The Official 2020 Debt Smackdown
Welcome to the Official* 2020 Debt Smackdown!
Happy new year everyone!
That's right, we're back for 2020. Last year we saw about 310 of us brutally destroy about $3 million in debt. Wow. Right. Massive achievement. Can anyone say 'YNAB blog post'?
But there are plenty of us with still some debt to go. And as much as I hate debt, I do love a good spreadsheet, so here we go. A few of us have come into 2020 with some debt remaining. Maybe over spent at Christmas. Either way, this challenge is open to anyone who wants to eradicate that debt from your life.
So what's this about? If you are holding onto some debt as you enter 2020 - and would like to get rid of it - this challenge is for you.
To the participants from last year, welcome back! For some of us, our total debts are too large to smack down completely in one calendar year, so if you're here from last year, congratulations on your progress and let's keep on doing this! In 2019, we collectively paid down over $2,800,000 in debt! An increase of OVER $1,300,000 than in 2018!
For all new participants, we are happy to have you join in this year! New blood is always welcome. Let's all motivate each other to pay off those debts and continue moving forward to financial freedom.
How it works:
1. List the amount of total debt that you owe.
This step is to give you an awareness of your current debt situation. Feel free to share, this forum is a safe and nonjudgmental place. You can also decide to keep this information private, you don't have to post your total here if you are not comfortable doing so.
2. Post in this thread the total amount of debt you would like to pay off during the 2020 calendar year. (This part is required.)
Feel free to break down the amounts by credit card/type of debt. Also, if you have a specific plan or some ideas on how you plan to pay down the debt, you can post that too. Maybe your plan will spark some ideas for others on how to tackle their own debts!
3. Check in monthly in this thread and report on how your debt smackdown is going. (This part is required.)
4. Post monthly on the 2020 Google Sheet to track your progress. (This part is required.)
Claim a line on the spreadsheet, and post your total debt to be paid off, and the monthly amount that you send off towards it. Some people track their total payments and don't account for interest, some people account for principal only. The method you choose is up to you!
If you come across this challenge later in the year, no worries, you can still jump right in. Just put zeroes in the months where you had not joined the challenge yet, and start in the month you join in.
Last year, we collectively paid off $2,800,000. Let's smash that number again in 2020!
Please let me know any issues with the sheet - sometimes things are a bit wonky when making new ones!
*Official in the sense that there's a spreadsheet. Not official in the sense that it's made by YNAB. I'm just following naming conventions here :)
Hello YNABers! I'm excited to officially participate in the 2020 Debt Smackdown. Last year I paid off $37,300 in debt, which is wonderful, but I know I can do better. We still have significant non-mortgage debt, currently totaling $111,528.31. I have been using YNAB for almost 3 years now and have had to make lots of "fresh starts" over the years.
2020 Big Goals:
1. NO FRESH STARTS
2. Pay off all personal loans and credit cards ($22,200)
3. Pay off one car in total ($27,400)
4. No new debt
5. Break paycheck-to-paycheck cycle
List of Current Debts (Claimed Line 129)
Personal Loan 1-$2300
Personal Loan 2- $3000
Credit Card 1- $4000
Credit Card 2- $12,900
Car Loan 1 - $27,400
Car Loan 2 - $29,700
Student Loan - $32,200
With my aggressive plan to pay off both personal loans and credit cards, plus one car, plus the minimum monthly payments on the remaining debts, the grand total goal for the year is $60,000. This is approximately 53% of our debt load. I use undebit.it and at this rate, we can be debt free by summer 2021, which is my ultimate goal.
Back again. Claimed line 131. Failed miserably last year, so we will try to to go with a more reasonable goal of paying of $50,000 in 2020. Overall unsecured debt is still over $82,000, but we won't dwell...sigh. Just keep swimming! Happy New Year!
Aiming for a $10K emergency fund by December as well as to pay off the following debts:
Payoff Goals: AMEX $15,000
Capital One $15,000
Bank of America $3500
Old Navy - $7800
Home Depot $1400
Here we go:
Amazon Chase Visa: $9,904.70
Citi: $1,664.94 (although I have approximately $500 to be refunded due to returns)
1. No new credit card debt - at all, not even on the float.
2. Stick to the budget - I don't want to play whack-a-mole just because I can't say no to impulses.
I met 98% of my goal last year so that was great!! This year I hope to reach it 100%.
My debt is as follows
My goal is to pay off $15,000 of this debt. The roof should be completely gone. It will be tough because I have to pay cash for some car repairs but I love having this spreadsheet to push me!
I wish the Debt Bootcamp was in the Forums for confidentiality purposes. Anyways, for now, what is everybody doing to attack their debt this year? Suggestions, strategies, cost-savings ideas?
- Cut the fixed expenses that I could: cancelled mortgage insurance (have enough life), cleaning lady, switched cell phone providers,
- Cut food: groceries goal $100 pp to a realistic $350 for Jan, $0 takeout, $200 eating out
- Not buying anything I don't need/want. Really no shopping at all.
- Price match everything
- Driving less to save gas. To/fro work with errands en route only
- Aiming for simplicity in my life & ignoring the Joneses :)
This is my first time venturing into paying off ALL of my debt. I owe $40,133.84 including student loans, one small line of credit, and several credit cards. I'll be doing the snowball method to pay this off and hope to finish in 2022. My budget is starting low since I was recently married and haven't a month where I can actually stick to a budget in over a year. I hope to be adjusting this budget even higher than the $25 a month I have already planned.
I hope to stick to my payoff plan and pay off at least $8k of debt this year.
I didn't finish my 2019 goal; in fact, I added debt to my credit card toward the end of the year.
So I am here. I cheated a bit this year and I withdrew from one of our investment accounts so my largest credit card will be paid off at the end of this month. I've never paid interest on it (thanks credit card float), but I wasn't able to float enough to maintain paying the full statement balance and I was going to start paying interest to the tune of $50 per month and I couldn't stomach it. So I made the transfer, and while I have some regret, I am feeling pretty positive about our decisions moving forward.
Our goal for 2020 is to pay off all of our credit cards. No more floating. And to pay off my husband's car completely. And to actually use YNAB how we're supposed to and say no when the budget says no. Husb seems to be on board, but we'll see how he likes it when I actually start saying no to things. I usually just go along with it and sweep it under the rug, but I guess that's how we ended up with $6000 in credit card float. How the heck do you float $6000 month after month!? It wasn't always that big, and then it got out of control.
I've had 2 no spend days in a row. Technically, I spent like $2 each day, but I used unbudgeted cash which doesn't exist in YNAB, and I used a gift card I got for Christmas. I get my morning coffee at Panera and it's a habit I need to break, but at least I've stopped getting the breakfast sandwiches there (I gave that up about 3 weeks ago, thank goodness).
I have a check from USAA for $24.50 that is void because I didn't deposit it in time (facepalm emoji), so I'm going to message them today to see if they'll reissue it. Ugh. How annoying.
Maybe I'll go start a journal.
Line 144 claimed!
The past year has been a little out of control debt wise. I have a total of $24,237 worth of debt.
-9k in Student Loans
-8k for a car loan
-1.5k for personal loans
-6k for CC's
My goal for the year is to pay off all of my Credit card debt and continue paying minimum payments on my student loans and car loan. So around $10,000 for 2020! Working on a limited income so this should be tough but hopefully worth it!
I have approximately £9k of debt
1.5k in overdraft
3.k in CC
500 in personal loan
and 3.5k in car loans
I am planning on paying £7.2k off this year using the debt snowball method. This is worked out using my current salary but I am currently a trainee undergoing exams that warrant payrises so hopefully I will get a bit extra to go towards it!
Good luck everyone
Hello all, this year, at least the start of it, I'm keeping it simple. I cleared all remaining overflow off my cc and now have only a balance transfer cc that I am focusing on. If I clear it quickly, I'll add my LOC or the additional funds I need to pay for my medical. However, right now I want to just focus on this one debt.
$13, 765.95 pay by Sept so no interest is earned on the balance transfer.
So my plan is to pay out about 2k a month, as some months this will not be possible due to insurance due in March and other payments. I think I can work it that I have it paid still by Sept. We'll see how it goes, hopefully, I'm lucky with work and can earn enough to save for my other medical debt. Will keep you updated.
Good luck in your 2020 journey!
I'm here to say a quick hello and that I'm interested in killing off $7500 of debt this year! It's a mixture of credit card and student debt, and year after year I've found the savings challenge and debt pay-down challenge a good tool to keep me accountable and keep my mind in the right spot.
Good luck to all, and happy 2020!
First update. My investment withdrawal came through and it’s my payday, so card #1 is paid off! We’re done credit card floating this card! Thank. Goodness. I’m going to pay off every transaction I make as I go for the next month to spur a couple of habits.
1) if I know I’m paying it off immediately, I absolutely can’t spend money that I don’t have.
2) there’s no way I’ll pay interest on it in case I got caught in a month of interest bearing because I didn’t pay the full statement balance on time.
Anyway: 2 cards on the float to go, and one will be done next paycheck and the next will be done February 7th. Wooooo. Then on to paying off the car.
I read somewhere if you can't make more money, then focus on education. That is what I have been doing with all the podcasts I listen to commuting, forums & blogs, and library books. Today's library visit to read over the next few weeks that have come highly recommended:
- Living Debt Free: The no-shame, no-blame guide to getting rid of your debt, Shannon Lee Simmons
- Meet the Frugalwoods: Achieving Financial Independence Through Simple Living, Elizabeth Willard Thames
- Debt Free for Life: The Finish Rich Plan for Financial Freedom, David Bach
- The Wealthy Barber: The Common Sense Guide to Successful Financial Planning, David Chilton
- Wealthing like Rabbits: An Original Introduction to Personal Finance, Robert R. Brown
- The Richest Man in Babylon (Revised & Updated for 21st Century), George S. Clason
Although it is a little late for me to reach financial independence before retirement, my goals are to become debt-free in 3 years (LOC, car lease) then attack my mortgage so it's paid before I retire (10 years). A lot of financial materials / planning focus on a number you need for retirement. What you really need from what I've learned is to rein in your spending and live on less. Then your money will go far. :)
Line ID: 148
I did pretty well in 2019 and paid off 100.17%, BUT I took on almost equally that amount of debt. So I'm lowering my amount this year to try to be more realistic - it is 1/3 of my total debt due minus mortgage. I also am starting this year with $1,000 EF which I haven't had in a long time (yay!) and a new job, which will be bringing in $11k/ year more!
2020 payoff goal: $6,051.11.
Best wishes friends!
Claimed line 150! Making 2020 a year of drastic change and challenging myself to pay all of my debt by the end of the year - all 29,848.40 of it. Already made some hard but necessary changes that allowed me to start off with momentum.
Breakdown of debt:
Student Loans: $20,057.27
Personal Loans: $9,791.13
I'm working on tackling down the student debt first to avoid paying the insane amount of interest that I have been in the past. I was able to bring it down $8,355.01 so far this month by down grading my car (shed a few tears in the process), tuition reimbursement for the last semester, and adjusting my budget by cutting out spending in areas that I will have to sacrifice until I'm debt free (subscriptions, shopping, etc). It's going to be a year of grit and determination, but I cannot wait for the day that I can say I'm debt free!! And finally be able to build up my savings.
Sending positive vibes to everyone!!
Claimed line 153! Really want to clear all of my consumer debt this year and free up over £300 of monthly payments. Aiming to clear over £8500 which might be a bit ambitious hence the reason to commit to it on here and gain that extra motivation!
Been using YNAB for well over 5 years but first time doing one of these challenges so looking forward to reporting my progress! Wish me luck!
Personal loan 1: £3544.12
Interest rate: 2.76%
Personal loan 2: £5012.69
Interest rate: 3.6%
Alright, here's January!
Current bal payments total balance
Visa - $1420.60 $1420.60
MC - $717.46 $61.00 $656.46
Total - $2138.06 $2077.06
Not really much progress, but I'm waiting on the tax returns to come in, and I have to sort out the financial tracking to see how much I owe myself from the business, and then once that money starts flowing better I can begin to pay myself back for that, so here's to knocking this out this year!