YNAB Workshop - Create a Debt Paydown Plan

In this workshop, we’ll discuss how to create a debt paydown plan. We’ll review which things you should focus on first, and how to decide how much you can afford to budget toward debt.
Check out this handout for a review of this lesson! -
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[@fallondavis747]

I've been following the YNAB way of paying off my debt. And I payed off the last of my credit card debt last week! So grateful for all that you do for people, YNAB!

[@YNABofficial]

Congratulations, Fallon! 🥳 So excited for you! - Ben M

[@debbietampasheher3682]

Thank you ynab! I started 34 days ago, just ended my free trial. I all of a sudden have $613 saved for emergency fund. Another $443 for my dog's unexpected surgery! I had already saved my $1k emergency fund. Even though I'm using the $443 for the surgery it is there for something that is a priority. I had even paid off my lowest credit card which was $330 being very aggressive. Maybe I shouldn't have but it was before I found out my dog needed the surgery. This is huge! I still have a lot to go. I have a lot of debt, $72k including being sued by capitalone. Ugh. But without budgeting my dog may have been put down. You're saving my dog's life. I never made big purchases. Just the little things that just add up like crazy. I feel like I'm starting to get in control. I can't thank you enough

[@reealitey]

how are you doing now? I see that this comment is 1 year old

[@MrCooL-yt7kz]

Ynab is too expensive for what it does . There will be better competition soon .

[@nosirrahm]

How is it going?

[@nosirrahm]

@@MrCooL-yt7kz - you mean for you. I happy to pay the cost because it pays the people working on the development, training, etc.

[@louamato6332]

I seriously love this program. My only wish is that it added an on board debt snowball calculator and plan generator. The way I'm attacking my debt is I've figured out my total of all minimum payments and use a separate debt snowball android app. It tells me how long I will be debt free and how much to pay to which accou t, paying off lowest balance first. Every month i commit the same amount to debt snowball so I dont have to go back and forth setting goals. They are already set based on the fixed amount I commit to my snowball. And, of course, no more spending on credit. Your points about saving for real expenses is spot on. Thank you again.

[@YNABofficial]

We're doing some research in this area now, Lou! I'll pass this request along to our designers.

[@secondbase4sr3]

What app for the debt snowball are you using? That would be amazing for YNAB to add. Especially if you can put interest rates that auto calculate

[@BeeinTX]

You Need A Budget (YNAB) Please! Your software would be perfect if y’all did that!

[@pawebb]

Undebt.it works with YNAB (cost associated). You enter in all of your debts and it creates a snowball plan for you.

[@sofondadavis5028]

What I truly like about YNAB is teaching how to responsibly use CCs and understanding sinking funds (embracing true expenses).

[@ericjones3920]

I like the mental aspects of this program. Great video. Thank You.

[@rebeccajanegoddard]

You're so right with embracing true expenses, I had always believed throwing everything at my debt would fix the problem but the a true expenses would crop up and I was back to step 1 so I make sure I save too

[@josephwhite9628]

This vid has been really helpful thank you

[@carlatoppins8567]

Awesomeness! Great Tool, cuing and illustration. So simple and easy to understand the way you break it down. I am a visual learner and this tutorial 'knocked it outta the park' 👍:) for me. Thanx for a beautiful Ray of Sunshine 🌞 at the end of my debting tunnel.😉

[@YNABofficial]

So glad this was helpful, Carla! You've got this! 💪

[@OneOfDaKine82]

Awesome 👏🏼. I don’t like my budget with cents I just rounded it off to the neatest dollar

[@nosirrahm]

How do you do that when you’re tracking spending?

[@TMaine12483]

Middle Georgia

[@lindafickes6435]

OREGON

[@coldkittn]

Shouldn't the student loan(s) and auto loan be added to the accounts sidebar as tracking accounts to help with the debt plan?

[@YNABofficial]

You can if you want! The only thing that's strictly necessary is your category for handling the payment. If you'd like to add the loans as tracking accounts, you can do that too. docs.youneedabudget.com/article/181-tracking-loans

[@lindsayransom5773]

From Yellowknife NT, Canada

[@cristelmariebuenafe]

✔️

[@444dylanblue]

With true expenses are paying them every month until desired number for each category or does it equal the 1000 ER fund

[@nosirrahm]

True expenses are separate from the emergency fund. You are paying towards them each month - especially for those expenses that are quarterly, annual, etc. otherwise you won’t have month when that bill arrives.

[@familynichols6225]

Do I age my $ & how much before starting an aggressive debt snowball?

[@junebuckley4155]

June from Oakland ca

[@maxonmendel5757]

Is this NYNAB or YNAB4?

[@YNABofficial]

nYNAB!

[@maxonmendel5757]

@@YNABofficial cool. I dont own a PC so I only use the app. I'll probably never get to use YNAB 4

[@deannemackness213]

My unsecured loan of $4100

[@aris9560]

"I consider the man that conquers his own passions as braver than the one who conquers his enemies. The toughest victory is the one against yourself" - Aristotle

[@pawebb]

I love YNAB, but it's a bad idea to budget True Expenses before debt. If you are over $19k in debt you shouldn't be budgeting for things like trips.

[@YNABofficial]

Maybe not extra vacations, but certainly for things like auto maintenance. Otherwise, you'll end up further in debt! Gotta stop the bleeding first.

[@pawebb]

@@YNABofficial Even so I still don't think you need to do sinking funds for things like maintenance. We are working on paying off debt. The only thing we budget are the must haves that month. Things like mort, electric, food, and so on. Now if my wife's car needs an oil change, then I would include that in the budget for that month. If something unexpected comes up and I don't have it in the budget and can't wham it from other categories then it comes out of the EF. Then next month I rebuild my EF. I think to stop the bleeding, the first step would be to stop using and cut up the credit cards. Stop using debt. Get on a solid budget and live below your means. We've gone from a revolving CC bill of ~$5k/mo and $120k in debt down to our last $13k in debt and living off the first paycheck of the month by thinking that way and using YNAB. We will be debt free other than our house Oct 4th! #ynabwin #debtfree

[@sherryhedger9762]

@@pawebb I think this sounds doable. I might have to try this strategy. DEBT BE GONE!!!

[@MrMEGSWONETWOTHREE]

Paul Webb congrats!

[@alexanabolic5099]

@@pawebb I like your comment, but lets take city taxes for example, they come as 3 big payments per year. What difference does it make to put it in true expense vs cash flowing it 3 time a years? I know I will switch to winter tire and do an oil change at the same time. I know everybody needs dental care once a year. I don't see the benefit of cash flowing it over putting in in true expense. It is the same, but has the chance to create issue if they comes all at the same time. I am not trying to be a jerk, but I would like to understand your point