Way back when, I tried my hand at creating a spreadsheet to help with figuring out how to drive down your debt using the snowball method. Admittedly, it had some problems and was really only good for my own use, in the end.

But today, I came across a post on The Consumerist that linked to a spreadsheet that, frankly, blows mine out of the water in terms of functionality and completeness. I suggest you take a look at it if you’re trying to snowball method of paying off your debts. It’s simple to use and gives you a great overview of where you money will go.

Debt Reduction Calculator

The spreadsheet is free for personal use, but it does seem to require you to have Excel since I can’t get it to open in Google Spreadsheets. (I haven’t tried it with Open Office, so it might work there.) Visit the site for more information and to download the spreadsheet: Free Debt Reduction Calculator for Excel.

(c) 2007-2009, That One Caveman, http://www.thatonecaveman.com

Thanks to Lisa, who commented in my post on the power of the snowball, for prodding me to make a template for others to follow.

The debt snowball method can be a very powerful force when implemented properly and with sufficient planning. If you’re not well-versed in Excel and the formulas, it can be hard to set up a spreadsheet for yourself. I’ve taken care of the hardest part for you, all you have to do is plug in your numbers

This version of the template will allow for up to 10 debts to be forecast and does have some limitations (that I hope to eliminate in a potential future update):

• First, the snowball will roll from the left to the right, so you need to make sure the balances to the left disappear before the ones on the right. If a debt in the middle of the sheet is paid off before one on the left, the first debt to the right of the newly-paid debt will receive the snowball benefit. This is due to the limitations of the formulas I used (had to prevent circular references).
• Second, the spreadsheet is set to calculate over 100 months. If you need your forecast to extend beyond that range, you’ll need to copy the whole bottom row and paste it to the bottom of the table as many times as you need. There are other more efficient ways to do this, but for the sake of keeping the instructions simple, that will be sufficient.
• Third, variable interest rates are not handled by this spreadsheet. Your best bet, if you have a variable rate loan, is to estimate high on the interest rate and be pleasantly surprised later when you pay it off early.
• If you happen to use Google Spreadsheets to open the spreadsheet, there seems to be a bug preventing display of the payments on the first debt. I don’t yet know what’s causing that one – it opens fine in Excel…

Using the spreadsheet is fairly simple – all of the work is done for you through formulas. I prefilled the spreadsheet with my original snowball forecast (the one I wrote about before was a further customization) and all you’ll have to do is edit the cells in pink to match your data. To use this template, you’ll need to know the following information:

• The date your forecast will begin
• The information about your various debts
  • Debt Name
  • Monthly Payment
  • Interest Rate
  • Balance as of the beginning of the forecast

Once you’ve gathered that information, it’s just a matter of plugging it into the spreadsheet in various orders to see what happens over time. My example data illustrates the “lowest balance” method, but that is only one possible way to eliminate your debt. Play with your numbers to find your most efficient snowball and then stick with it. In time, you will see the benefits of the snowball as your debt gets plowed away.

Click for a graphic sample:

Click to download: Snowball Forecast Template

If you come up with improvements for the spreadsheet, let me know and I’ll add them in. There’s no reason we can’t come up with a wonderful solution as a community. And beyond this spreadsheet, there are many other online tools to help you with your snowball planning. If this spreadsheet doesn’t fit your needs, just hit up Google and find the right tool for you. Your debt payment plan is too important to leave in the hands of one tool or method. You owe it to yourself to find the most efficient plan for you!

(c) 2007-2009, That One Caveman, http://www.thatonecaveman.com

I have finally uploaded the first version of the Expense Report spreadsheet. It’s not much, yet, but with your input and suggestions, I will definitely make improvements.

The goal of this spreadsheet is simple: Input every single cent that leaves your person. In order to get accurate data, you must track every single penny of every single transaction that takes money away from you. Regardless of if it’s a quarter in a parking meter, a $5 fast food “meal,” or a $200 microwave, you must add it to the spreadsheet.

Also do not forget to include any payments to loans or bills that arrive. I input the date the check was written or the bill pay transaction hit as the date in my spreadsheet. You may choose to mark the date the bill arrived or its due date. It doesn’t really matter what date you use as long as you use the same one every time and you enter every single bill.

At the end of the month, create a new sheet and start tracking all over again. Eventually, you’ll have enough data to know where all your money is going. Use that data to reign in spending where you can and set a workable budget.

Ok, now it’s your turn. Download and use the spreadsheet and see what happens. Let me know how or if it helps you and what the spreadsheet might be lacking. I look forward to hearing from you!

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Note: I uploaded the spreadsheet in Office 2007’s format. If you are using an older version, make sure you have the Microsoft Office Compatibility Pack installed to be able to open the file. I will do what I can to make sure the spreadsheet is workable in older versions, but I cannot fully support anything less than 2007.

(c) 2007-2009, That One Caveman, http://www.thatonecaveman.com