Debt Snowball Calculator
So you’re ready to start on your path to becoming financial independent. So how do you get started? The first step is to start paying off your debt! This can seem a bit overwhelming at first. This is where a debt snowball calculator comes in handy. The debt snowball worksheet shows you how to pay off debt by creating a debt payoff plan.
The reason it’s called a snowball is because as you payoff a debt account you roll over those payments to another debt. This has a snowball effect and helps you pay down your debt faster. A good debt snowball worksheet will help you track your debt as you pay it off.
Why Is Our Debt Snowball Worksheet The Best?
If you look at the dave ramsey debt snowball template, you’ll notice it has you paying off the debt with the smallest balance to largest balance first. This means you’ll be paying more money than you should in total interest, because you are not paying the highest interest rate first. The debt snowball spreadsheet will put your debt in order and tell you the payment amount for each month. This makes paying off credit card debt and student loans a lot more manageable.
To get started list out all of your debt accounts with the minimum payment, interest rate, and the balance. Enter this account information into the debt snowball worksheet. Now you can view the payoff dates and see the impact of making extra payments will have on how soon you can become debt free. The video below will show you how to use the debt snowball calculator.
Debt Snowball Spreadsheets Help You Become Debt Free
Taking control of your personal finance is the first step to becoming debt free and put you on a path of becoming financial wealthy. The debt snowball calculator combine with an excel budget template spreadsheet will help you lay out a plan to improving your financial situation. For these money management tools to be effective you have to follow the debt reduction plan and a budget. This is not easy at first, but once you make a habit out of tracking your spending, it becomes a lot easier.
How To Use Debt Snowball Calculator
You can start by downloading the debt snowball worksheet. Next, determine what debt you want to payoff. A good place to start is debt that has a higher interest rate such as credit cards, medical payments, auto loans, and unsecured loans. After deciding what debt you want to add to the excel debt snowball worksheet, collect the minimum payment, APR, and balance. After collecting this information enter it into the debt snowball spreadsheet.
Now you’ll be able to view the debt snowball calculator excel dashboard. The dashboard will sort the interest rate by smallest to largest. You’ll be able to see the monthly payment each month and have the ability to add extra money each month. Each debt account will show the payoff date if you pay just the minimum payment and the payoff date for the debt snowball method.
The debt avalanche method starts by paying off the smallest debt first.