How to Use a Snowball Debt Payoff Calculator

Are you struggling with multiple debts and unsure which to tackle first? 

The snowball debt method can help.

Read my disclaimer below before you proceed. 

Here's how it works:

1. Rank your debts: List your debts from smallest balance to largest, regardless of interest rate.
2. Focus on the smallest debt: Put any extra money you have towards paying off the smallest debt first.
3. Minimum payments on others: Continue making the minimum payments on your other debts.
4. Repeat: Once the smallest debt is paid off, apply the extra money you were paying towards it to the next smallest debt.

This method can be motivating as you see debts disappear quickly. 

I created a spreadsheet to assist you in getting started. Here’s how it works:

The spreadsheet comprises five sheets.

Spreadsheet with 5 tabs

Here are the sheets: Sheet1, Debt1, Debt2, Snowball, and Helper_data.

Sheet1

Listing your debts

In this section of the sheet, you will list all your debts. You do not have to worry about the order.

Rank

This section of the sheet ranks the balances from lowest to highest. I prefer to start the snowball with the first two lowest debts.

Key dates 

Let’s break down this information:

• M1: Represents the number of months required to pay off Debt1 by making only the minimum required payment.
• M3: Indicates the number of months remaining for Debt2 after you have completed paying off the first debt (Debt1).
• M2: Refers to the number of months needed to pay off Debt2 if you apply the minimum payment amount from Debt1 to Debt2. This approach accelerates the process of paying off Debt2.

Note: Once Debt2 is paid off, make a copy of the spreadsheet to repeat the process until all your debts are paid off.

Debt1

Debt1

This sheet is read-only. It provides a schedule of payments for the first debt (Debt1). 

Debt2

Debt2

This sheet is read-only. It provides a schedule of payments for the second debt (Debt2). 

Helper_data

Helper_data

This sheet is read-only. It displays the first two debts side by side (Debt1 and Debt2). 

snowball

snowball

This sheet is read-only. It provides a schedule of payments for the second debt (Debt2) by adding the minimum payment of the first debt (Debt1). 

Disclaimer: Personal Finance Experience
The information provided in this blog post is based on extensive research and practical testing. 
I thoroughly examined the snowball debt repayment method outlined in the accompanying Google spreadsheet across various scenarios. However, it’s essential to recognize that individual financial situations vary, and what worked for me may not be suitable for everyone.
Please note that I am not a financial advisor, and this blog post does not constitute professional financial advice. Always consult with a qualified professional before making any financial decisions.
Remember that financial decisions should be made carefully and considerately.

Frequently asked questions

What is this spreadsheet about?

This spreadsheet is a Do-It-Yourself (DIY) tool designed to assist you in managing your debt using the snowball debt payoff method. Organizing your debts and payment schedules, helps you make informed decisions and accelerate your journey toward financial freedom.

Who has access to the spreadsheet?

Only you and those you authorize will have access to the spreadsheet.

Is there a recurring fee to use the spreadsheet?

No, it's a one-time purchase. You can use it forever as long as Google Sheets remains free. Just make a copy for each new year.

Do you offer support services?

Yes. Purchasing the spreadsheet gives you a 14-day license key to contact me with any questions about the spreadsheet. However, please note that I cannot access your spreadsheet directly.

Where can I buy the spreadsheet?

The spreadsheet is currently available only on my Gumroad shop website: https://erickouassi.gumroad.com/l/ievduc