It’s time for the December 2020 Debt Snowball Update. Let’s see how our debt snowball journey went for the month of December.
Our budget for December looks a little bit different because of the Christmas holidays and bringing in the new year.
The grocery budget got absorbed into our Christmas spending this month. The total amount of money that we spent for Christmas was $773.25.
That may seem like a lot but, we save for Christmas throughout the year.
Every time we get paid, we transfer money from our checking account to our Christmas savings account.
I made $681 this month from my side hustle. Since it was the end of the year, I didn’t have any expenses so I was able to transfer $543.48 into our checking account.
Debt Snowball Update
In November, we paid off $1,789.29.
We started December with a balance on our car loan of $2,590.67.
Our goal was to pay off our car loan in December. Did we get it done? The answer is, yes!
We were able to pay off our car loan in December and we already have the title. I’m glad to get that off of our plate so that we can move on to the next debt.
The next debt is our home loan. We started off December with a balance of $188,108.50. After paying our mortgage of $1,265.64, our balance is $187,876.33.
In 2020, we paid off a total of $15,423.61. I think we did very well, given the circumstances and I’m excited about the amount that we paid off in 2020.
There are a few goals that we want to set for 2021 and reach them by the end of December.
The first goal is to pay off at least $25,000 worth of debt this year.
The second goal is to save enough money to purchase a car in cash.
The last goal is to save an additional $10,000 for our home maintenance and repair fund.
Now, I want to hear from you. How did your debt snowball journey go for the year 2020, and how did you do in December with the holidays? Let us know in the comments.