HOW WE PLAN ON PAYING OFF ALMOST 30K IN 12 MONTHS | Debt confession & debt payoff plan
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- Опубліковано 21 сер 2024
- Welcome to our channel, my name is Lay 👋
I am a mother of two and we are a family of four on a debt free journey of becoming debt free where we take you payment by payment and step by step along the way.
I’m todays video will be our FIRST ever debt confession and our plan on paying off almost 30k in the year of 2023 and how we plan on doing it.
I am currently doing a collab giveaway where we are giving away 5 different prize to help you kick off your budgeting & debt payoff journey ❤️
If you enjoy budgeting, cash stuffing, savings & debt updates be sure to like, comment, share and subscribe to follow our families journey each step of the way 💕
Please note THIS IS NOT FINANCIAL ADVICE , this is solely sharing our families debt free journey.
40 now, and everything is paid for. Fortunately, I had a college economics teacher who taught me a lesson when I was 18 years old. That lesson was: you can't buy something else for every purchase you make. Having multiple sources of income is prudent, as is living within your means. I have a 13-year-old vehicle because it is all I need, I like it, and I can do whatever I want with it. My net worth is $4 million, and I can pay my bills without stress, but I don't live like I have that. I have no complaints.
I fully agree; I'm 56 years old and recently retired with approximately 1.2 million in outside retirement funds, no debt, and very few dollars in retirement funds in comparison to my portfolio balance over the last three years. To be honest, the financial advisor's role can only be ignored, not dismissed. Therefore do your research to get a reputable one and that should be any individuals main route into the market.
Vey accurate from your POV, It really isn’t about how much you save, it’s about how you manage your money. Whether you work to earn income or invest, it still boils down to income vs expenses, so yeah you may look into investment advisors for a strategy that suits your goals
wow ,that’s stirring! Do you mind connecting me to your advisor please. I desperately need one to diversified my portfolio.
Catherine Morrison Evans’ is my portfolio-coach, I found her on Bloomberg where she was featured, I looked up her name on the internet. Fortunately I came across her site and reached out to her, you can verify her yourself.
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
For years I struggled with outstanding debts, bills and my children's school fees. I was at a point where I wanted to give up. I came across every UA-cam channel about how to make and multiply your income through passive income. Fortunately, I had saved some money and decided to start an investment, bought my second house already, earn on a monthly through passive income and got 4 out of 5 goals, just hope it encourages someone that it doesn’t in investing.
Not quite long I started investing. I'm very curious and need help on how to enhance and increase my returns. Any good investment tips would be appreciated
@@eadad4371 Alright so generally, investing requires higher knowledge. For this reason, It's important to have a solid support structure (financial consultant) to guide you through especially in asset picking. I operate with (REGINA LOUISE COLLARO) an investment advisor who partners with a licensed wealth management firm. For the record, the experience has been the best for my finance. She is quite popular for her services so you might have heard of her.
She made me financially stable investing through her help, now I earn on a monthly basis through her passive income strategy...So I’ll advise you do get a good Investment advisor for yourself.
Yes
@@eadad4371 Alright so generally, investing requires higher knowledge. For this reason, It's important to have a solid support structure (financial consultant) to guide you through especially in asset picking.I operate with (REGINA LOUISE COLLARO) an invéztment advisor who partners with a licensed wealth management firm. For the record, the experience has been the best for my finance.She is quite popular for her services so you might have heard of her.
She made me financially stable investing through her help, now I earn on a monthly basis through her passive income strategy...So I’ll advise you do get a good Invéztment advisor for yourself.
Unfortunately if you are paying the minimum there is no way you will have $15k remaining as mostly those payments will go towards interest. You will probably still owe about $25k if all you do is minimum payments in a year. I would try to pay off as much as you can with the $6k and consolidate all the rest with a low interest loan or credit card. In order to payoff the debt in addition to minimum monthly payment you need to send principal payments separately to be able to reduce the debt faster. Definitely will need more than $776 a month to pay off in 1 year. Since we don’t know your complete budget including your income is hard to figure out.
yes i agree i owed $3,000 on a 18% interest card Discover credit card and my interest was around $45 a month and i was paying $70 a month and it was really only paying $25 toward the principal.
First calculation itself is wrong. How much of those monthly minimums are going towards interest??? Paying interest will not bring down principal. You need to only subtract the amount that goes towards principal from the 29190.38. Not the entire 13.8K. Your monthly snowball is probably around $1200 not $776.53. Basically you will need to pay around $2500 per month towards your debt.
Thank you so much for watching ❤
As mentioned in the video this does not account for interest we are doing the debt snowball method which is paying the smallest debt to the largest that we will be doing monthly updates and adjusting the debt payoff plan as needed we are aware that interest rates are increasing which is why we are planning on paying this off as soon as possible.
The snowball method just means listing your debts from smallest amounts to largest, as opposed to listing the interest rate from largest to smallest. But interest will still accrue. What this commenter is saying is correct - paying the minimum payments will not knock $15,000 off of your principal in a year. Most minimum payments cover just the interest rate of your debt alone. In order to start the snowball method, you would have to pay the minimums plus an additional amount towards your principal every month. Then, when the first debt is knocked out, that debt’t minimum “snowballs” into your additional payments.
Probably $300 -$400 a month goes directly to interest. Been there, done that.
I realise that the Ramsey method goes from smallest to biggest, but given that a lot of balances you have are quite similar, doesn't it make sense to pay off personal loan 1 first instead of CC1 and 3? It would use the same amount of money practically, but would free up $205 for you to snowball earlier and make more progress with, whereas paying off 1 and 3 would only free up 90. Once that was done then you could go back to the method and pay off those CCs next month and follow your plan if you wanted to, but with how similar the balances on them are I think I would look at how big the minimum payment is to prioritise the payment order. Especially if you're not accounting for interest here.
This makes so much sense. I hope she does this
Totally agree with this! We paid off in order of highest monthly payment and it helped so much
Thank you so much for watching ❤
I love this idea, with Dave Ramsey snowball payments are by lowest debt to largest regardless of interest. However this does make the most mathematical sense❤
Cc 4, 5 and pl 1 would be my choice with the 6k, which is $364 a month if I've looked at the lines correctly (bit hard woth no lines on the screen and my vision lol).
I believe Dave Ramsey does the debt snowball or debt avalanche. So definitely pay that $205 monthly first and maybe then do the snowball!
I know you didn’t account for interest because of the snowball method you are using, but I would highly consider taking these into account. It can be shocking how quickly interest builds and pushes your goal back. Use interest rates to determine which is best to prioritize to pay off first. What are the interest rates on the personal loans? Credit cards usually have high interest.
This is just what I was thinking!
I agree since the fed is going to raise interest rates again. I started my journey the day after Christmas and started with the highest interest rate.
I wish her family well, but I too don't think this debt will go away this year using this plan as the interest will continue to accrue on all these bills.
Going by interest rate is called the Avalanche Method. The point of the Snowball Method is to keep you motivated. You pay off the smallest balance first so that you can see progress and keep the momentum. With the Avalanche Method it’s hard to see progress especially if the balance is large. People tend to get discouraged and may quit. But to each their own, whatever works best for them!
Thank you so much for watching ❤
Correct we did not take in account interest because we are doing the debt snowball method where we plan on paying off the smallest debt to the largest regardless of interest. We plan on doing monthly debt updates and adjusting the plan as needed ❤
Can I just say I love your handwriting!
Good job. Hey don’t forget to subtract the the amount that goes to interest.
Thank you so much for watching ❤
We are currently doing the snowball method where we payoff the smallest debt to the largest debt regardless of interest. But with raising interest rates it has motivate us to really kick us in gear with the debt payoff plan❤
@@motherhoodanfinances I'm not sure you understood what she meant. When you multiply your minimum payments x12 to show how much you are paying in a year, you counted that total amount as applied to your full debt balance. However, a large part of those payments will be interest, and therefore you will NOT be subtracting $13,872 from your full debt. You will only be subtracting a portion of that.
I am also doing to debt snow ball. You need to combine those debts and save on interest. I can’t imagine how much interest your paying on each cc. You will get to ur goal much faster.
SK had a very valid point when they said "how MUCH of the minimum payment is getting credited to your balance , (NOT because of the interest rate), but the AMOUNT of the minimum pmt. that is going to your PRINCIPAL balance and how much of it is disappearing to pay THAT month's new interest charged and now added to your balance?
Some minimum payment amounts aren't even big enough to cover the interest that was added on that month!
Sneaky, but it can happen especially with higher rates sticking it to you with higher monthly interest added on.
So please, check to make sure ALL of your minimums are at LEAST covering the new interest each month, to keep your existing balances from GROWING each month, while you thought you were paying at least some of it down!
You Go Girl, PEACE, you can do this!!!!
I recommend buying a debt snowball template from Etsy and plugging in all your numbers into the spreadsheet. Interest changes the numbers a lot more than you would expect, and the spreadsheets will help show how much of your minimum payments go only towards interest and not the principal.
Love the very neat penmanship! God bless your journey! 🙏🏻
Hey Lay! I love this breakdown on your debt payoff plan. I’m creating a chart to mark off my progress each month and serve as a reminder. I think it’s really going to help out. You got this girl! You always set goals and absolutely smash them. 2023 is OUR year! ❤️
Thank you so much for watching ❤
Oh I am super excited to see this chart and seeing if we can incorporate it in our families budget ❤
Great plan. Here cheering you on
Thank you so much for watching .❤
The sounds of the pen was very soothing! I know you've got this!! Cheering you and your family on!
It will feel so good to free up the money that is currently going to minimums.
Thank you so much for watching & your support I am so excited to share this journey with you all in 2023❤
Great plan. I made my first debt confession video and to have it all wrote out and the monthly minimums paid every month it’s mind blowing. But you have a great plan in place.
Thank you so much for watching ❤️
Heading over there now 👏 you are right once you actually sit down and add everything up it really is truly eye opening
What was on the credit cards? If Feds increase rates again that interust will go up on those CC'S. Ugg.
Your handwriting is amazing!
It doesn't appear that you factored in interest which will raise your total amount due.
yep she needs to do it the right way
I’m sure you hear this all the time, but I just wanted to tell you… I LOVE your handwriting! 😊 and I have the same goal of being debt free in 23 😊
Your handwriting is so pretty!
Been there I cheated and paused my car payment to pay off other credit cards that gave me a jump
I enjoyed the straightforward presentation and look forward to your family’s progress!!
TBM in one of her old videos has a link to a great debt reduction calculator. It's a free download for an excel spreadsheet that auto calculates and then gives you a timeline of how long it will take with how much you can snowball and shows total interest paid
Thank you so much for watching ❤
I will definitely check that out thank you! We are doing the debt snowball method❤
@@motherhoodanfinances here is the video link ua-cam.com/video/xyVm4aP3GXY/v-deo.html
Great plan! Y’all can DEFINITELY knock it out and we’ll be cheering you on!❤
Way to go on putting savings toward the debt! That’s a good chunk!🎉👏👏👏
I hear you on cutting sinking funds to prioritize debt payoff.
We want 2023 to be our debt free year, too. Still working on a payoff plan, though.
Thank you so much for watching & your support. I appreciate you❤ yes 12 months of determination we got this!
Love this breakdown!
Thank you so much for watching & supporting this channel ❤
Here for the journey…You got this! I’m also in my journey and have faith that I will complete it.
Here supporting you 💜💜💜
Thank you so much for watching and supporting this channel ❤
Incredibly straight forward video, and payoff plan. You’ve got this! ✨
Thank you so much for watching ❤️
I am so happy you found this video helpful, I’m excited to take on this challenge in 2023
This sounds like a good plan! Y’all can do it! Your handwriting is perfection!
Thank you so much for watching ❤️
I am super excited for 2023 and this debt payoff journey ❤️
This is a great video, I was in a similar situation in 2019 and I have been using Dave Ramseys bb steps and I have cleared a lot of debt. Still have car loan, and student loans but I am throwing 2,942 a month at it. It’s definitely not a fun journey but we’ll worth it. Best of luck!!!
Here’s my question - do you calculate the interest owed in your ACTUAL budget? Because how can your conclusion be sound if your premises are false? It’s wrong to advise people to budget for paying off debts without calculating interest!
Thank you so much for watching ❤
As mentioned in the video this does not account for interest we are doing the debt snowball method which is paying the smallest debt to the largest regardless of interest. This is the Dave Ramsey method that we will be doing monthly updates and adjusting the debt payoff plan as needed we are aware that interest rates are increasing which is why we are planning on paying this off as soon as possible.
New subscriber here! Love the videos 😀
Thank you so much for watching & welcome to our channel ❤
Great debt video ✨🦋
Thank you so much for watching & supporting this channel ❤
Great video on paying off your debt. We are working towards this as well and started right after Christmas Day. I always say, there’s no time like the present. I agree with your thinking of applying all extra funds towards the balances. Remember, the fed is going to raise interest rates again. Good luck on your journey of a debt free life. I’m new to your channel and like the direct approach you outlined. I’ve watch Dave Ramsey and his daughter as well for advice.
Thank you so much for watching ❤
Yes, I absolutely love that “there is no time like the present”. We are following the Dave Ramsey plan of paying the smallest debts to the largest regardless of interest rates. However with rising rates it has motivated us to focus and pay off at much as we can ❤
@@motherhoodanfinances that’s exactly what motivated me and my husband. I enjoyed your video and will continue to do this journey with you. Best wishes for a healthy, happy and prosperous new year.
Awesome video Lay! 🤗💕 Love your plan and I’m so excited to follow you on this journey! You got this girl, you’re going to kick debts butt in 2023! 🥳✨
Thank you so much for watching ❤
I am really excited to 2023 will be a very interesting year however I know we can do it ❤
Question?
1. Did you stop using all the credit cards so you can pay them off first?
2. If no, how do you workout how much you are supposed to spend in order for you not to have a financial setback?
I'm trying to pay off mines but theres always a setback and my savings are never enough for the setback, unforeseen circumstances. For example, 3 months ago thieves vandalized my car and smashed the back window. Had to pay $515 for that. Few days ago they stole one car tyre. So no matter how hard I try to save some money and pay off debts, there's always a setback. Very frustrating.
Thank you so much for watching ❤
So we currently are not using credit cards we stop that to be able to pay them off. The best thing that I can recommend is starting an emergency fun that way you have something to fall back on when life happens and you’re not adding more debt all along your journey❤
You’ve got this.
Thank you so much for watching & supporting this channel ❤️ I am excited to share our journey with all of you.
Love how you ‘ve laid out your plan and can really see your progress. If you don’t mind, I plan on doing the same. Great video.
Thank you so much for watching ❤️
I am so happy you found this video helpful, I am so excited to share monthly updates of our journey with you all!
does that take in to account the interest on your loans each month? love you determination an think you can def do it
Thank you so much for watching ❤
This is a starter plan we plan on doing and will update with you all every month and will update the payment plan if needed but we are doing a snowball method so it is not taking account interest only the smallest debt to the largest❤
@@motherhoodanfinances I know your doing the snowball but I highly recommend you learn a bit about how interest rates work. You have worked this out completely wrong. You cannot subtract your yearly minimum and say yep now we only owe 15k, when a large portion of your minimum actually goes to paying the interest. Also not looking at interest and minimum payments when your using that 6k is a massive mistake. You would be better off paying off cc 4 and 5 and pl 1 and freeing up $365 a month to go towards your snowball. Dave ramsey is good but the knowledge is extremely basic and there ARE better ways.
@@jadiecakes3241 true. if those of all credit card she can expect to pay upwards of 23% in interests
Great debt payoff plan👏 I have some debt I need to tackle myself. Thank you for the breakdown .
Thank you so much for watching ❤
I am so happy this video helped and you found helpful ❤
I really like how the pen you're using writes. Can you tell me what kind it is? Thank you :)
Thank you so much for watching ❤️
It is the Paper mate ink joy gel 0.7 💕
First off, you have such nice penmanship! Secondly, I’m in the similar boat this year, paying off 26k. You got this! 💪🏽💪🏽💪🏽
Update?? How is your journey
I think that’s a great plan! Inspiring 👍🏻
Thank you so much for watching and supporting this channel, I appreciate you❤
GO!GO!GO!GO!GO! 🎉🎉🎊💫🥳🙏🥰🥰🎀🎉🎉🥰🥳🙏💫
Thank you so much for watching & supporting this channel ❤
You've got this!! Can't wait to watch your success 🙂
Thank you so much for watching & supporting this channel ❤
Great video! I got a lot of inspo just from watching you plan to pay off your debt! I’m also on a financial journey and I just posted my first video yesterday!! 😊
New Subbie here! Great video and debt payoff plan.
Thank you for sharing this video!! I have one question tho : Won't the monthly min decrease each month?
Thank you so much for watching ❤
we are doing the debt snowball method so what that means is that even when we pay off the debt will take the minimum from the debt we just paid off and added to the next debt❤
Excellent plan! New Subbie here. ❤️
Thank you so much for watching & welcome to our channel ❤
All the best
Your handwriting!!! I wish
Thank you so much for watching & supporting this channel ❤
I'm so glad I found your channel. We also have exactly $29,000 left on our debt and I was curious to see what your plan is. New subbie here 👋
Thank you so much for watching ❤
Welcome to this channel, I am super excited to have you and hope this channel helps you along your journey ❤
Thank you for the video. You can do this. I am also following Dave Ramsey. I need to sit down and look at my debt and make a payoff plan. We were doing really good and then I started going to school. I pay cash upfront and then my job refunds me the money for school. I am hopeful I can sit down and get back on track.
I am trying to do the same! Great Video!
Thank you so much for watching ❤
You can do it, I have total faith in you ❤
I’m there with you! Ive got 32k in cc debt🤦🏻♀️😩
I’m doing the biggest apr first tho not the snowball
Grace on your journey! We are on the journey with you this year 💸✨️
Thank you so much for watching & supporting this channel ❤
What is that pen I need it lol
Thank you for this. Really good video walk thru. One thing, you didn’t take into account internet on minimum payments-that needs to be adjusted out, unless those are all 0%.
I love this method...and like the Dave Ramsey method... you'll definitely see results faster. With a couple of tweeks...as I feel it's flexible and you can interchange between the avalanche method.
I don't have any debts but I do have a YT channel...I focus mainly on savings challenges would love your support ☺️. Thank you
Use the debt spreadsheet from Vertex42 (it’s free). Since a lot of your amounts are similar in balances, you can use the spreadsheet to see which one to attack first to make the most bang. I had 2 balances within about $1500 of each other - I chose to go after the higher interest because it freed up more money from the monthly payment for my snowball.
Thank you so much for watching ❤️
I will definitely check that out, thank you for sharing 💕
Amazing video Lay! 🌟
I discovered your channel today and cannot wait to follow along on your journey! 🤍
Thank you so much for watching & welcome to our channel❤