A Debt Reduction Calculator

Well this week has just dragged by. Long, long, long it was, Yoda.  The doldrums that were coming and going the week before have now been a permanent uninvited house guest. I have been fighting them all week, but up until now it has been a losing battle. Last night and today I feel like I am finally coming around, to being somewhat normal again… what ever that is, right? I did get the budget all caught up for last month and also for this month as well! So there is one good thing right? I at least felt better about finally getting that accomplished! I also figured out our debt reduction calculator. Which was so cool and exciting I wanted to share that with you!

We all have things that we waste spend our money on, whether it be a new TV, Tires, a Laptop, or Furniture of some kind, at least that was what we used ours on, but there are quick and efficient ways to pay it off. What ways you ask? Why a debt reduction calculator of course! Not know what a debt reduction calculator is? Let me explain:

A debt snowball is paying off your lowest bills first by setting aside a certain extra amount of money each month to help pay them off. Though you may pay more in interest than in a debt avalanche (explained below) it has the exciting perk of having your debts be paid off more quickly.

A debt avalanche is setting aside a certain amount of money to pay off your debts with the highest interest first. But depending on the balance of your higher interest loans it may take longer for you to pay off your bills. If the difference between the snowball and the avalanche is not severe it may help to have the satisfaction of the debt snowball effect.

In the awesome Excel Spreadsheet that I found, they also have other variations that you can try using to customize your debt calculator.

There are also things called Snowflakes, which are onetime extra payments that you make above and beyond the normal monthly payments that you are making. For example, if you get birthday money you want to use, or if you want to use your Income Tax return to pay it off, it will help speed up the payoff even more!

Click here for this awesome Spreadsheet. But for those who are weary of Excel, let me just say three things. It has all the instructions written off to the side, it has examples already in the sheet to show you how it should work, and don’t forget the tabs on the bottom. This spreadsheet only comes with two tabs, but both pages are very informative and exciting!

Do you/have you use(d) anything like this? How has it worked for you? I personally learned about it in my money management class at BYU-Idaho, and it was super cool to put it to use!

Plums are Purple, and Snickers are Sweet,

From my family to yours…

And lets follow the wise counsel of those who have said to only go in debt for the essential things, such as school or a modest house, or car!

Here’s to being liberated from the chains of debt!

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