Using a spreadsheet designed like a debt snowball, you can get your debt under control
It may sound harsh to devise a strategy for paying off debt, especially if you do not come from a financial background. But it is possible to do so and spreadsheets make the process much simpler. If you know your way around using a spreadsheet, you can develop a strategy for paying off your debt. The snowball method is a common approach, and downloading one of these debt-snowball worksheets will help you relieve your financial burdens. One of the options on this list will guide you through selecting a technique for paying off debt by contrasting several approaches, such as the snowball method, the avalanche method, and others. You are provided with a spreadsheet already created when you use a template. Technically speaking, these are spreadsheet templates that you may use with either Google Sheets, OpenOffice Calc, or Microsoft Excel. The only things you require are downloading the template and entering a few numbers into the spreadsheet; the spreadsheet will handle all of the mathematical work for you. This readymade spreadsheet also contains the appropriate formulae to perform all the calculations. A few of the presented choices also include strategies for dealing with your loans, a multiple credit card payoff calculator, and suggestions for reducing other types of debt.Vertex 42 Credit-Repair Spreadsheet and Debt Reduction Snowball Calculator
After entering all of your debts into the Debt Reduction Snowball Calculator spreadsheet from Vertex 42, you will have the opportunity to get some knowledge from the spreadsheet by selecting from a variety of approaches to debt reduction. This spreadsheet offers supplementary data regarding debt reduction options that use a more significant number of available resources. After entering your information, select several strategies. This will help you see how each one would work to pay off your debt and determine which one would be best suited for you in particular. This spreadsheet provides a payment plan that you may print out for convenient reference. Do you need assistance in repairing your credit score? Download the Credit Repair Edition of the Spreadsheet for Reducing Debt to pay down each credit card to particular amounts determined by your FICO score. This will be the first step in reducing your overall debt. When you have accomplished that objective, the spreadsheet will instruct you on how to proceed with paying down your credit card debt.Squawkfox Debt-Reduction Spreadsheet
With the help of this free Debt Reduction Spreadsheet, the author of both the spreadsheet and the Squawkfox blog, Kerry Taylor, could pay off $17,000 in student debts in just six months. To get your current total debt, average interest rate, and average monthly interest paid, start by inputting your creditors, current balance, interest rates, and monthly payments. Additionally, the spreadsheet will provide the total number of monthly payments required for all of your loan accounts. To use the components of the spreadsheet that simulate a debt snowball, you will need to have a general notion of how much money you will put away each month to pay off debts such as credit cards and other loans. Enter the amount you intend to use to reduce the debt. The spreadsheet will tell you what percentage of that amount should be applied to the account with the highest interest rate.DebtTracker Spreadsheet
DebtTracker is admittedly not quite as elegant as the other spreadsheets on this list. However, it has fantastic features that allow you to sort and view your debt, which is most helpful. To use the DebtTracker spreadsheet, you must ensure that macros are turned on in Excel. They come prefilled with some data to get an idea of how the worksheets function. The page where you can download them also contains an instructional video. You should enter all of your obligations into the spreadsheet to get started. This should include all your loans, credit card balances, and mortgage information. After that, you will be able to adjust the view by sorting the debts according to the category, interest rate, minimum payment, and a variety of other criteria. Suppose you follow a specific strategy to eliminate your debt, like the debt snowball. In that case, advanced sorting can be helpful to you. The DebtTracker comes with seven worksheets, one of which is titled "Paydown" and features a graph for monitoring the effects of paying off a debt for a certain amount of time.Debt Prioritization Worksheet From Wise Woman Wallet
Suppose you're having trouble selecting a strategy for paying off your debt. In that case, this bare-bones spreadsheet from Wise Woman Wallet, free in exchange for your email address, can provide you with a bird's-eye view of the various possibilities available to you. You need to provide some basic information about each of your loans, such as the starting balance, the current balance, the interest rate, and the minimum payment. The next step is to use filters to sort the data according to your existing balances (for the snowball approach) or the interest rate (for the avalanche method). The spreadsheet that comes with Wise Woman Wallet also gives you the option to think about two other strategies. When you use the debt volcano approach, you prioritize paying off the debt that causes you the most stress or anger. This can be a credit card balance with a high-interest rate or a "buy now, pay later" charge for a present you gave your ex. In the hybrid technique, you mix different strategies, such as beginning with a snowball but moving to an avalanche when two debts have comparable balances but one has a higher interest rate. For example, you might begin with a snowball but move to an avalanche when trying to pay off debt. If using these spreadsheets leads you to conclude that you require additional assistance in managing your debt, you may want to investigate the availability of debt relief services in your area. Nevertheless, this is not a step that you should take lightly: The process of settling your debts could take several years, and during that time, your credit score could take a knock, in addition to having other possible repercussions.Frequently Asked Questions (FAQs)
What exactly is meant by the term "snowballing" debt?
In the debt snowball technique, your obligations are ranked in order of importance, from the least significant to the most significant. You will begin by making the minimum payment required on each of your bills. After that, you will spend any extra money available toward paying down the debt with the smallest balance each month. Once that is paid off, you will take the amount you were paying on the lowest debt and apply it to the minimum payment for the obligation subsequent in size to the one you just paid off. The faster you pay off one debt, the faster you'll be able to pay off the rest, creating what's known as a "snowball effect."What exactly is meant by the term "debt avalanche method"?
The debt avalanche strategy involves prioritizing your loans based on their interest rates, moving from highest to lowest. Every month, you will make the minimum payment required on all your accounts. Then you will put any additional cash you have toward the obligation that has the highest interest rate. You will then apply that payment toward the obligation with the next-highest interest rate when you have finished paying off that loan. You will continue in this manner.How do I decide on a debt-repayment plan?
Two of the many methods available to help you get out from under your financial obligations are the debt snowball and the debt avalanche. You may decide to prioritize other obligations first, depending on the type of debt, the risks associated with failing to repay, or the mental stress that certain debts bring. One possibility is that you will prioritize some debts above other debts. Suppose you are having trouble selecting which course of action to take. In that case, you may consider speaking with a debt or credit counselor.