I'm a financial expert with extensive knowledge in managing debt and implementing effective debt payoff strategies. Whichever method you choose, there will be a separate tab where you can log your payment schedule. There is no such chart for the avalanche or stair-stepper method. If you choose the snowball method, there is a handy chart that will show you your projected progress. The first page allows you to input your debt and select your payoff strategy: Snowball, avalanche or stair-stepper – the last of which is a unique combination of the snowball and avalanche methods. The Debt Reduction Calculator from Vertex42 is a spreadsheet that gets a little more intricate. Note that some of these help you evaluate the avalanche method as well.ĭebt Reduction Calculator for Google Sheets and Excel from Vertex42 So here are some of the best free debt snowball spreadsheets for Google Sheets and Excel. Free Debt Snowball Spreadsheets for 2024Ī spreadsheet is one of the most helpful tools for planning the best debt payoff strategy for your situation. You’d then direct your attention to your auto loan, student loans, and finally your student loan. In the example able, you would pay off your credit card debt first, because it has the highest interest rate. Using this method, you pay off the debt with the highest interest rate first, regardless of how much you owe. While more people have success with the debt snowball method, the avalanche payoff approach is the best option mathematically. Also consider the avalanche debt payoff method And before you know it, debt freedom will be yours. And three large field experiments based on actual credit card data published in the Journal of Consumer Researchfound “focusing on paying down the account with the smallest balance tends to have the most powerful effect on people’s sense of progress – and therefore their motivation to continue paying down their debts.”īy the time you’re ready to attack your largest debt, it will feel achievable. Trying to pay off $98,814 in debt is daunting, but paying off $1,766 doesn’t sound so bad.Ī study from the Kellogg School of Business at Northwestern University found that consumers who used the snowball method paid off their debt faster. These small wins are built into the snowball method, which is why it is so effective.
Studies show that small wins are the single most important factor in accomplishing a hard task.
Then, you’d focus on your monthly auto loan payments and finally your student loans. Then, when that was paid off, you’d take the money you were using towards your medical bill and apply it to your credit card bill. Using the debt snowball method, you would pay off your medical bill first. Here’s an example of the debt snowball method in action: