Debt Reduction Snowball Calculator |
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Debt Reduction Calculator for Excel
Use our free Debt Reduction 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 using this free Excel spreadsheet. The first worksheet is a simple calculator where you enter your information, choose your total monthly payment, and see a summary of the results based on the strategy you choose. The second worksheet is a payment schedule designed for you to print so you can keep track of your progress. You can also see how the snowball increases as you pay off your debts. A big thanks to Donald Wempe for the motivation to create this spreadsheet, and for his great ideas! |
Cost: Free ($0.00) File Type: zipped .xls Size: ~750 KB Version: 1.0 Required: Microsoft Excel 2002(XP), 2003, or 2007 No Installation, No Macros, Ad-Free Technical Support: Help support Vertex42.com (Not Tax-Deductible) |
Note: 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.
This is how the spreadsheet works:
First, enter abbreviated names for your the credit card or lending institution, the current balances, and the interest rate information for all of your current debts (including home equity lines of credit or second mortgages).
Next, enter the minimum payment you will make each month for each debt. You may need to verify with your lending institutions what your current minimum payments are. Also, keep in mind that your minimum payment may change over time, depending on interest rates or other issues.
Then, choose the maximum monthly payment that you can pay each month towards your debts, based on your home budget. The difference between the total minimum payments and your total monthly payment is your initial snowball. This initial snowball, or "extra payment", will be applied to the first debt, depending on your chosen strategy.
When your first debt is completely paid, the remainder of your snowball is then applied to the NEXT debt, and so on, until all the debts are paid.
This section describes the different strategies that you can choose within the debt reduction spreadsheet. You may also want to see our Credit Card Payoff Calculator for more information.
Unless you choose the "No Snowball" option, ALL of these strategies make use of the snowball "effect" where after you pay off your first debt you roll that payment into helping pay off the next one. For more information, see Dave Ramsey's article on the debt snowball effect, or read his book, "The Total Money Makeover".
If you choose the "Lowest Balance First" method, and two of your balances are roughly the same amount, but have very different 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.
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Free Credit Card Debt Reduction and Debt Snowball Calculators for Excel |