My 2020 Debt Pay Off Plan | DEBT SNOWBALL METHOD


Here’s the Video Transcript:

hi guys so this is gonna be my debt snowball video I went ahead and wrote in all of the credit cards that me and my boyfriend have a balance on our goal is to pay it off by the end of this year but if we can pay it off faster that’s great so right now towards our credit cards we are putting 1134 dollars if you watch my cash envelope stuffing videos you know that I do $300 every week so that would be a thousand two hundred but $66 of that goes towards my student loans so towards just a credit card debt that we have this is the total amount that goes towards that and I do try to put any extra income that I can towards our credit card debt but that varies so for sure every single month that’s how much goes into there now I’m gonna go in and write the balances on each account the interest rate and our minimum payment due and then I’m also going to be showing you guys the website that I used to come up with the payment schedule now I am gonna be doing a monthly update on my debt snowball since I am able to put a little bit extra every month we are gonna be paying off faster than what the payment schedule that I’m gonna get from the website is so I do want to have this updated every month just to also make sure that we’re not adding back to our cards and because I know we do sometimes end abusing like our Amazon card to purchase things to get the three percent and we’re supposed to be paying that off the same month and getting that out of like our cash envelopes but I don’t want to you know get back tracked in any case so I did list them from our lowest balance to our highest balance so this for target it is $85 it’s like 80 for something but I couldn’t into our account so I’m rounding that one up a little bit the interest is 24 point 36 percent annual interest and the minimum payment is $25 for Amazon our balance right now is 457 with 36 cents and Chris is 24 with 49 24 point four nine percent annual interest and minimum is $25 PayPal is six hundred sixty eight and seventy cents and that zero percent interest and this is a promotional interest until September 2019 which I’m pretty sure we will finish paying that off by then but in any case to make sure that I do finish paying it off by then I’m putting the minimum payment to be 96 dollars in reality it’s 38 dollars but if I leave it like that we might not be able to pay it off by the promotional interesting oh I’ll check on that though so I’ll just put 38 dollars here and I’ll figure that out on that website that I’ll be showing you guys so the Bank of America one has 1815 dollars and forty-five cents and it’s APR is 25 point two four percent and it’s 56 dollars discover has 1859 with 18 cents APR is nineteen point two four percent and it’s 51 dollars the city card has one thousand nine hundred and three dollars and 29th now for the city card part of this balance is on a promotional APR of 4.9% and another small part is on the APR of twenty three point two four yeah twenty three point two four percent so right here I’m just going to put four point nine nine percent through twenty three point two four percent but majority of this is under the four point nine nine percent APR and this one is $38 so this one the promotional offer ends on October twenty nineteen Wells Fargo this one is our highest balanced 3804 with eighty-nine cents the APR is twenty point four percent and the minimum is one hundred and thirty-four dollars so I’m gonna go ahead and add up the balances and then the minimum ten thousand five hundred and ninety three with eighty-seven cents so this is the total debt that we have on our credit cards and it’s a scary number you know you don’t really realize how much you have in debt until you write it right all of your credit cards down in the balances and you kind of wonder like how you let it get that bad but it is what it is and you know we’re on our journey to pay off all of our debt and so that we can buy a house and start a family and it’s just kinda sad oops supposed to be seven just kinda sad that it got that bad but we’re working towards it so basically right here I just added up all of our minimums if we allow us to do the $96 and on this side is if I were to do the $38 which is the true minimum so I’m gonna go ahead and switch over to my my laptop so that I can show you guys the website that I use another important thing that I do need to make a note of is the additional so right here we’re putting a thousand one hundred thirty for mine is the minimum so the additional income that goes towards my credit card debt is seven hundred and nine dollars or seven hundred and sixty seven dollars if I were to just pay the lowest the minimum payment now the only thing that I but for the paypal like for the month of March I have to pay fifty four dollars in order to avoid paying the interest on a promotional balance that’s coming up so I wouldn’t be able to do the $38 on the month of March I would have to do the fifty four but I’ll show you guys how I figure all of that out and yeah so this is our total debt so far starting in the month of March and we are hoping to pay it off by the end of this year like I mentioned so let me show you guys the website that I use alright guys so this is the website that I use to figure out my payment schedule with the debt snowball so the website is financial and it’s the debt snowball calculator so here what you do is you add the credit card that you want to finish paying off first which would be the lowest balance one don’t with the lowest balance so the one with my lowest balance is targeted the balance owed is $85 interest rate is twenty four point thirty six so the what I just showed you guys all of that information is will be put into this calculator so I’m just gonna go through and add all of them and right here it’s showing you the total interest if you were only to pay the minimum payment this is how much interest you’d pay and then how many payments are left if you were to only pay the minimum payment so that’s nice to see see it’s gonna be Cyril now for this one I I’m gonna do the fifty four dollars that I know if we sure have to pay in the month of March after that I might be able to yeah so I’m just gonna do for the paypal one I’m just gonna do the fifty four dollars that I for sure have to pay by the month of March and then I feel like I will be done paying that off before September for sure so we shouldn’t have an any issue with that so I’m just gonna continue to add all my debt in here with the lowest highest now for this one I’m gonna do the four point nine nine percent since I believe like a thousand five hundred of that is on that promotional interest so I’m just gonna put the four point nine nine and did thirty eight dollars okay now right here I’m it says enter the monthly dollar amount you can add to your debt payoff plan so let me add up all of the the minimum payments 25 plus 25 plus 54 plus 56 5138 134 okay so the minimum total minimum payment total is three hundred and eighty three dollars I put one thousand one hundred and thirty-four dollars towards my debt so it’s an extra seven hundred and fifty one dollars a month that I add towards my debt so then you just go to calculate debt snowball and it gives you your current totals so this is how much that I owe currently the payment amount all the minimum payments the minimum payment total that’s that one if I were to only pay the minimum I would end up paying four thousand dollars in interest and I would be done paying off my debt in 57 months so right now way to the additional seven hundred and fifty one dollars that I put towards my debt I will I will pay eight hundred and sixty two dollars in interest and I should be done paying off in eleven months so that is before the end of this year which is great of course any little extra income that I can add towards that will pay it off faster and down here they have the payment schedule so for example each one of these this is the number of payments so this would be March April May June July and so forth and then these are the credit cards so this is how much I have to pay for each credit card so for target it’s actually not going to be 86 73 because there’s no interest added onto the eighty-five dollars since I was a purchase that we made in this month so there’s that one and then there’s for my amazon and then my paypal so all of this so this gives me the amount that i will be paying towards each card in the month of march so that’s basically how i figure out you know how i’m gonna be paying each card and how much I have to pay towards each card so I do have to tweak it just a little bit because I don’t know if you guys saw my cash envelope stuffing video I was able to put an extra two hundred and ninety dollars towards my debt snowball so that one is gonna go towards paying off my target and then part of my Amazon payment so in reality this number is gonna be a lot less which means that I can pay more towards my paypal card and so forth so I will be updating you guys on a monthly basis so that you guys can see how my debt snowball payments are going and so that you guys can celebrate in the mini victories I have I have paid off a couple cards this way so I’m just really excited um this is gonna be the year that we finished paying off all our consumer debt which is amazing and then this website does have some extra additional info on the debt snowball method and anything any questions you guys might have it’s a great resource so I’ll have the link to this website down below in the description box if you guys are interested in using this one as well I know there’s also the debt avalanche method that one works also the only thing is that I need my many victories in order for me to feel like I’m actually doing something okay guys so I’m back so I went ahead and rewrote this with my due dates on here and and I checked my funds that I have available right now from my debt snowball and I have one thousand three hundred and ninety three dollars in there right now and it should only be three hundred dollars I am really bad at actually going and paying the extra money that I do put towards each week or any extra money that I can put towards each week towards the credit card so right now I have $1,000 thousand and I need three dollars that I can apply towards my cards right now so that means that I will be able to pay off my target card and I’ll be able to pay off my Amazon card and I’ll be able to give five hundred and fifty dollars and 64 cents towards my PayPal card so I will have only a balance of one hundred and eighteen and six cents actually so I just you know I’m really glad that I made this video um and kind of made me realize that I need to stay on top of this a little bit more so it’s good that I’ll be doing the monthly updates on my debt snowball so if I end up having any extra money that I forgot to apply I can do that at the beginning of the month so um I’ll just have to re-implement on the calculator that I showed you guys online and it’ll give me how much I am going to be paying towards each card so if you guys enjoyed today’s video please give it a big thumbs up and subscribe to my youtube channel and if you guys haven’t watched my cache envelope stuffing video for the first part of March I recommend that you guys do I’m doing a little giveaway for some cash envelopes on the video um so yeah I’ll see you guys next time bye [Music]

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