Debt Reduction Calculator

Debt Reduction Calculator for Excel 1.2

Download CNET Debt Reduction Calculator

This is a great Debt Reduction Calculator on Spreadsheet. I have gone through this. It’s amazing. What I like about this calculator is that, It is made on the Debt Snowball Method.

Lowest Balance First: Get the benefit of the snowball effect, but you may pay
more interest in the end than Highest Interest First. The main benefit of this
approach is the psychological effect of seeing the number of debts disappear
more quickly. Highest Interest First: This strategy results in the lowest total interest, but depending on the balance of your higher interest loans, it may take you longer to see your first loan/debt completely paid off. If the difference in the total interest is not significant, than you may get more satisfaction from the Lowest Balance First method. Tip 1: If you want to use the Lowest Balance First method and you have two debts that are close to the same balance but have very different interest rates, you may see a substantial reduction in the total interest paid if you change the order of the two entries so that you pay the higher rate first. In that case, try using the Order Entered in the Table strategy. Tip 2: Like Tip 1, if you want to use the Highest Interest Rate method, and you have two debts with similar rates but very different balances, you may want to change the order so that you pay off the lower balance first. This may make very little difference in the total interest, but it can make you feel better faster. Tip 3: Update the Creditor Information Table every few months. Your minimum payments may change over time as the balance in your accounts change, or if your interest rate changes. You may be able to further reduce your overall interest and reduce the time to pay off your debts, by re-adjusting your minimum payments every few months. This would mean starting over with a fresh template, entering the new Balance Date, and updating the Creditor Information Table.