Make a debt repayment spreadsheet by choosing one of the two common styles of repayment, which are the snowball method and the debt avalanche method, also called the "highest interest first" method, explains Consumerist. Spreadsheet gives you the freedom to choose from the various debts reduction methodologies, states GetRichSlowly.org.
The Excel spreadsheets offer users a convenient option for generating a custom strategy of clearing debts, according to Consumerist. The tool comes in handy for people with multiple credit cards who are unsure of how to clear the debts.
The snowball spreadsheet file contains two worksheets that include a debt reduction calculator and a payment schedule, explains GetRichSolwly.com. The debt reduction allows you to enumerate your debts, their balances, interest rates and monthly payments. The payment schedule indicates which bills to pay.
When using the snowball method spreadsheet to pay debts, enter your credit cards, their balances and the applicable interest rate, explains Consumerist. Next, enter the required minimum monthly payments, plus the maximum feasible amount you can afford to pay, based on your budget. Select the desired style of repayment, such as highest interest first or snowball, from the drop-down box. The program automatically spells out the effective payoff approach. It computes how much interest and the total payable amount, as well as the period of time necessary to clear the debts.