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 :)

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  • January Monthly Check In

    Suuuper early check in. I'm due to have a baby this month, and so we are trying to get a bit ahead on bills.

    • Credit Card: Paid $400 - Balance $2,700
    • Construction Loan:  Paid $400 - Balance $3,550
    • Medical Loan: Paid $100 - Balance $1,800

    Total paid this month $900.  $900 / $8,950 - 10% complete for the year!

    Like 8
      • Krys
      • I like bacon and sarcasm
      • Krys
      • 8 mths ago
      • Reported - view

      The Goat Queen 馃憦<-- that's me applauding your progress! Way to get after it right away!

      Like
    • The Goat Queen wahoo! That's terrific! Good luck with the baby! I hope everything goes smoothly!

      Like
    • The Goat Queen 10% down only 1% into the new year - that's an amazing starting point! Congratulations on your coming baby and on tackling that debt! :)

      Like
  • Life has just tossed me a win. I'm going to be moving back in with with a former roommate in March. Upshot is, because I live in a very expensive city, my rent is going to be $900 less per month.... I know! As a result, I've readjusted my debt payment goal from $20,000 to $29,000. The difference this move will make in my life is massive. It means that my original plan would have taken about 3.5 years, and now I should be debt free and have a 6 month emergency fund in two years!!! So excited:)

    Like 9
    • auntdar awesome!!! Congrats!!!

      Like 1
      • Technicolor Cheetah
      • Not sure when I became a cheetah...but I'll run with it
      • technicolor_cheetah
      • 8 mths ago
      • 4
      • Reported - view

      auntdar 

      And, since you've lived with this person before, you have a good idea of what to expect!  Here's to a good roommate relationship!

      Like 4
    • auntdar That is super exciting. Congratulations!

      Like 2
  • Total Debt Payoff Goal for 2020 = $15,000 (Line 104)

    January 2020 Payoff/Balances

    Beginning Debt: $26,902.48

    CC: $0/$5,080.87

    Auto Loan: $0/$11,845.69

    Personal Loan: $0/$9,975.92

    Total Debt: $26,902.48

    Like 3
  • I'm very ready and motivated to end my debt in 2020. Last year I joined in the challenge about halfway through the year and it just didn't take hold. Now, I'm ready. 

    I'll be tackling credit cards, personal loans, and student loans (though I won't be tracking the student loans until the cards are paid). 

    All in, I will be tackling the following:

    • $18,520.77 in credit cards
      • Card 1 - $1452.16
      • Card 2 - $1568.93
      • Card 3 - $2970.29
      • Card 4 - $2846.39
      • Card 5 - $2434.60
    • $17,165.81 in personal loans
      • Loan 1 - $7329.92
      • Loan 2 - $4728.47
      • Loan 3 - $5107.42

    ================================

    Grand Debt Total: $35,686.58

    Like 5
    • just_zoshin We'll be here to root for you through the year! :)

      Like
  • checking in here line 102

    PL1- 10945

    PL2 - 5690

    cc - 5178

    Like 5
  • Just joined, line 105.

    Four credit cards totaling $28,591. My goal is to pay $10,000.00 towards the credit cards while continuing to save for true expenses (taxes, summer camp, birthdays, christmas, pet care, emergency fund). We are putting just about $1000.00/month towards credit card payments (including interest), and not accruing any new CC debt, so we should be able to do it.

    Like 7
    • Maroon Mermaid 

       

      Finance is psychological for sure! Saw that we had almost double what I needed in savings to pay off one of the cards, so I raided the 2019 summer camp category, which I'd filled way ahead of schedule and have time to replenish from allocated monthly savings, in order to completely pay off the 2018 summer camp I'd put on a 0 interest CC. This month we've paid off $2401, and have $100.00 each left to pay on two other cards.

      I'm debating whether to transfer the $8,900 balance from another credit card onto the 0% interest one that I just paid off. The grace period will be one year from date of transfer. We pay about $130/month in interest, plus $100 to principal. Any purchases made on this card are budgeted for and paid off the following day, so we are not accruing any new debt. I'm not sure I'll be able to pay it off in time. The balance transfer fee is 3%, and the offer is available through April, so I have some time to think about it.

      Like 2
    • Maroon Mermaid You've made amazing progress already just a few days into the new year! Is it possible to transfer a partial amount to the 0% interest card? That way, you don't have to worry about paying the full amount before the promotional period is up, but you'd still save interest on the amount transferred over. I'm not sure of the details in the offer, but I hope you can use it to your advantage! 

      Like
    • Maroon Mermaid $130 a month in interest is $130/month that could be applied to principle if you do a balance transfer. If you're able to free up enough cards that you can balance transfer back to another promo at the end of the period if you don't pay it off then it might be worth it to just go ahead and do it. I'm sure the $130/month is more than the 3% fee you'll be paying as well...
      Strategy is so important when paying off debt!

      Like 1
    • Faness Maybe! One of the motivating things is only having three CCs left, so splitting the balance from one to go back to four is messing with my head. I'll give myself until April to make the decision, and check in with my husband to get his input as well. Thank you for raising this point!

      Like
    • farfromtheusual That's another factor to consider :) I'm checking on the interest rate after the 0% offer ends to see if it's lower than what we are getting on that card now, in which case it will be a win either way. I'm giving myself till April to make a decision and talk it over with my husband. Thank you for your advice!

      Like 1
    • Maroon Mermaid It's been a while since I posted and just finished updating the spreadsheet. We've paid off just over 13K (including a new $3K vet debt), which means I met my goal of paying off 10K of our existing credit card debt. 

      I ended up transferring the almost 9K to the 0% card, and I'm on track to pay it off the month it's due (Jan. 21). 

      I updated my spreadsheet to reflect we expect to hit 20K paid off by the end of 2020. This sounds great in theory, but we deliberately added a 25K HELOC to our balance sheet.

      This is what debts/savings looks like for us right now:

      Debts:

      -3300 on a 0% card expiring 11/20, scheduled to be paid off on 10/20

      -8100 on a 0% card expiring 01/21, scheduled to be paid off on 01/21

      -11500 on a 19% card (paying this off will be my 2021 debt smackdown goal)

      -24300 HELOC (paying 25-50% off on this will be part of my 2021 debt smackdown goal)

      Savings:

      6000 emergency fund (just about one month's expenses, including 'electives', my goal is to increase this to 18000 next year)

      500 health/prescriptions sinking fund--fully funded

      500 car sinking fund--fully funded

      Working on fully funding the rest of 2020 birthdays & holidays and taxes for next year.

      Accomplishments so far:

      Fully funded and paid off 4000 tax bill

      All the savings above

      Paid off 3000 of new debt (cat needed surgery)

      Paid off 10000 (including interest) of existing debts

      Saved 15000 to supplement HELOC (our renovation quote came in at 33000, we decided to get a 25000 HELOC, and fund the rest ourselves. I added the other 7000 to make it an even 40000 in the remodel category for my peace of mind). Whatever doesn't get spent from this fund will be moved to savings.

      What a year. All these wins are a balm for my mental health, as I was wondering how well we'd done.

      Like 2
  • Hello!

    I am Ica Paige and I was part of the group last year but stopped following the forum...

    I started last year with 3k in credit card debt and ended with 6k! Yikes. However, I had a baby late 2018 and did a 6 week trip in June-August which boosted my CC debt. I also had surgery and couldn't work.

    I did manage to pay off 2/3 cards from September - December! Just one left!

    This year, my priority is to pay off that final credit card and KEEP THEM PAID OFF! If I succeed in that, my stretch goal is to put money aside for my student loan. I still have 2 more terms left and my estimate for my final loan is around 20k.

     

    Debt payoff goal: 6k

    Stretch goal: 2k saved for my student loan.

    Like 8
      • Peripherie
      • Tomato_Captain.11
      • 8 mths ago
      • Reported - view

      Ica Paige 

      I love the concept of a stretch goal for debt! Thank you for inspiring me to add one of my own. 

      Like
  • Hello, YNABbers!  We're starting 2020 with$106,814.77 of non-mortgage debt.  I'd like that total to drop by at least $31,814.77 this year, bringing it below $75,000 by Dec. 31, 2020.  Last year I changed from a lower-paying job to a higher-paying job, so I'm hopeful that we can make progress in this area.

    Like 5
    • Hi Coral Mare !

      It's been mentioned in the thread above, but undebt.it is a great way to list all your debts. It even syncs with YNAB so you can track your payments, compare payoff approaches and more.

      You've got this! :)

      Like 1
      • Airstream Dream
      • Debt Free by 2021!
      • airstream_dream
      • 8 mths ago
      • 3
      • Reported - view

      Coral Mare I'm also starting the year out with a debt load over $100,000 (around $111,000) and I'm so excited to get below that 100K mark this year! When I add our mortgage to the mix I start to get heart palpations. Good luck to you--we've got this! :-)

      Like 3
      • Coral Mare
      • Rolling Along on this Debt-Free Journey
      • Coral_Mare.6
      • 8 mths ago
      • 1
      • Reported - view

      Coral Mare Week-Later Me had to check the rationale for my seemingly random payoff goal.  OH, it was go get under $75k!  Now I remember.  

      Math-wise, as long as I can pay off 8.3% of the goal each month, I'll hit the annual goal. Rocking on...

      Like 1
      • Coral Mare
      • Rolling Along on this Debt-Free Journey
      • Coral_Mare.6
      • 8 mths ago
      • 2
      • Reported - view

      Coral Mare In case Future Me loses her paper list o'debts, here's what created the starting total:

      Truck Loan ---- $46,126.76 (4.5% interest; paying $182.50 each Monday)

      Car Loan------- $27,817.29 (0.9% interest; paying $575 each month)

      Camper Loan - $32,240.72 (7% interest; paying $425 on the 2nd and sending as big a snowball as can be gathered on the 3rd.  The bank assured me that this is the best way to send the max to principal given the parameters of their system.)

       

      When the camper loan's balance is $18,332.30, it'll be 60% paid with 40% of the starting balance to go.  That would be a cool secondary goal to hit this year.

       

      Based on feedback and info from the Debt Bootcamp, I'm also challenging myself to fund all monthly True Expense goals prior to the building of the snowball.  Let's see how that works out!

      Like 2
      • Coral Mare
      • Rolling Along on this Debt-Free Journey
      • Coral_Mare.6
      • 6 mths ago
      • 4
      • Reported - view

      Coral Mare February Check-In

      Truck Loan & Car Loan have been sent their planned payments.  Camper's balance after tax refund & aggressive snowball attack:  $23,150.89.  True Expense funding is rocking along.  

       

      Interesting twist:  February's work schedule has been more wonky than usual.  Depending on the fallout from the changes, we may end up with extra to send in March.

      Like 4
  • Claimed Line 112!

    I managed to pay off my car in 2019 and other than the Mortgage my "only" debt left is $24,000 in student loans.  $25,320 will pay it off in full at the end of the year (with interest) which is what I put as my payoff target.  

    This is potentially an impossible stretch as I've only been able to forecast $16,000 in my budget to be used for this but I'm going to try.  I am hoping that reporting back here will help keep me accountable and motivated this year!

    Like 5
    • Cyan Violin The upside with a stretch goal is that even if you don't fully reach it, you'll still be further ahead than where you started! Congratulations on paying off your car and here's to tackling those student loans (that's my goal for this year, as well)! :)

      Like
  • Line 11, bit slow to post...!

    2020 is the Year of Clearing Debt. I started to make a dent in my first 6 months of YNABing in 2019 and now is the year to get it all sorted:

    CC#1: AU$13,343.86 (This is the big, stubborn debt 馃槴)

    CC#2: AU$1,679 (interest free purchase for new laptop in after Christmas sales - maybe a bad idea... some old habits die hard 馃槻)

    Afterpay: AU$154.01 (small and will clear quickly but I at least wanted to take an early win so I included it 馃槉)

    Total debt: AU$15,176.87

    I'm cautiously confident I can clear this debt by year's end. Looking forward to the tracking throughout the year and the inspiration and encouragement from all others here.

    Good luck, one and all!

    Like 4
    • spyral Big and stubborn debts are the worst (hello, student loans), but you've got this! That credit card will be gone before you know it! :)

      Like 1
      • spyral
      • Spyral
      • 8 mths ago
      • 1
      • Reported - view

      Faness Reading these forums I am so glad to have gone through the Australian University system at a time of low fees (2002-06) and government loans indexed only for inflation. I paid mine back in 2010 馃

      All debt since that is just my fault 馃槀

      Like 1
      • spyral
      • Spyral
      • 7 mths ago
      • 3
      • Reported - view

      spyral Off to a slow start in January. Only $248.41 paid off. Plenty of room for improvement 馃槵

      Like 3
    • spyral Any start is a Good start here! Even if it's a smaller step than you had hoped for, it's still a step in the right direction! :)

      Like 1
      • spyral
      • Spyral
      • 1 mth ago
      • 7
      • Reported - view

      spyral Gosh, didn't realise it had been January when I last posted an update!

      No doubt 2020 is proving very challenging for many people, especially on the debt paydown front. I count myself very lucky that I have stable employment through all of this.

      That, combined with a huge reduction in the amount of going out and socialising has allowed me to really get stuck in to debt reduction.

      I started the year with a goal of paying off AUD$15,176.87 in debt which was the combined total of two credit cards, and two line of credit type accounts (Afterpay, Zippay - not sure how well known these are in the US and elsewhere). 

      As of June - so half way through the year - if have paid off AUD$6,500.71 which is 43% of the debt. However, the really positive thing from my point of view is that in the second quarter of the year I paid off AUD$,4892.84 which was 32.2% of my debt total.

      On current projections, I will clear my debt in the first half of November and I couldn't be happier about this! At the start of the year, clearing my full debt in 12 months felt and seemed like a stretch. It is odd in one sense that the pandemic is probably going to be the thing that really gets me over the line with my goal, but I will take it.

      I am certainly thinking of, and wishing the best, for all those who have been less fortunate in their financial and health circumstances than me over the last few months.

      Like 7
    • spyral Wow! Way to go! My BF and I were talking about that last night as well, the fact that we are spending SO much less going out than we were before, and we never really thought that was possible as easily as we have managed it when the world decided to shut down. Interesting how a little perspective can change everything!

      Like 2
  • Joining in at line 110.  I will be focusing to pay off my car loan of $8,747.  Resurrecting my old burndown  chart from a couple of years back for tracking and motivation.

    Like 7
    • Keith Borders I love your burn down chart (+1 for visuals)! I can't wait to see the updates as we make it through the year!

      Like
  • Hi! This is my first year doing the debt smackdown. 

    I鈥檓 planning on finally paying off student loans (one was paid off on the 1st before I joined, so I鈥檓 not including it in my totals). I also have medical bills from the birth of my last baby at the end of 2018.   

    We also have credit card float that we may get to if we pay off the other two debts early. 

    Once these are paid off, our only remaining debt will be our mortgage. 

    Student loan - $2838.23

    Medical - $3097.20

    Like 7
    • Purple Goldfish Congratulations on the new addition to your family and on paying off that student loan! If anyone asks how much debt you paid off in 2020, I hope you'll include it, too! (All debt amounts paid off are progress!)

      Like
  • YNABer since September 2018 - first-year on the official debt smackdown - and doing the Debt Bootcamp.

    Debt Focus is on credit card debt (~$11K) this year while maintaining normal mortgage payments and car loan.

    We have a $1K EF, all our obligations for January as well as our true expenses mostly funded as of today January 3rd.

    Widely varying income so trying to learn how to work this optimally! Think ideally I want at least an 8-week buffer asap, but right now I just want cc debt gone!

    I go around in circles trying to figure out what I can actually throw at debt, so I don't leave the budget vulnerable. Since starting YNAB I have become a bit of a hoarder of money in true expenses. Then feel drawn to move all of it to pay off debt, but since we've made that mistake before and got back into debt, I don't - however, it's so tempting that I might just fall into that trap again... 

    Like 7
      • Krys
      • I like bacon and sarcasm
      • Krys
      • 8 mths ago
      • 3
      • Reported - view

      Gazelle Intensity I'm doing Debt Bootcamp, too!

      I'm also going through the same mental gymnastics regarding true expenses vs debt, but I keep landing on continuing to fully fund my true expenses each month, and throwing leftovers (and any found money) at debt. It's only been a couple months, but it seems to be working out so far!

      I wish you the very best of luck in 2020!

      Like 3
      • Purple Foal
      • Purple_Foal.3
      • 8 mths ago
      • 2
      • Reported - view

      Krys  Gazelle Intensity That's where I am too. I want to have a buffer in a couple of months so that I won't pay any bank fees. I know I could switch banks and looked into it, but it's A LOT of work with all my PAPs coming out and frankly the competitor doesn't have the best customer service. So once my buffer is in place, then I will save $12/month & apply that to my debt snowball. I added a few lines under my debt payment for other areas that I have saved money and could add that to the snowball. I agree with not wanting to get into debt and just want my buffers built up in case something happens. Strike action is very likely this month at work unfortunately. 

      Like 2
    • Hi Gazelle Intensity !

      We have an 8-part series on Mastering A Variable Income that you might find helpful! I'll leave the links below in case you want to take a look. :)

      Part 1: You Can Budget with a Variable Income lets you know that it's not only possible to budget with variable income, but it will help you plan for the future, and even out your various seasons of income!

      Part 2: How to Answer the Critical, "Can I Afford it" Question 

      Part 3: Beware the Dangers of Forecasting.

      Part 4: Embrace Your True Expenses 

      Part 5: Learn to Expect the Unexpected 

      Part 6: Change your Mind, Change your Budget

      Part 7: The Importance of Aging Your Money 

      Part 8: No More Excuses 

      Like 2
    • Faness Awesome! Thanks. I will definitely check this out!

      Like 1
    • Gazelle Intensity if you are new to YNAB give yourself some time before you make those big decisions about paying of chunks of debt. I've made the mistake of getting a bit too excited, and then the end result is that I slide backwards again when I can't keep up with whatever happens. This is especially true if the income varies.
      I've figured out quite a few tricks to dealing with that as my small business income varies wildly, too, so feel free to shoot me a message if you want to chat about how to cope with it.

      Like 2
  • Hey 2020 Debt Smackdown-ers! I claimed line 113 this year, and we are hoping to pay off all of our credit card and auto loan debt. Together the total is $28,000, which includes any interest we will pay on the cars this year. 

    Like 6
  • We have a mortgage, a small personal loan, and far too many credit cards with too much money on them.  We are going to focus on paying down our credit cards as much as possible.  The goal is to pay down $20, 000 this year which will be a substantial dent in our credit card debt.

    Like 4
  • Just joined branching off the Debt Bootcamp. I have several credit cards, though most of them are paid in full, and one auto loan. Between these 3 combined, I want to payoff a total of 20% by the end of the year. I've been fairly lax in paying the credit cards off, because at 0% I feel like my money can be better served in retirement accounts or other things, but I also don't want this number to grow. It'll be interesting, because there's a family trip planned for later on this year, a month overseas to visit family, and while the airfare is paid off (thanks rewards points!) the accommodations still need to be worked out. Here's hoping it doesn't add (much) to our debt.

    Auto @ 2.9%: $23, 269.58

    CC 1 @ 0% : $11,409.25

    CC 2 @ 0%: $12,233.32

    Like 5
      • Purple Foal
      • Purple_Foal.3
      • 8 mths ago
      • 2
      • Reported - view

      Rhei You never know when their rates may change, so paying off your CCs is a great idea. 

      Like 2
    • Rhei Is the 0% interest for an indefinite amount of time? Debt is debt, but 0% interest debt is slightly less bad debt. ;)

      Like 2
      • Rhei
      • Rhei
      • 8 mths ago
      • 2
      • Reported - view

       Purple Foal Faness It's 0% "indefinitely" thanks to the Servicemembers Civil Relief Act (SCRA). You're both right in the sense that it's debt, but I have a hard time throwing more money at it since I can gain more in retirement by growing my money now in IRA/TSP.

      I've actually been throwing more money at the Auto Loan to get ahead on that since it actually racks up interest, and I'm 3 months ahead in payments there.

      Like 2
  • Joining in and line claimed--this will be my first time doing the Debt Smackdown.  I'm working Dave Ramsey's program to get out of some massive debt which was brought on by being unable to sell a home for the last 3 years.  Looking forward to seeing everyone's progress! 

    We are focusing solely on our HELOC right now because it will balloon in a few years and needs to be gone before then.  I know Dave would disagree  with us going out of order on our debt snowball, but it's our reality and we have chosen to accept it.  We paid off over $11,000 in other random debts (medical bills, household maintenance) since starting Dave's program in September 2019.

    Not posting actual amounts, but our list of debts includes:

    car loan

    oldest child's student loans

    mortgage on previous house (now a rental)

    HELOC on previous house (which was down payment on current house)

    mortgage on current house

    Like 3
    • Slate Blue Storm Congratulations on your progress so far! $11,000 is a number to be proud of and it'll only grow in 2020. 

      We're big on budgeting for priorities, so if paying off the HELOC is a priority, then go for it! :)

      Like 1
      • Technicolor Cheetah
      • Not sure when I became a cheetah...but I'll run with it
      • technicolor_cheetah
      • 8 mths ago
      • 2
      • Reported - view

      Slate Blue Storm 

      Personal finance is just that, personal.  What works for Dave won't work for everyone else and each of us have our own priorities that might not line up with the 'rules' of any one diet, financial or food ; )  Twinkies all day every day is a bad idea, but barring gluten issues/diabetes, etc, one twinkie once a week of overall healthy eating is fine.  Same with paying down HELOC when other things might be a better choice according to Dave Ramsey.

      Like 2
    • Technicolor Cheetah I agree.  We've snowballed lots of things per Dave Ramsey, just to free up mental clutter and to try to maximize medical tax deductions.  Now, though, that variable interest rate on the HELOC is killing my progress.  It has got to go!!!

      Like 3
  • Line in and ready to be serious this year.

    I have about $185,866 of debt which is split between 2 Credit Cards, 2 Personal Loans and a Land Loan.   

    I want to be a bit aggressive with paying off the personal loans and CCs along with some principal on the land loan so I am setting a target of $58,100 for the year. This should also give me some space to boost my savings as well. 

    Here's to some decreased debt loom and gloom.

    Like 3
    • Tan Banjo (c031bfdaebb1) January completed. 馃檶馃檶. For the first time ever being aware of all my debt made me impatient to be paid, not to go out or do dinners or anything. Just wanted to be in a position to make a payment on the debts. Was a slightly weird feeling.

      I'm focusing on paying off the smaller debts with the higher interest rates first but can't wait until those go away and I can start paying off the principal on my land loan.

      Like 1
      • Purple Foal
      • Purple_Foal.3
      • 7 mths ago
      • 1
      • Reported - view

      Tan Banjo (c031bfdaebb1) Yes! Be weird and different from the rest of the herd in debt and working their whole life without goals. You're in good company. I've been focusing on my debt, buffer, and bracing for the strike situation at work. I have told a few people that I'm not spending any money going out until this is all over. Didn't feel like I'm missing out. There's lots of other free things to do and great food to make at home. Stay focused on your goals! :)

      Like 1
    • Tan Banjo (c031bfdaebb1) February locked down. Happy to keep the momentum going and seeing my net worth go up. For me it means that in future when I go on trips, when I plan things it won't have any guilt attached because I'll know that I can afford what I am doing

      Like 5
    • Tan Banjo (c031bfdaebb1) 馃搮March part 1 check in: Always thankful for bonuses. Was a good chunk this year and thought initially that I would throw it all at debt. Extremely happy that I listened to the class on creating a Debt Paydown plan and realised that it's all good to do a lumpsum but if that just means that I am going to have to dip back into debt for regular expenses then no bueno. 鉂屸潓 I was still able to pay off the credit card that charged me the highest interest 鉁咅煈嶐煆綽ut instead of completely paying off another one and then being cash strapped for the month I fully funded my categories. This means when I get my regular pay I don't have to worry about the April bills as money is already set aside for them 馃檶馃従馃檶馃従馃檶馃従. That way I may even be able to do another payment while funding May bills (probably not but I'm cautiously optimistic - 馃to dreaming). So as of today I am 25.22% closer to my goal, 1 credit card down, 1 to go, additional payment made on 1 personal loan with the other regular payments fully funded. There is definitely a bit of light coming ahead (may it not be a train馃殏)

      Like 7
      • Max Green
      • Software Quality Assurance Test Engineer
      • maxgreen
      • 6 mths ago
      • 3
      • Reported - view

      Tan Banjo (c031bfdaebb1) That sounds like an excellent plan, and good job for keeping some cash on hand for further debt prevention.  I used to do that all the time, put all my money down on debt and then have nothing left over and have to start whipping out the CC again.  I got my bonus this month, too, but keeping some back as a hedge against the spending we have to do...  We're in the process of moving, so everything is fluid.  Paying down one rent deposit, hoping to get our current deposit back, all the expenses of moving, yada yada.  Keep up the good work!

      Like 3
      • MXMOM
      • MXMOM
      • 6 mths ago
      • 5
      • Reported - view

      Tan Banjo (c031bfdaebb1) we have a category called extra debt payment that we allocate additional income to as it comes in.  It鈥檚 nice to see it accumulate. But that also lets us be thoughtful and intentional with that money. We have a situation that happens with our payroll every year around August where our annual unemployment insurance and Canada Pension (our version of social security) contributions max out for the year. That means each paycheque after that is more. We take that additional amount and park it in that extra payment category and then once everything in the year has been dealt with, we take that and put it on debt. That also makes sure we don鈥檛 end up with lifestyle creep when those cheques drop back down in January. 

      Like 5
    • MXMOM I like the idea of a category for extra debt payments. That way it can be separate from regular savings but still mean that I retain some optionality in case of a difficult season. Will definitely be adding this to my budget. Thank you for the idea.

      Like 1
    • Max Green Yeah. I have done like you said before and it always makes me lose momentum when I feel myself slipping back into a debt that I had paid off. 馃馃従馃馃従that everything with the move goes smoothly. I won't relay all my horror stories with deposits.

      Like
      • Wiecked
      • Happy Happy
      • Orchid_Tiger.5
      • 6 mths ago
      • 2
      • Reported - view

      Tan Banjo (c031bfdaebb1) We do it like Tan Banjo (c031bfdaebb1) as well. Have a category called:

      馃捀DEBT fund

      Emoji use is very important and we throw all sorts of bits into there. Towards the end of the month we start looking at the categories we haven't spent much on and we toss more into it. It's all very exciting! You are doing great! 

      Like 2
    • Tan Banjo (c031bfdaebb1) April Check In: This has definitely been a month to be thankful. I've been able to make an additional $1,700 payment on one of my personal loans while maintaining a 1 month buffer for my age of money. The times have definitely been teaching me how important it is to manage my debt well but also have an emergency fund for the things that can and will go wrong. Onwards and upwards to May.

      Like 4
  • Claimed line 89

    I have one credit card of $5,168 to pay this year

    Like 4
  • Hello, fellow YNABers!

    I'm excited to join the 2020 Debt Smackdown this year! I'm aiming to put at least $12,000 towards student loan payments this year (my only debt currently), with a stretch goal to get the balance of my two loans to be less than $20,000. I've written more in a journal entry, and am excited to make some good gains this year.

    I didn't participate last year, but managed to put just over $11,000 in payments towards these loans last year, plus refinanced the bigger of the two so I could save about $70-80 in interest per month (or $840-$960 per year, which is huge).

    I'm line 123 on the spreadsheet. Cheers, all! 馃槑

    Like 5
    • Spider Plant First payment officially has gone through. I do keep some spreadsheets of my loans, and have for the last couple of years. Have to admit that one nice thing about them is seeing that bit by bit, the interest payment gets steadily lower over time. It's definitely been more dramatic since I started getting serious about paying these down, but seriously: last year my smaller loan was costing me ~$36/month in interest, and this month it's down to $27 in interest. On the bigger loan, it was ~$170/month in interest, then down to $104 with the refinance, and this month it's now down to $92. It's really, really nice to see more and more go to principal each month.

      Like 6
    • Spider Plant I hadn't thought of separating this information out until now, so thank you! I have several student loans (the ones with the smallest balances happen to have the highest interest rates), and paying off one of them saved me $9/month in interest.

      Like 2
    • Faness Yay! Glad to hear it and yay for victories in saving on interest! It was painful at first, but it made me understand very quickly why my loan balances didn't seem to change much early on (once I started trying to make sense of them and not just put minimum payments toward them). I was paying  ~$3,500 a year toward one loan and barely making a dent, then discovered that just $1,000 or so of that was going toward principal each year. I did some quick math and discovered that sure, it was a 6.625% interest rate on the loan, but over 70% of every payment was going towards interest. 馃槷

      Like 2
    • Spider Plant I know that's straight forward math, but it seems so deceptive. When explaining a loan to students, "6.625%" doesn't sound like the thousands in interest it becomes or 70% of a payment! 馃槹

      Like 2
    • Faness Right? It's been 10 years now since I did it, but the exit counseling at the time basically said "Here's how to make your payment, it's important to pay on time each month" and that was basically that. I feel like loan counseling should be much more thorough and also *not* taught by any institutions which have vested financial interests in the sweet sweet interest payments they'll be getting for years to come (I sure wish my high yield savings yielded even close to the interest rates these loans command...).

      Like 4
    • Spider Plant Without getting on a soap box so early this morning, I'd love to see a real overhaul to financial education. My high school had Home Economics, but so many schools don't even mention a checkbook nowadays. 馃槬

      I wish I could take even half of one of my student loan rates as an interest rate for my checking account. 

      Like 3
    • Faness I'm incredibly grateful to you and your YNAB colleagues for all your work and free education! I was a reader of the blog for quite a while before finally hopping onboard to becoming a user, and the blog and the video classes and recordings, and now these forums, are amazing resources for lots of us! Even those of us like me who thought we were savvy with money but whose eyes were very much opened in a good way once YNAB started to click.

      Like 2
    • Spider Plant Second payment just cleared the bank for the bigger loan, woohoo! Nice to add that to the spreadsheet, and here's to keeping up the momentum!

      Like 3
    • Spider Plant Reading this made my night! I shared this with the rest of the team because comments like this make even the uphill days glorious, so thank you! :)

      Like 2
  • Hi everyone! Here goes another year of chipping away at the debt 馃槉

     

    13.9% + $10.00 p/m account fee Personal Loan - $22,472.63

    0% to 07/21 Personal Loan - $14,400.00

    0% to 02/21 Credit card - $6,591.09

    Total Debt - $43,463.72

     

    2020 Goal pay off $22,985.76 which includes minimum payments to pay out both the 0% debts by the due date and the personal loan payment.

    And get married this year without going into further debt!

    Like 6
      • Purple Butterfly
      • It's never too late to start!
      • purple_butterfly
      • 8 mths ago
      • Reported - view

      Purple Butterfly Oops 馃お forgot that I claimed line 125

      Like
    • Purple Butterfly Congratulations on your upcoming nuptials! I'm wishing you peace, tranquility and of course fun, on what can be a very wild day. :)

      Like
  • Paid off 10,000 last year.  Time to knock out the last 8,000!!

    Like 7
    • Maroon Ink Yay for the progress made last year and bigger yay for being debt free in the coming year! :)

      Like
  • I started 2019 with over $42,000 in debt. Despite making 20% less last year, I made good progress. The 2019 smackdown kept me accountable. For 2020, I'm aiming to payoff my remaining debt and have 6 months of expenses in savings. As of the 1st, I had $20, 262 remaining. $5.906 in student loans and the rest for my car. Let's do this! 

    Like 6
    • Lavender Cobra It's impressive that you were able to make less but still pay more towards those debts! Great job! I can't wait to see what you manage in 2020! :)

      Like 1
    • Lavender Cobra LAVENDER COBRA (Self bookmark) Forgot to check in the thread for February and March, but I updated the spreadsheet..... I guess I'm not technically late for March.  

      As of today, I have $17,064 in debt remaining. It's $3,945 in student loans and $13,119 for car note. 

       

      I was really hoping to payoff SL by May and the car by September. With all the craziness, I've shifted my focus to the emergency savings.  My car is priced at 2.09% so I'm not terribly worried about it going out longer. 

      Like 5
    • Lavender Cobra April 2020 Check-In. I was able to make an extra $675 payment towards my student loan on 3/31. It wasn't included in my March check-in so I'm including it here.  I paid my normal principal balance for student loan and car notes this month. I think next month I'll be able to pay off my MBA after all (sadly my trip to Greece was cancelled, but now I've put it towards my EF). Woohoo! 

       

      Debts as of 4/20/2020

      Student Loan: $2,634.58

      Car: $12,740.65

      Total: $15,375.23

      :) 

      Like 4
    • Lavender Cobra 

      Early May Check-In. I paid $1,868.49 yesterday. Expect to pay off the rest of my student loan by end of this month. Woohoo! 

       

      Debt Recap: 

      Payment: $1,868.49

      New Student Loan Balance: $1,197

      New Auto Loan Balance: $12,310

      New Total: $13,509

      Like 2
  • I meant to join last week, but we were out of town and doing anything on my iPad is just a PITA. I've jumped in on line 128. (I was 27 last year, so I'm going to be confused for the next 4 to 6 months!) 

    Total existing debt as of 01/01/2020 (not including house): $58,220 

        Personal Loan: $15,960
        Student Loan: $20,900
        Car Loan: $21,360

    I've put the planned $2300 toward the total for January. The Personal Loan will be paid off by October!  Debt Free date is March 2022, and I'm going to do what I can to beat that!


        

    Like 5
  • Line 130!

    I joined halfway through last year, lost steam near the end of the year, but have spent the holidays refocusing. 

    The goal is to pay down my mortgage as aggressively as possible. It will be a stretch, but here goes! 

    Like 6
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