The intention of this free debt snowball spreadsheet is to allow you to maintain two necessary ingredients of paying off debt.
- It is a tool to help you get organized. To help you get organized you’ll want to have one of the best personal finance software. This could be a free money tracking program like Mint or another paid option. Throughout this process you might want to keep you eye on your credit score. To do this you can sign up for a free account with Credit Sesame.
- It is intentionally designed to keep you motivated.
This tool is especially helpful if you are trying to get out of credit card debt and following Dave Ramsey‘s teachings regarding the debt snowball. If you are not familiar with the debt snowball here is an explanation of the debt snowball.
Debt Snowball Spreadsheet Features
This snowball worksheet has four main categories.
Paid off debt
When you first start your debt reduction plan, this category will probably be empty. That’s alright. It won’t be blank for long. Each time you pay off a balance, write on the debt snowball spreadsheet what the money was for, how much you paid off, and the date you paid it off. Also, remind yourself of what you did to celebrate.
This keeps all of your accomplishments in front of you. You can remind yourself of everything you have accomplished as you work towards paying off all the money you owe.
Actively Working Towards Paying Off
In this category, you highlight the one debt that you are making extra payments towards. All of your focus and energy is on this one balance. Your new number one enemy.
In order to keep a carrot in front of you, list what you will do when you pay off the debt. Keep the celebration proportionate to the accomplishment, but don’t be afraid to reward yourself for some excellent progress.
Next Debt To Pay Off
There is still another debt on deck. Be mindful that this sucker is next. In this section, be sure to add your pay off motivation – why do you want to pay off this balance? How is life better without that burdne? List it and keep it in front of you.
These funds are only receiving minimal attention – you’re making minimum payments each month. For now, you’re satisfied to tread water with this money owed until they move up into the next debt category or actively working towards group.
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Which debt should you pay off first – debt snowball?
Some say the one with the highest interest rate. Others say the one with the smallest payment. Still, others say the debt you hate the most (biggest motivational pay off). The smallest payment approach seems to be the most effective method to motivate people to pay off debt.
Download your free debt snowball spreadsheet with the debt reduction worksheet.
Here are three articles you might want to read to help you get started.
- Getting out of Debt: A simple first step suggests you track your receipts for a month.
- Getting out of Debt: A second step suggests you get your hands on 10% of what you make in a month.
- Getting out of Debt: Step three suggests you get passionately intense about becoming debt-free.