Debt Snowball Planner (Repayment Plan)

Debt Snowball Planner

The debt snowball method involves paying off the smallest debts first, so you’ll creating a “snowball”. Each next debt gets repaid in a shorter time.

This sheet will show you how to manage your debt. You will check how quickly you are able to pay off the debt and plan a future without any debts.

Snowball or Avalanche? 

First of all, where do such names come from? Like a snowball or an avalanche, the more time passes, the more snow there is. The same goes for repayment funds. In each method, we pay off the minimum amount and allocate the budget surplus to the selected debt.

In the case of Snowball, it will be the debt that is the smallest balance. This way, the snowball will “grow” quickly. While the avalanche method guides pay off the bill with the highest interest rate.

After adding debts to the sheet, you can see which method will suit you better. Of course, both methods are about reducing interest payments (less interest = more savings).

Save up to 25%!!

Example

Let’s say you have 3 debts:

• Debt 1: Balance $10 000, Interest Rate 15%, Min. Payment: $250
• Debt 2: Balance $8 000, Interest Rate 10%, Min. Payment: $30
• Debt 3: Balance $5 000, Interest Rate 20%, Min. Payment: $150

Your monthly budget is $1300.

Debt Snowball Solution

Your repayment plan would be:

1. Debt 3 in 6 months
2. Debt 2 in 1 year, 2 months
3. Debt 1 in 1 year 8 months

The total cost is $25,840

Debt Avalanche Solution

Your repayment plan would be:

1. Debt 3 in 6 months
2. Debt 2 in 1 year, 1 month
3. Debt 1 in 1 year 8 months

The total cost is $25,569

The difference is s only $271 in this example, but what would it look like without using both methods? Research shows that the budget without allocating savings would take 6 years and cost $ 34,501, which is about $ 8,900 more (25%)

Need Snowball Savings Planner? Just check this spreadsheet

Contents:

• Excel Spreadsheet
• Link to the Google Sheets Spreadsheet
• Discount code

Compatible:

Excel 2010, 2013, 2016, 2019, 365, Google Sheets