debt challenges she saw from influencers online, Allan decided to seek momentum from an unusual source. She tasked ChatGPT with providing a single, manageable money-saving challenge each day. The AI suggested a variety of tasks, from selling old items on Facebook Marketplace and canceling unused subscriptions to searching for valuable rare coins in her spare change—a task that alone netted her $100.
Daily Challenges and Big Wins
The real breakthrough came from two specific suggestions. First, ChatGPT advised her to meticulously review all the financial apps on her phone. This simple audit led her to discover a forgotten brokerage account containing around $10,000 in cash.
Another highly effective challenge was to create a monthly meal plan using only the food already in her pantry. This strategy slashed her grocery bill, saving her an additional $600.
By the end of the 30-day challenge, Allan revealed in a TikTok video on her account (@_jenn.allan) that she had paid off an incredible $12,078.93 of her $23,000 debt. "I'm super, super happy with that," she told her viewers. "I've essentially paid off half of my debt."
More Than a Hack A New Mindset
Allan emphasized that using ChatGPT wasn't about a single "big financial hack." Instead, it was a tool that provided "structure without judgement," helping her build sustainable, positive habits. Now, she is already starting another 30-day challenge to eliminate the remaining balance.
America's Growing Credit Card Debt
Allan's story is a personal victory against a widespread issue. According to data from the Federal Reserve Bank of New York, total credit card debt in the U.S. has reached $1.182 trillion, a 54% increase since 2021.
Here are the states with the highest average credit card debt, according to a Lending Tree study:
- New Jersey: $9,382
- Maryland: $9,252
- Connecticut: $9,201
- Massachusetts: $9,165
- California: $9,096
- Florida: $9,000
- Alaska: $8,914
- District of Columbia: $8,903
- Hawaii: $8,884
- New York: $8,727
