Video: Nicole escapes the debt cycle

Video about getting on top of debt

Video transcript

My name is Nicole. I live with my partner, Garry, and with my cat, Benny.

My financial goal is to pay off my personal loan that I set up a couple of years ago and I got that as a result of consolidating my credit cards. 

I am also in the process to purchasing a property with my partner. And when I have paid off my personal loan, then I will use that extra money to then pay off our home loan. 

I went to the MoneySmart website as a result of a financial course that I did for a weekend. That then showed me those tools I needed, which included the MoneySmart website. That's when I had a look at the calculators for the credit cards. The personal loan repayments worked out the difference between what my minimum monthly repayments were with the credit cards, compared to what it would be with the personal loan. I could see that there were significant savings by doing that. That then motivated me then to research the different lenders. 

Once I was on the website, it was a breath of fresh air! I could really see the light at the end of the tunnel, that I knew that I could do it. I knew that I could get myself out of this financial situation that I was in. I could do something, I could consolidate it and within the next five years I would've been able to pay off that credit card debt. And for me, that was really exciting. 

Some of the things I found really valuable about the MoneySmart website was the budget planner. That really helped me visualise exactly where I was spending. I am a very visual person. Colours make me understand things quite well. So when you put in all the information and you've separated your expenses. So you've got your income, your expenses such as personal loans, credit cards, insurances and the fun stuff. And it did motivate me to reduce my wants spending and then put that into a savings plan. I put that into the savings calculator to show well actually I could be saving a little bit more every month. 

I think it's incredibly important that women do plan for their financial future. The society is changing in our world today and we are all very modern, we stay single for longer, we are very independent. Our careers are a lot better as women now than they were 20 or 30 years ago. As a result, we need to plan for ourselves personally so that we can set ourselves up. 

Yes, I've told friends about the MoneySmart website. First home buyers they don't know where to start with getting a deposit. So tell them to get onto the MoneySmart website. 

I think for women, who have a lot more financial pressures and with society changing, being able to get onto that website and realise you know what, I can do something here. I can get myself out of this situation. And I can plan for my financial future.

I think that's so empowering.

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Last updated: 09 Aug 2016