Think of this as your “starter snowball”. This is the amount you can pay on this debt every month. I’ve designed the spreadsheet to automatically total the “Budget Extra” amount you put in and add it to the Minimum Payment option for your first debt. Note: This field is locked, as it automatically calculates the total. Put this into the spreadsheet next to each debt. It will show you what the “Minimum Payment” required is to pay each month. This data can be obtained directly on your billing statement for the debt. Be as specific as possible here to get an accurate payoff date at the end. You may need to log into your lender’s website to get the most current data. This may include credit cards, student loans, car loans, or any other debts that it not your mortgage. This is where you are going to list your debts, starting with the smallest balance at the top. This is the amount you want to start putting toward your debt. If you haven’t already, download a copy of my Budget Template, fill out all your budget details, and then see what is left. This is the exact amount you have leftover at the end of the month. Here’s how to use the Debt Snowball Spreadsheet to start paying down your debt today: Budget Extra Watch the below video or continue reading below to get started! I’ve created a step-by-step tutorial on using your debt snowball spreadsheet. There is much more than numbers to this method, and it plain WORKS! Debt Snowball Spreadsheet Video Instead, putting your debt into perspective with the snowball spreadsheet gives you something to strive toward, and makes it feel more like actual progress.Īnd once that first debt is paid off, it can start to feel like a game that you want to WIN! Sometimes, paying off debt hurts because it makes you focus on your past mistakes (overspending, borrowing money, etc.). Since the debt snowball has you paying off the smallest debt first, you will feel the power of completely eliminating a debt, and stay motivated to tackle the next one.Īnd let me just note, motivation is a POWERFUL thing when tackling debt. People were much more motivated by paying off a smaller debt balance than making a small dent in a larger debt balance. The Harvard Business Review conducted a large study over 36 months that shows the power of small wins (paying off smallest balance first). There is scientific research that shows it is one of the BEST WAYS to pay off your consumer debt, especially if your debt is spread across multiple accounts. The Debt Snowball isn’t just a simpler way to pay off your debt. This is a simple, repeatable plan that has helped millions of people get out of debt, and is the same method I use for my Financial Coaching clients. Once the smallest debt is paid off, you put the previous minimum payment plus all that extra money on the next smallest debt.Continue to pay ONLY THE MINIMUM on your larger debts, and put ALL extra money toward the smallest debt.List your minimum payment amounts for each debt.List your debts from smallest to largest balance (ignore interest rate).The Debt Snowball follows these exact steps to help you pay off your debt: Instead of looking at the interest rate, you simply pay off the smallest debt first, and then move on to the next smallest. The debt snowball is a method for paying off your consumer debt (not your mortgage). He suggests that paying off debt in this order keeps you motivated to continue your debt payoff journey (and I 100% agree!). The Debt Snowball was made popular by financial guru Dave Ramsey, and is his preferred method of paying off consumer debt. Download The Debt Snowball Spreadsheet Todayīefore we dive into the details of the Debt Snowball Spreadsheet, let’s talk about what the Debt Snowball is, and why it’s a GREAT way to tackle your existing debts.
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