To create a debt snowball spreadsheet, utilize spreadsheet software such as Microsoft Excel, and list all debts. Apply payments to the smallest debt amount until it is paid off, and monitor the total debt activity. Debt snowball calculators are also available to help determine how long it takes to pay off debt balances.
List all debts from smallest to largest in the first column of the spreadsheet. Be sure to put exact debt amounts and then a description for each debt in the adjacent column. Break down the debt between principal and interest amounts, if necessary. This approach helps with record-keeping and documentation. In the next column, supply the minimum payment for each associated debt, and record the beginning balance in the next column. Utilize the last column to represent debt paid off by subtracting the beginning balance from the current balance.
Analyze the debts and minimum payment amounts, starting with the smallest debt. If you believe you can afford a larger payment than the minimum listed, change the minimum payment figure for that particular debt. The idea is to pay off all smaller debts first. Additional columns and categories to add to the spreadsheet include due dates and any extra fees, if applicable. Several debt snowball calculators and spreadsheets are available for download; however, some have associated costs.