Are you looking to pay off debt and become debt free? This debt snowball calculator worksheet just might be for you. In the January 2019 the Consumer credit report released by the federal reserve stated the average credit card debt balance was just over $6,900. This goes to show you that you aren’t alone, in fact it’s the norm. The good news you’ve taken the first step of becoming debt free, which is realizing it’s an issue and wanting to do something about it. Before we jump into the snowball spreadsheet tool, there is something you should do prior to creating a debt reduction plan. The first thing is you want to create a budget. This will not only help you identify your current spending habits, but it’ll also help you determine how much you can each month to apply towards your debt.
What Is The Debt Snowball Worksheet All About?
Ever wonder how much you could save by paying off your debts sooner than later? Want to know how long until you’re debt free? The debt snowball spreadsheet takes all of the guess work out on what debt to pay off first. You may have heard of Dave Ramsey’s debt snowball calculator, which pays off the debt with the smallest to largest balance. In the picture you can see a comparison between the two methods. Using Dave Ramsey’s approach to pay off the smallest debt first, could cost you thousands and increase the time it takes you to pay off your credit cards. The debt tool from ourdebtfreelives.com was created by a finance expert that knows the most effective way to pay down debt.
Not All Debt Snowball Are Created Equal
Looking how big of an impact paying the right debt off first has on your total interest paid. This is why it’s important to find the right debt payoff calculator. With this debt repayment calculator can run a number of different scenarios to see the impact of adding extra payments or just making the minimum monthly payment.
How To Use Debt Snowball Worksheet?
- The first thing you’ll want to do is get a list of all your debts you want to focus on paying off. This can include credit cards, student loans, auto loans, personal loans, mortgage…
- Next you’ll need to have the following information for each one of your accounts. Personally, I would recommend using an company that provides you with credit scores. Creditkarma.com is a good one, because it’s free and easy to sign up. The nice thing about looking at your credit report you’ll have all of your debt accounts and all the information needed below.
- Interest rate (APR) %
- Current Account Balance
- Minimum Monthly Payments: For installment loans such as student loans or auto loans just use your monthly payment amount.
Making paying off your debt as easy as possible with this excel spreadsheet.
This could change depending on the payoff method of debt avalanche or debt snowball. The Debt Snowball Calculator shows the benefits of applying the payments of recently paid-off debts to other debts. By using debt snowball, you can stay motivated and encouraged as you work on your debt payoff. The debt snowball plan is a strategy to pay off debts in order 1 by 1 by rolling your payments over like a snowball from one debt to the next. Many people like to focus on accounts with the smallest balance first, also known as the debt snowball.
What is a credit card payoff calculator used for?
Before you start your debt snowball plan, it’s important to know some best practices and requirements: Here’s a great video showing you how the debt snowball calculator works.