If you’re committed to paying off debt, you’ll know very well that you need an overall financial strategy to get there. Debt snowball or debt avalanche spreadsheet You may also be interested in: 10 Best Personal Finance Podcasts for Beginners 10. Grab this free printable debt payoff worksheet as a PDF here. And while I actually think the avalanche method has its advantages over the snowball method, both can work just as well for helping you to avoid the dreaded process of having to respond to a debt collection letter. You could always use the debt snowball method and list your debts here from smallest to largest balance.īut it also works just as well if you’re considering following the debt avalanche method, in which case you’d simply list your debts from largest to smallest by interest rate. You can see in the image that this worksheet leaves it to you to decide which debt payoff method you want to follow. And for anyone who wants to keep their debt trackers interesting to look at, this one could be for you. This one starts to lean into a more colorful way to track your debts without being overwhelming. Whichever one you prefer, there’s going to be one here that works for you! 1. Perhaps you like one that’s more colorful to catch your eye or you like to keep it more in line with your overall decor. Maybe you prefer a fillable PDF version you can keep on your computer or maybe you’d rather one you can print and stick to your fridge, so you can always see it and be held accountable. The best debt snowball worksheet for you is going to come down to personal preference. This is why having something like this method is perfect for those moments when it all feels impossible, as the quick win of paying off those smaller debts will show you that getting out of debt really is doable. There’s no question that this process can take some time and it’s easy to get stuck or feel like you’re never going to make it. It’s particularly effective for those who feel that the psychological push that the snowball method provides will help them stick to paying off their debts. This, in turn, allows you to build momentum as you continue to roll over your payments to each subsequent debt, until you become debt-free. The debt snowball method works in terms of it providing you with motivation to keep paying off your debt, as you’ll quickly see the progress you’re making in reducing your debts. GET IT NOW Does the debt snowball method work? This is why I always recommend using Personal Capital – it’s a completely free budgeting app that automatically tracks your spending for you.) (And you’ll need to make sure you’re budgeting effectively to make sure you’re able to stick to paying off your debt throughout that process. This can serve as great motivation for making money to help you to keep chipping away at your debts, providing you with the momentum needed to continue along your debt repayment journey. That is, the aim here is to give you a (relatively) quick win by having you pay off the smallest debt by balance first. The objective here is to give you the motivation to continue working at becoming debt-free, as each one is paid off in turn. When the smallest one is paid off, the amount of those payments shift to the next debt. The debt snowball method involves paying off your debt in order of smallest to largest balance.
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