The Debt Reduction Calculator is your way to finally break the cycle of debt you’ve found yourself circling for years. This carefully constructed template sheet allows you to enter your creditor information and other loans you may have then chart a path to help you escape debt once and for all using a snowball method. You’ll even receive a helpful graph that shows you how the snowball method will reduce the interest you owe on your debt significantly over time. Become debt free in the most efficient way possible. Download the free template today.
How to Use the Debt Reduction Calculator
After downloading the Debt Reduction template to your computer by following the link below, open the document and start at the top of the “Calculator” tab.
The first thing you will do is enter the current date at the top of your creditor information table. Now, in the first column, list all the creditors that you owe a balance to. You will then enter the balance, your interest rate, your monthly payments, a number of payments you want to make in a month, and finally the amount you pay from interest alone each month.
Scroll down to the middle of this table and enter the total amount you pay each month for all of your bills and the Debt Reduction template will calculate the amount you’ll invest in your snowball method of payment.
The table at the end of this section will show you exactly what order you need to pay your creditors to maximize payment efficiency. You will receive helpful information such as the number of months until you have a balance completely paid off and the total interest you’ll eventually spend.
The graph at the bottom of this tab will show you exactly how the snowball effect focuses on the lowest bills first to help reduce the amount you’ll spend on interest.
Finally, if you need a more comprehensive way to track your individual payments, the template also provides you with a separate tab (Payment Schedule) that does just that. Click on this tab to see what bill, and the amount for it needs to be paid for the month.
Take back control by downloading the free template today.
Download: Debt Reduction Calculator
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