A Painful Debt Snowball Update - YouTube

back when i started this channel  i said we had $220,000 of debt and  

it was gonna take us about  three years to pay it off.  

we're gonna pay off $250,000 worth of debt in  under three years because we're that awesome

well we did pay off that $220,000 in 40  months just slightly over three years i  

wasn't taking three things into account that  were massively important to our debt payoff.  

#1) when we first started i neglected to  include mauricio's undergraduate school loan  

he was in his last year when i started my  channel and while we had stopped adding to  

the debt i we weren't paying on it yet and  i didn't really take that into account in  

my overall total number #2) my brother and  sister-in-law's school loans that we co-signed  

on that we didn't know we would be paying  off for them and then #3) of course, interest  

i know so if i have done the math correctly, which  i gotta say don't always do the math correctly,  

but in total we are set to pay off three hundred  and eighty eight thousand three hundred and ninety  

dollars and yes that number keeps getting larger  for two reasons one the longer we take to pay  

it off the bigger the number gets and number two  when we refinance debts the interest rates change  

so that impacts the overall number as well so the  total we have paid off to date is 245 828 which is  

pretty freaking amazing until you start comparing  year to year so let's take a walk down memory lane  

and we started this whole process back in april  of 2016 and that first year we were kind of  

struggling a bit mauricio was taking odd jobs to  pay the bills and going to school full-time so  

in 2016 we paid off $43,757 dollars worth of debt  and in 2017 the following year we paid off $64,793  

worth of debt 2018 we paid off $79,681 now  that is the biggest number in this whole thing  

we really pushed it to pay off that amount  and the following year we had ramifications  

from that because i have said all along  if we cut down to bare bones we struggle  

immediately after it's kind of like the  binge diet is what i always equate it to  

if you cut absolutely everything out when you stop  you go off the chain and legitimately in 2019 we  

did because in 34 months those first 34 months we  have paid off a total of $188,231 and that's pretty  

amazing so in 2019 we paid off a whopping $30,574 and  

2020 is looking to be on par with 2019 and to date we have paid off $27,077.

so over the last two years  we've paid off just over well by the time this  

year is over about sixty thousand dollars and  the year before the last two years in 2018  

we paid off 20 000 more than that in one year so  over the last two years we have definitely lost  

momentum and looking back on it i know exactly  what happened we never actually increased our  

minimum mandatories on the debts we have left  so back in 2016 we had nine debts total and huge  

minimum payments and i don't remember exactly how  much our minimum payments were i could probably go  

back and watch a video about it but i'm not going  to but i vaguely remember them being around 4 500  

a month yeah that's a lot but mind you those  weren't the actual like minimum payments those  

were our self-imposed minimum mandatory the amount  i had drafted with the bank for each debt payment  

and we did that to kind of force ourselves into  making those payments and so we got into thinking  

about it and if we forced ourselves back then to  make those payments because we know how we operate  

we should probably do that again so  that's what we're doing now we're forcing  

ourselves to make bigger debt payments so right  now our actual minimum payments we're paying on  

two loans our actual minimum payment on the navy  federal credit union loan that was formerly the  

usaa loan that loan the minimum payment is one  thousand like forty seven dollars and we will  

start paying two thousand dollars a month on that  and then our other loan was formerly sally may and  

that is the loan we cosigned on and so we moved it  over into our name because sallie mae is kind of a  

pain in the butt and so we move that all over into  a loan with significantly better interest rates  

and our plan is we plan to pay that off as quickly  as possible but our minimum payment on that loan  

is 17 it's like 1649 or so and i have also set  that one at 2 000 a month because right now with  

molina and schooling and all of that and having  to pay you know um just under 1500 a month for  

molina for you know the school situation that  we have going on that's really the most we can  

commit to right now so in december i'm upping  our mandatories to start and honestly that you  

know four thousand dollars that we're paying  isn't as high as i would like but it will  

go up as molina's child care again goes down so  let me walk you through what we have left as of  

this very moment we have four deaths assuming we  make zero changes which is by the way not the plan  

we're like all re-energized to pay the rest of  our debt off quickly so i expect changes coming  

fairly quickly hopefully as soon as the schooling  situation shakes itself out but if nothing were to  

change at all we have the former usaa navy federal  credit union loan and that is at eighteen thousand  

two hundred and twenty eight dollars with  a projected payoff date of august 2021.  

the second one we have is also navy federal  credit union which we moved over from sally may  

and that is my brother-in-law and sister-in-law's  school loans that we're paying off for them the  

ones we co-signed on and that is 48 749  with a projected payoff date of may 2020.  

the third debt we have is a personal loan for  19 625 with a projected payoff date of october  

2022 and we're not actually paying anything on  that should we you know finish our debt pay off  

early then we'll jump right into it or we may wrap  that up in the sale of this house and the fourth  

thing that we have to pay off is mauricio's school  loan which is fifty three thousand two hundred and  

seventy six dollars and we'll begin to tackle  that in december of 2022 as we can because by  

that point mauricio should be in graduate school  full-time which means he will have quit his job  

and will be living on just my income so there will  be a stall between when we pay off our our last  

debt and the the debt that we're going to pay off  for mauricio so the total we have left to pay off  

is 139 878 dollars so right now with child care  the way it is i don't really see us making any  

changes in the very immediate future molina does  start back to school school like in person school  

in january but the governor here in virginia did  just shut some make some changes yesterday and  

bring shut some things down especially in the  area that i live in the the you know the the  

illness that shall not be made on youtube or you  know youtube demonetizes your video or puts it in  

video purgatory that is really big here lots of  people are sick lots and lots of people who knows  

what's gonna happen come january but even if she  goes back to school it's only two days a week and  

so i don't know what the sac program will do for  her and how much they'll cost to keep it going but  

should things change every little bit of change  x-ray will be reflected in our debt payment i've  

learned our lesson mauricio's learned his lesson  and you know as our budget changes we're going to  

reflect those payments and our debt payoff changes  immediately and you know mauricio and i have  

always said we're a little more relaxed we don't  believe the debt payoff has to be a sprint if it  

were a sprint we could have legitimately paid this  off significantly faster but you know we know us  

and if we make this a sprint it won't go well for  us and we did try and make it a sprint in 2018 and  

it backfired so on a side note you're gonna see  my monday videos i'm going to be using them to  

kind of keep me in line the whole reason i  started this channel is to document our debt  

payoff journey well it's never deviated from  that i really would like to get back into you  

know here's where the month started here's where  the month ends up and you know celebrate my debt  

payments along the way every single month so i'm  gonna on my monday videos i'm going to definitely  

be doing you know our personal debt journey and  and everybody seems to enjoy those the most so  

i'm gonna go ahead and keep doing those also  during the week i'm going to do some of the  

more videos that i'm interested in doing like  the the fun videos you know like i'm going to  

have a video cleaning out my freezer because i  did that and it was super fun and you know but  

you guys may not be interested in those so i'm  not going to be releasing those to my audience  

so what i want you to do if you are interested  in seeing more than like our debt free journey  

then subscribe to my newsletter so that you will  be alerted to all of the other videos that i put  

up and my newsletter it's not spammy in fact  i generally like write a blog post length like  

thing i learned that that week it comes out every  other week generally and it comes you know when  

you first download it you get a freebie and it  has you know a lesson i've learned my video and  

blog updates and then a product that i'm loving  using at the moment like for example in my last  

newsletter i gave like a step-by-step tutorial  on how to save tons of money using the rakuten  

website which a lot of people don't know they use  the plugin to get the cashback but i'm talking  

about going to the website and searching for  a particular item so i went through that like  

step by step how do you do that and i used an  example of like a ring floodlight which causes  

you by doing that you save 75 by using the rakuten  website and then you save an additional like 20 in  

cash back so yeah it's totally worth it so since  you all are like debt snowball-minded like i am  

i use the undead debt snowball calculator and  i'm going to point you to a video right over  

here that i put up on how to use that if you'd  like to use that so i'll see in the next one