Scott Nelson, CEO of MoneyNerd, is dedicated, and its website, to helping people who are struggling to pay off heavy debts. The idea to start a financial counseling service and work on debt solutions came after he made a series of bad financial and credit decisions in his 20s. According to Nelson, his priorities during this period of his life were far removed from the idea of ââsaving regularly and making smart financial decisions.
âI certainly wasn’t really thinking of saving. I was happy to spend almost everything I earned, âhe explained, in an exclusive interview with Express.co.uk.
“I actually remember really thinking I could afford to spend all of my income because I thought I could ‘pay it back’ in the future when I earned more.”
Mr. Nelson’s main financial mistake was made through day trading, in particular through contracts for difference (CFDs).
He said: âI was doing fine, but literally a few bad trades meant I lost my entire wallet.
READ MORE: Lloyds Bank Introduces A Way To Stop Contactless Card Fraud
“Looking back, many would say it wasn’t much, but at the time I felt like I had just ruined my life.”
Although very young, Mr Nelson had accumulated around Â£ 40,000 in student loan debt, an overdraft of Â£ 2,000 and a credit bill of Â£ 2,000 after his financial mistake.
On top of that, he decided to take out two loans of Â£ 10,000 after graduating from college, at 10% APR each. The enormity of his personal debt has led him to make a series of drastic changes in his life to improve his personal finances, including finally finding a job.
He explained, âSeeing the money reliably flowing in each month has given me a taste of financial freedom.
DO NOT MISS
âI began to appreciate not only the reliability of income, but also the potential for financial freedom. I knew I had to get out of debt as a first step.
âIn my job, I saw others who were further ahead of me, they had no debt, they had paid for their homes and cars, and most of all, they were relaxed in life. I wanted this.
While many people are anxious to begin their savings journey and get out of debt, Nelson said even small reductions in spending habits can help anyone with money issued.
Mr Nelson said, âI cut my recurring expenses, Netflix, Spotify, Amazon Prime, expensive phone deals, I had them all and they really add up.
âThey were a huge burden on my monthly expenses and I hadn’t even realized how easily they add up. “
In addition to Netflix subscriptions and telephone contracts, the financial expert explained how rising bills can weigh on savers and push them into debt.
Mr Nelson added, âI mentioned recurring expenses, but worse than that is buying things on credit that are not essential.
âCellphones, laptops, televisions, even clothes, really any expensive item. Buying these items on credit is a recipe for disaster and often the thing that quietly drives people into a spiral of debt.
For anyone worried about their growing debts and how they will fix it, Nelson describes what should be done as the best course of action.
âYou are not alone, there are so many organizations and charities that can support you,â he said.
âThe most important thing is to start early. Start today. Contact organizations and charities online and see what help is available.
âIt’s surprising how much help is available if you’re willing to go out and ask. “