Fast Debt Payoff Planner Spreadsheet – Google Spreadsheet Templates (2024)

FAQs

How do I make a spreadsheet to pay off debt? ›

First, create columns for the name of each debt, the current balance, the interest rate, and the minimum monthly payment. Then, add additional columns for extra monthly payments and the remaining balance. You can use formulas in Excel to calculate the interest and remaining balance based on the payment amounts.

Comparing the methods from a purely financial standpoint, the debt avalanche method saves you more money in interest than the debt snowball method will. However, a debt snowball can keep you motivated if you're facing numerous debts and want to see progress sooner than you might with the avalanche method.

Make a debt snowball worksheet

On your worksheet, list your debts and use the total amount you owe to order them from smallest to largest. Then, create two columns: one for your minimum monthly payment and another for the amount you actually pay each month.

Consider the snowball method of paying off debt.

This involves starting with your smallest balance first, paying that off and then rolling that same payment towards the next smallest balance as you work your way up to the largest balance. This method can help you build momentum as each balance is paid off.

Here's how the debt snowball works: Step 1: List your debts from smallest to largest (regardless of interest rate). Step 2: Make minimum payments on all your debts except the smallest debt. Step 3: Throw as much extra money as you can on your smallest debt until it's gone.

If you're motivated by saving as much money as possible down to the last penny, you'll probably prefer the "avalanche" method. On the other hand, if getting a quick win right off the bat encourages you to keep moving forward, then the "snowball" method will likely motivate you the most.

In contrast, the "avalanche method" focuses on paying the loan with the highest interest rate loans first. Similar to the "snowball method," when the higher-interest debt is paid off, you put that money toward the account with the next highest interest rate and so on, until you are done.

The debt avalanche and the debt snowball methods are two strategies for paying down debt. With the debt avalanche method, you pay off the high-interest debt first. With the debt snowball method, you pay off the smallest debt first. Each method requires you to list your debts and make minimum payments on all but one.

With the debt snowball method, you start with your smallest debts and work your way up to the largest ones. While it may not save you as much in interest as other repayment methods, the debt snowball method can keep you motivated to continue paring down your debt.

How to become debt free fast? ›

Focus on your highest interest rate first

It's OK to make minimum payments on the rest of your accounts. Once your highest interest rate account is paid off, focus on paying off your card with the next highest rate and continue to do so until all of your debts are paid off.

Before you create your debt visual, start by taking inventory of your balances. Seeing all your debt laid out in front of you can be overwhelming, but it's key for knowing exactly what you owe and what to prioritize. Write down each balance, its interest rate, the minimum payment and due date.

To calculate net debt using Microsoft Excel, examine the balance sheet to find the following information: total short-term liabilities, total long-term liabilities, and total current assets. Enter these three items into cells A1 through A3. In cell A4, enter the formula "=A1+A2−A3" to render the net debt.

To create an amortization table or loan repayment schedule in Excel, you'll set up a table with the total loan periods in the first column, monthly payments in the second column, monthly principal in the third column, monthly interest in the fourth column, and amount remaining in the fifth column.