An actress who made $ 25,000 in credit card debt has revealed how she finally became debt-free (Nell Nakkan in the photo)
An actress and filmmaker who has earned $ 25,000 in credit card debt has revealed how she finally became debt-free and her best tips for achieving your financial goals.
Nell Nakkan, 32, from Sydney, said she first opened a credit card in 2008 when she was 20, and while it started out as a way to feel ‘grown up’ and keep up to date with her finances, she quickly crept in a world of debt.
As of June 2020, Nell paid off her credit card debt after a year and a half of committed savings.
Since then, she’s also cut her credit card and vows to get even better with her savings – by building up her retirement account, investing and building her emergency account.
Nell Nakkan (pictured), 32, from Sydney, said she first opened a credit card in 2008 when she was 20, and although it started as a way to feel ‘grown up’ and keep up to date with her finances , quickly entered a world of debt
Speaking to Sydney-based financial advisor Canna Campbell, Nell explained that she didn’t think much about getting a credit card in 2008, but added vacation, shopping, and all sorts of extras quickly.
“It felt a bit like my money, but of course I never really paid it off, so it was just over,” said Nell Canna.
“I never paid attention to interest, so I never knew how much I owed; I just paid the bills. ‘
When she reached her limit on one credit card, the 32-year-old explained that she was getting a second credit card.
At one point, she even borrowed some money from an ex-boyfriend to pay off some of her debt, which she eventually paid back after making her money.
“Although I subtly knew I had $ 25,000 in debt, I never worried too much and living in the world of ignorance is bliss,” she said.
‘I sometimes get a stroke of luck in my work and I can earn that grade pretty quickly. But the disadvantage is that sometimes I don’t earn much for a long time. ‘
The turning point for Nell (pictured) came last January when she said she had paid off her debt for a few months and decided to check her progress. She saw that she had only paid interest
The turning point for Nell came last January when she said she had paid off her debt for a few months and decided to keep up with her progress.
I realized that much of what I paid off was not the loan, but the interest
“I checked the personal loan I took out and realized that much of what I paid off was not the loan, but the interest,” she said.
After checking how much interest she paid on a $ 15,000 loan, Nell said she calculated it was about $ 6,000.
“I kept thinking about what $ 6000 could have bought me – a vacation, maybe even a car. I felt terrible. I just thought, I’ll never get out of here, something has to change, ”said Nell.
Nell (photo) shared her top tips for paying off debt, including setting goals, writing down and setting realistic deadlines to meet them
What Are Nell’s Debt Repayment Tips?
* Unsubscribe and follow all things that don’t inspire you in your goals. Follow new accounts on the debt-free community’s Instagram so you constantly fill your feed with positive posts that reinforce your goals.
* Set goals, write them down and set deadlines to reach them. If something with a specific date is written down, you’re much more likely to make it.
* Take extra work and extra fuss to make sure you do everything you can to pay your debts.
* Every time you get a windfall – be it a tax return or a birthday present – use it to pay off debt.
* Get used to saying no to things you can’t afford. This is getting easier.
* Make a detailed budget, live off as little of your salary as possible and pay the rest.
* Always keep track of your progress so that you are responsible.
* Do not reject small amounts of cash. Even a little overbooking will help you achieve your goal.
* Get an emergency account and make it your safety net. Credit cards are never a safety net.
Source: Nell Nakkan
The first thing she said she did to get her finances under control was that Google paid off credit card debt, as well as useful money tips she could use in her daily life.
“I found Canna’s YouTube channel and loved it a lot considering all the tips,” said Nell.
“I felt I had to look at things a lot to stay motivated. I then wrote down and dated some goals when I wanted to achieve them. ‘
While Nell said her goals were a little “pie in the air,” she also said it helped keep her on track and responsible.
She sent the goals to herself in an email and also sent them to her ex-boyfriend who owed her money so he knew she was also committed.
The 32-year-old lived on half of her wages and put the other 50 percent into paying off her debts (stock image)
In addition, the 32-year-old said she found out she could live on half of her wages while spending the other 50 percent paying off her debts.
“I thought if I could save fifty percent of my wages every two weeks, I could eventually pay off the debt,” she said.
Finally, Nell said she kept track of all her expenses and gave herself only the smallest buffer of extra money – saying no to social obligations and any windfall she got by working to pay her debt.
“I also took extra hours at work and over the weekend, and all of that was refunded,” she added.
“I hadn’t realized I could do this extra work as well as my 9-5, but that really made the debt tick.”
Nell (pictured) paid off her $ 25,000 debt in early June this year and said she even went to the bank where she saw the cashier cutting her card to pieces
Nell managed to pay off her $ 25,000 debt in early June this year, and said she even went to the bank, where she watched the cashier cut her card.
“Having a credit card was a safety net. I was afraid not to have a backup, but now I know that I can get backup by depositing more and more money in my emergency bank account so that I always have cash savings, “she said.
“My next financial goal is to get that to $ 5,000, build my retirement and start investing.”
Speaking about her advice for others looking to pay off their debt for good, Nell said it’s all about setting goals, writing down deadlines and setting deadlines.
“I am now excited to look at Instagram and see what other people paid and how they did it and get more tips,” she concluded.