2020 Mid-year Debt Payoff Recap

by girlseeksjoy · Published August 5, 2020 · Updated January 22, 2021

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Here is our mid-year debt payoff recap toward paying off our six-figures of debt, and a few lessons that I’ve learned along the way on how to avoid debt.

2020 Crushed Our Goals

We started 2020 with a lofty goal of getting our debt under $100,000, which would mean paying off $60,000 this year. We knew this was a scary stretch goal, because that meant we would need to pay $5000 each month to hit it.

We started the year strong, hitting that goal for both January and February, paying $10k right out of the gates.

2020: The Year of Covid

Then March hit. The world shut down. And so did my husband’s chiropractic clinic. To be smart, we decided to stop our debt snowball. Devastation.

Following a month of closing the office to let the dust settle and see what exactly was going to happen in the world, we opened the clinic back up, but only half time. And continued to keep our snowball paused, and stack away as much money as we could. Because, who knows what is going to happen, and for how long…

After 4 months of this, my husband finally felt it was safe to put extra money toward our snowball again, and we came out guns a’ blazing.

Back at it!

This month, we were able to pay $6000 extra to restart the debt snowball! Let me just tell you that none of this is lost on me, I am so grateful we were able to do this.

But let me also say this… I am absolutely disgusted by the fact that we paid $6000 toward our debt this month.

What?!

Imagine what we could do with $6000 extra? That is a full-time income extra a year we would be paying… $72,000.

Debt sucks.

Debt sucks. It’s awful. If you haven’t climbed into debt yet, or you are ready to get the hell out of it, please be open to the following words of wisdom from a girl who has been living this lesson for the last 9 years:

1. Be patient – you do not need to be living in the same caliber of a house that your parents are living in NOW. They took a long while to get there. I feel that people seem to get out of college these days and want to buy a house immediately. But not just any house… a really nice house. You do not need to drive a Range Rover to prove you have worked hard. You do not need the matching living room set just yet.

Be patient. Realistically, if you need to buy these things on credit, you can’t afford it. Move at the speed of cash.

2. Don’t make excuses– in all the years I’ve been listening to Dave Ramsey talk, no matter how many people say they are different and that their situation is unique, he NEVER will suggest going into debt. Ever. So, if you truly do not want to go into debt… you need to figure it out.

If people can figure out how to go through med school debt free, you can figure out how to buy a car without going into debt.

*FYI, this is referring to school and consumer debt. Not mortgage. He’s “less upset” about a mortgage (15-year fixed with a payment that is no more than 25% of your take-home)

3. Stop comparing yourself/stop showing off – Just. Stop. Who CARES how big your TV is? Who cares if you don’t have a fancy {insert fancy brand here}? Who actually cares?! No one that you need to worry about, is who.

This is your life. You are the person who needs to deal with the consequences of getting stuck in a debt trap. Not the person who made a snarky comment about the outdated iphone that you use to make calls on. The same person who paid $600+ for a phone, but told you they can’t make it to Christmas this year. Where a person’s money is, is where their priorities lay.

Recognize that when people seem to care that much about how you spend your money, it’s their shit, not yours. Smile, and move on.

4. Prioritize your values -What is important to you to spend money on and what can you let slide? Take the time to sit down and think about this.

For my family, we invest in our health. We spend a lot on groceries to eat clean. I also spend a fair amount on clean beauty products.

Let me tell you what I don’t spend a lot on. I DON’T spend a lot on clothes. Most all of my clothes are from thrift stores or Old Navy. We DON’T spend a lot on cars (safety is important, but we’re ok with older less sexy models). We DON’T spend a lot on furniture. Most of what we have is from garage sales or found free on the side of the road.

Figure out what is important to YOU and forget the rest.

Current debt amount as of July 2020: $143,000 (original goal for 2020 is to get under $100k)