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 :)
I'm not going to lie, today was a lot harder than I expected. Does anyone else struggle with clicking the submit button?
The good: I paid off one whole student loan, in full... The bad: That category is a lot emptier now..
The good: Those funds were budgeted for and did their job.. The bad: It was a lot of money.
The good: That payment brought my total student loan balance under $40k!
The bad: There's still almost $40k to go 😭
Despite the underlying want to cry, the first step has been made - spreadsheet updated!
$3,000 down, $17,000 left to go - parting is such sweet sorrow.
So I forgot that I had put some of the Christmas money that I received towards the debt for this month since I was mentally applying it to the stone that we got for the driveway, which was purchased in December, but the checks weren't deposited until January. So I've paid off more than I thought I had, which is nice to know!
So here's the adjustment:
Visa - $1420.60 $250.00 $1170.60
MC - $717.46 $61.00 $656.46
Total - $2138.06 $1827.06
1. List the amount of total debt that you owe. $46,387.65 (credit cards, taxes, auto loan, personal loan)
2. Post in this thread the total amount of debt you would like to pay off during the 2020 calendar year. $25,000 (pay off taxes and personal loan, and a huge portion of credit cards and auto loan). Any raises/bonuses/extra income along with regular monthly payments will go toward this goal.
3. Check in monthly in this thread and report on how your debt smackdown is going. Am bummed I missed the YNAB bootcamp, but perhaps this is a blessing in disguise since I am not crazy about posting on FB with my real name about my debt, but also want to be accountable.
4. Post monthly on the 2020 Google Sheet to track your progress. Claimed a line and posted my details :)
January checkin! I've kept to my schedule and managed to pay £1,013 to my rent arrears (the maximum amount I can without putting my parents over the yearly allowance for untaxed extra income). I'm planning to put any extra money I have at the end of the month towards my other debt, but I'll post a reply to this when it comes time for that.
Adding together my rent & arrears, I'm now spending more than half my paycheck each month on rent, and I'm feeling the squeeze, but if I continue at this pace I'll have paid off my arrears by May and should be able to afford to be a little more relaxed in paying the rest off.
- Rent arrears: £1,013/£4,788.35
- Other debt: £0/£8,724.00
January check in
Just made my first payment - and that payment completely paid off another CC! Woot! That makes THREE cards that I've completely paid off since starting YNAB a couple years ago. The rest of this year's challenge will be paying off the full balance of yet another CC. That will leave me with only the two that I use day to day (that have some higher balances that I want to pay down eventually so they're truly day-to-day use without a ton of interest. That'll have to be my challenge for next year lol)
So, here are my current numbers after this month's payment (my starting balance is slightly different than I originally set for myself, there was a small interest charge that hadn't been added in yet) -
Starting balance: $3885.24
Paid down this month: $342.24
New balance: $3543.00
Debt Smackdown Totals: $3543.00/$3885.24 = 8.81%
New to this! Happy to have found it though 😄 been slowly bashing away at it... glad to have a group to share the amazing ness that is YNAB.
- Credit card # 1 = £1,308.16 (Not nice %)
- Credit card # 2 = £1942.21 (Not nice %)
- Credit card # 3 = £5,648.00 (0%)
- Kitchen Loan = £10,047.68
Starting Total - £18,946.05..... eessshhhhh
# 158 on the sheet, so far £598.26 paid, Target for the year £8,000
£598.26/£8,000 = 7.47%
Hello all! I'm happy to have come across this post and group. Kinda wish I had found it earlier, because I sure do need some accountability. I'm a former YNABer and have fallen off the train a couple of times, but hoping 2020 is the year to knock down a good piece of this nasty debt. I have more debt than I'm listing below (student loan, another car payment and mortgage), but these are the two I'm hoping to knock out first.
- 1. SoFi personal loan for $33408.28 - goal is $10,000 for the year. This is a loan I took out to consolidate credit cards and brought them to a $0 balance. I'm telling you guys, my credit score shot up (probably a 60-ish point jump into 800+ territory) after doing this. But I do make sure that every bill I pay is on time because that is a big part of a good score. I guess personal loans have less of an effect than credit cards on your debt-to-income ratio. So yay to that!
- 2. Car loan for $3735.88
Looking forward to our collective progress! 🤗
I am receiving a nice check for almost 7k in the next few days. This was an expected check, however, I was going to throw most of it into savings for a specific reason. But after playing around with the magic of math, I realized that if I use that money to pay off my debt, I will need to put LESS money/month into saving for that purchase than I am paying my debt (150$ instead of 500$).
So besides my student loan which is not in repayment for another year...
I AM DEBT FREE BABY!!!!
Now to join the savings spreadsheet :)
6903 - Extra income
5662 - Remaining balance on final CC
240 - Remaining balance on phone tab
STILL leaves me with 1001 to put into savings!
Good luck to everyone else still on your journey! You can do it!
Hi everyone my husband and I are planning to pay off 3 credit cards this year totaling 64020.28. I have a student loan I would like to payoff as well that's 15376.01 for a grand total of 79396.29. I don't think I will be able to get the student loan paid off but my goal is to definitely get the three cards paid off by Dec. 31, 2020. Whatever is left of the student loan will be tackled in 2021. I forgot to post; I claimed a line but didn't post to this thread. My original starting debt for 2020 was 81127.92 but I have paid little and will be able to throw about 7200 more by the end of the month!
HI all i'm also in the boot camp. that's where I discovered this thread. I have far too much debt.
$59305 to be exact! not including our mortgage and our car. We both have good incomes have had far too many medical bills which have put us behind but also have not said no enough times to our kids. SO here goes our kids have been told NO a lot since I refreshed Jan 1st and will be told NO a lot more. I have also told myself NO on a number of occasions over the last couple of weeks so keen to give it a red hot crack.
Id like to pay off $10,000.00 of this debt if not more
So everything has been paid/interest posted for January. So I can mark down a total of $421.82 paid off in the month. It doesn't sound like much, and is only 3.37% of my annual goal.
BUT! I had ZERO overtime on either of my regular paychecks this month, my "gig" side-hustle came up wayyyy short of usual because of holiday stuff. And this is the first month since I've joined YNAB in October 2018 that I didn't ADD debt. So hey, I'm counting this as an awesome first step in the right direction.
Keep killing it, folks!
Last year... well, minimum payments were made, a baby was had, and more debt accrued. This year, I'm going to focus solely on our credit card debt and once that is done away with, there's the student loans, but we have time for that.
As of today:
Credits cards -$8731.51
The difficulty I find is staying accurate with the pay off. About 2500 of that debt is revolving debt, bills that get paid through the credit card because we cash in on the miles. So it's constantly fluctuating. My question is how to account for the rise and fall of the debt? Hope to do better than I did last year and actually pay something down instead of getting more debt. 😂
1. We have $48,200 on credit cards
2. We are going to try to pay off $25,000 principal in 2020 using monthly budgeted payments plus a big chunk from bonus and tax refund (and most importantly not just racking up more debt as we pay down).
My wife and I just discovered YNAB at the beginning of January. We are very excited about this great system and tool.
We claimed line 169.
This is our second debt smackdown, having paid over $12,000 toward our car and student loan debt in 2019 (over 80% of our goal of $15,000). We have about $235K in student loans between the two of us, and not quite $12,000 left on the car. (We aren't including our mortgage in the smackdown, although we pay regularly on that, too.)
This year, we are going for a goal of at least $20,000 toward our student loans and our car (including both principal and interest), with a stretch goal of $25,000. We only have about $2400 left on husband's largest interest student loan, and then we will put the focus on paying off the car so that it is an asset instead of a liability before turning back to the other student loans.
For the first time ever, we are truly a two-paycheck family, so this year should be very doable. We are looking forward to starting to really make a dent in our debt!