How to speed up your debt snowball by upping your initial contribution or your monthly payment; So let’s get to it! Let’s set up your plan so you can finally GET OUT OF DEBT! 1) Download the Free Debt Snowball Tool. Just click the link below and download the Excel sheet. Then, we’ll start entering your numbers! Have you ever heard of the snowball method? It's a way of planning steps you'll take in order to pay off your debt. In order to do this method, you'll need a debt snowball spreadsheet (download for FREE) and a debt snowball calculator. A lot of people swear by this method because it's extremely effective. What Is The Snowball Method Of Paying Off Debt? Using the debt snowball spreadsheet is one of the best and easiest way of paying off your small debts. It has a calculator that calculates the time you will take to pay down your debts and become debt free. Oct 10, 2018 Debt Snowball Spreadsheet & Calculator Free Download I just was making some updates to our budgeting templates page where we have a bunch of free Excel and Google Doc spreadsheets available. While I was working on it and getting a few new ones added to the page I stumbled upon this Debt snowball calculator for Excel and it is really cool tool.
Vertex 42 Debt Reduction Snowball Calculator and Credit Repair Spreadsheet
The imitation of christ by thomas a kempis pdf. You can learn something from the Debt Reduction Snowball Calculator spreadsheet from Vertex 42 when you choose between different debt reduction strategies after all your debts are entered.
This spreadsheet includes additional information about those strategies with more resources for reducing debt. Enter your information, then select the different strategies to see how each would work for paying off your debt. This spreadsheet includes a printable payment schedule.
Need help repairing your credit? Download the Debt Reduction spreadsheet, Credit Repair Edition to first pay down each credit card to specific levels determined by your FICO score. Once that goal is reached, the spreadsheet shows you how to start paying off all credit card balances.
Use the snowball effect to eliminate your credit card debt and other consumer loans | Updated 8/1/2019
How fast can I get out of debt? How much can I save in interest payments? That is what our Debt Reduction Calculator can help you figure out. Getting out of debt is not easy, but with a good plan and firm determination, it is entirely possible. The debt snowball calculator is a simple spreadsheet available for Microsoft Excel® and Google Sheets that helps you come up with a plan. It uses the debt roll-up approach, also known as the debt snowball, to create a payment schedule that shows how you can most effectively pay off your debts.
Learn how you can save $100's or even $1,000's of dollars. One of the most powerful things about this spreadsheet is the ability to choose different debt reduction strategies, including the popular debt snowball (paying the lowest balance first) or the debt avalanche (paying the highest-interest first). Just choose the strategy from a dropdown box after you enter your creditor information into the worksheet.
Watch the Demo Video!
The first step in a debt snowball plan is to make a budget, then stick to it. The more you can squeeze out of your budget to increase your debt snowball, the faster you'll reach your goals.
You should consider others financial goals and risk factors besides just paying off debt as fast as possible. Free kb software. But, after you've decided what you can contribute to debt payoff each month, enter that amount into the calculator as your total Monthly Payment to see how long it will take with different strategies. Continue reading below for more information about the various debt reduction strategies.
Debt Reduction Calculatorfor Excel, OpenOffice, and Google Sheets⤓ Download
Include up to 10 creditors. Purchase the extended or pro version to list up to 20 or 40!
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Need to list more than 10 creditors? Get the new Extended version that lets you list up to 40 creditors. For the price of a good lunch, you can figure out how to save yourself hundreds or thousands of dollars!
Note: The download includes an extended version of the credit repair edition for listing 20 creditors, and a link to a Google Sheets version for listing up to 20 as well.
DescriptionWhat users are saying about this template
'Just wanted to thank you for the debt reduction calculator spreadsheet. It has helped me to get my debt under control and I will be debt free with the exception of my mortgage in a couple months. I started with about $42k of debt and will have paid it off in a little over 2 years with the help of the spreadsheet and insane budgeting.'- Lisa
Use our debt snowball calculator to help you eliminate your credit card, auto, student loan, and other debts. Easily create a debt reduction schedule based on the popular debt snowball strategy, or experiment with your own custom strategy.
In the first worksheet, you enter your creditor information and your total monthly payment. You'll then see a summary of when each of the debts will be paid off based on the strategy you choose.
The second worksheet is a payment schedule for you to print to keep track of your progress. You can also see how the snowball increases as you pay off your debts.
A Snowball Growth Chart lets you see how the snowball increases and your interest due decreases over time (only in the Excel versions).
You may also want to check out the Credit Repair edition of this calculator, which is designed to help improve FICO scores by lowering the balance-to-credit-limit ratio of individual debts.
Debt Reduction Calculator (Pro Version)
This license is also available via the Financial Planner's Template Pack
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DescriptionWhat users are saying about this template
'We have multiple rentals, and so mortgage loans. We were paying down each loan, distributing our liquid cash among all the loans evenly. When we found the debt reduction calculator we ran multiple preprogramed scenarios, and a couple of our own and discovered the optimum method for us. The Debt Reduction Calculator saved us hours of time, a quarter of a million dollars and will result in our paying off all loans in 1/2 the time. Thanks for sharing a great way to evaluate and strategize debt reduction.'- Morgen Kimbrell & David Hayhurst
The Pro version of the calculator serves two main purposes:
1. You can list more than 10 creditors
One of the included files lets you list up to 20 creditors, and if that isn't enough, there is also a version that lets you list up to 40.
2. The Commercial Use License allows you to use the spreadsheet in your business.
- Unlike the free version, which is allowed only for personal use, you can use the pro version to help clients that you are advising.
- The templates includes a section at the top to list your client's name and the preparer's name and address (see the screenshot).
- You can use it to print reports or create PDF reports, but the commercial license doesn't permit sharing the actual spreadsheet file.
Free Downloadable Debt Snowball Spreadsheet
- Bonus Spreadsheet: The pro version includes a commercial license of the Credit Repair edition.
Using the Debt Snowball Calculator
Follow these simple steps to use the debt snowball worksheet:
How Does the Snowball Effect Work?
The snowball effect is the idea that a snowball grows as it rolls down a hill. When applied to debt reduction, the snowball effect refers to how your extra payment grows as you pay off each debt.
As defined above, the snowball is the difference between your total minimum payments and your total monthly debt payment. The total monthly debt payment remains the same from month to month. The snowball is the extra payment that you will make on your current debt target.
After you pay off your first debt, you no longer need to make the minimum payment on that debt. So, that payment amount gets rolled into your snowball. Your new larger snowball becomes the extra payment that you apply to the next debt in the sequence.
There are times when your snowball is larger than the remaining balance on your current debt target. In that case, the spreadsheet automatically divides your snowball between the current and next target.
related blog articles
• Is Debt Payoff a Good Investment? • What Debt Reduction Strategies Do You Use? • What is a Debt Snowflake? • How to Calculate the Monthly Payment to Reach Your Payoff Goal • 42 Effective Ways to Save Money Debt Reduction Strategies
This section describes the different strategies that you can choose within the debt snowball spreadsheet. Each of these strategies has to do with the order that you target your debts with your snowball.
Unless you choose the 'No Snowball' option, ALL of these strategies make use of the snowball effect described above. For more information, see Dave Ramsey's article on the debt snowball effect, or read his book, 'The Total Money Makeover'.
Variation on the Debt Snowball Strategy
If you choose the 'Lowest Balance First' method, and two of your balances are roughly the same amount, but have very different interest rates, you might want to switch the order that you pay them off so that you pay the higher rate first. It might not make much difference in how long it takes to pay them off, but it could make a difference in how much interest you end up paying.
To use this approach in the worksheet, you'll need to choose the 'User-Specified Order' methods described above.
Stair-Stepper Strategy
The stair-stepper strategy, integrated into the Google Sheets versions of the debt reduction calculator, was devised by Carlotta Thompson (carlottathompson.com). It is a clever compromise between the Lowest Balance First and Highest Interest First strategies.
In this approach, the debts are grouped into categories based on the balance ($0-$2500, $2501-$5000, etc.). Beginning with the lowest balance category, you pay off the debts from highest to lowest interest rate, then move on to the next higher balance category.
Cash Flow and Liquidity Considerations
As you pay off debts, your net cash flow increases, and that extra cash is what causes your debt snowball to increase. Credit cards are typically the first debts to pay off because of their high interest rates, but cash flow is another reason to target the credit cards first.
A credit card payment is usually calculated as a percentage of your balance. That means that as you pay off your credit card balance, your minimum payment decreases. To see how that works, download the credit card minimum payment calculator.
Unfortunately, the debt reduction calculator only assumes a fixed minimum payment, so you don't see the debt snowball gradually increasing as you pay off credit cards. But, if you are concerned about cash flow, remember that paying off credit cards (or other debts with a decreasing minimum payment) gives you an immediate increase in net cash flow.
On the other hand, most auto and home loans have fixed payments. So, you don't see the increase in cash flow until the entire debt is paid off (or if you refactor the loan to lower the minimum payment).
This brings up the concept of Liquidity Risk, as explained in my article 'Is Debt Payoff a Good Investment?' Paying off debt decreases your liquidity (the availability of cash or liquid assets). A decrease in liquidity is a risk because it reduces your ability to pay unexpected expenses or to make a timely investment.
As you make payments on your credit card or other lines of credit, the liquidity risk is lower because you can quickly withdraw the money again if necessary (assuming your credit isn't frozen). That would increase your debt, of course, but it lowers the risk of being unable to keep the electricity running. On the other hand, if your extra cash is used to pay off an auto loan, you can't just get another loan in a couple of hours.
What does this have to do with your debt snowball strategy? It is just another reason why you may want to customize the order that you pay off your debts.
Warning: It may be tempting to put your full financial strength into paying off your debts. Be careful about doing that. You need to balance your debt reduction goals with the need for an emergency fund and other important financial goals. In these cases, it can be useful to seek the advice of a qualified professional.
Debt Reduction ResourcesFree Debt Snowball Spreadsheet
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Help us help others break free from the bonds of debt by spreading the news about this free debt reduction tool. Mixed in key pc. Link to this page on your website, in your blog, via Facebook, etc.
Have a Success Story? We would love to hear it.
A big thanks to Donald Wempe for motivating me to create the original version of this spreadsheet, and for his great suggestions and feedback! And a big thanks to the many others who have offered suggestions and feedback since then.
Disclaimer: This spreadsheet and the information on this page is for illustrative and educational purposes only. Your situation is unique, and we do not guarantee the results or the applicability of this calculator to your situation. You should seek the advice of qualified professionals regarding financial decisions.
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