Why A Debt Reduction Spreadsheet Can Help Guide You Out of Debt

Debt Reduction Spreadsheet

If you are working on reducing your debt, a debt reduction spreadsheet may be the right tool to help you achieve your goal. There are many available for free on the internet and many of them come with a debt calculator that you can easily use with the spreadsheet. Debt reduction spreadsheets make it easier to see where you are starting from on your road to being debt free. As you change the situation, it makes it easier to track the changes you make.

Why A Debt Reduction Spreadsheet is Important?

A debt reduction spreadsheet  is important because it will help your keep track of changes to your income or expenses. Calculations may change for your projected dates of debt pay-off and amounts of payment depending on the debt reduction plan you are implementing. Changes can affect the estimated date of debt elimination in your debt reduction spreadsheet so it is important to record all changes.

The use of a debt reduction spreadsheet also helps keep you motivated by giving you a clear picture of goals and progress made on your debt reduction plan. A good visual aid can go a long way to enabling you to remain disciplined and on track.

Different Types Of Debt Reduction Spreadsheet

Not all debt reduction spreadsheets will look the same. They will vary depending on the debt reduction plan or method being implemented. Debt reduction spreadsheets work really well with the snowball method of debt reduction. Since this method usually requires the debt with the highest interest rate to be paid first, the debt reduction spreadsheet is a valuable way to maintain a record of which debts are to be paid and in what order.

Use the built in calculator on the debt reduction spreadsheet to update data necessary to complete your plan. Keeping track of increases in income or reduction in expenses can allow for more money to be paid towards debts. Using the calculator and making adjustments in the spreadsheet will show how much faster you can eliminate debt. Always customize the debt reduction spreadsheet to fit your personal goals and situation.

Debt Reduction Spreadsheet Alternatives

When I first taught people about debt reduction spreadsheets about 10 years, the spreadsheet was done with paper and pen. However, these days mostly everything automated and done on a computer. So most debt reduction spreadsheets are created on a spreadsheet template like Microsoft Excel. I have even seen a client of mine use a debt reduction spreadsheet on a Mac.