Are you ready to start down the path of becoming debt free? The debt snowball spreadsheet is the perfect tool to get you started on your path to becoming financial independent. The debt snowball calculator has built in features that allow you to pay off your debt as quickly as possible. It’s always a good idea to create a budget using the budget
Why Use The Debt Snowball Worksheet
Did you know the average American has $6,921 of credit card debt, with an average APR of 26.57%. This means the average American is spending $1,839 in interest on just credit cards. The average student loan debt is at $32,731 with an average APR of 5.3% for a total of $1,734 in interest paid. This means you are paying over $3,500 a year in interest. This is where the debt snowball spreadsheet comes into play.
The debt snowball method works by paying off your highest interest rate debt first. Once a debt is paid off, you then apply that same monthly payment to another debt in order to pay off your debt as quickly as possible. The debt snowball worksheet creates a debt reduction plan for you and will show you the amount of money you’ll save over the course of the loan. This debt snowball calculator was created by financial professionals, in order to create a debt reduction plan that’ll pay off your debt as quickly as possible.
Dave ramsey uses the debt avalanche method, which starts off by paying off the smallest balance first. The debt snowball calculator excel allows you to save money in interest and pay off credit cards faster.
How Does The Debt Snowball Calculator Work?
The first thing you need to do is download the debt snowball spreadsheet. Once you have download the debt snowball calculator you’ll be able to get started.
Adding Debt Accounts to Excel Spreadsheet
Next we need to gather information about the debt accounts. The best way to do this is by going to creditkarma.com and gathering all of your credit cards, auto loans and mortgage. You’ll need the minimum payment, Interest rate APR, and the balance. Start by adding this information to the debt snowball calculator. The Excel spreadsheet will automatically display your accounts with the highest interest rate first. After entering all of your debt accounts, you’re now ready to view the breakout.
Review the Debt Reduction Plan
Start by going to the main debt snowball worksheet dashboard. On the left side you’ll see the debt payoff date and a list of all your debt accounts ordered from smallest to largest APR. You’ll have the option to add extra money to the minimum payment. The extra payment will change the debt payoff date, depending on how much extra money is applied.