Believe it or not, but there is a correct way to pay off debt. Paying the smallest debt first will NOT pay your debt off faster. There are a lot of debt snowball spreadsheet templates that follow Dave Ramsey. It’s important to remember that he’s main concern is that you keep motivated. This is why he has you paying off the smallest debt first. By doing that you’ll see the number of credit cards and loans you’re paying on will be going down.
Finding The Most Effective Debt Snowball Spreadsheet for Excel
There is a website that has a great debt reduction spreadsheet. Someone had obviously put a lot of thought into this tool and it shows. I’m amazed how the credit card payoff spreadsheet is so effective in paying off debt. In order to use this debt snowball calculator you’ll need to get a list of all of your credit cards, auto loans, and any other type of debt account. For each account you’ll need the balance, interest rate, and minimum payment. The excel spreadsheet will orginize your debt from the highest interest rate to the lowest interest rate.
The debt snowball method has you paying at least the minimum payment for all accounts.