What goes on the worksheet
One row per debt: name, balance, interest rate (APR) and minimum payment. Then one number at the top: the extra amount you can add each month.
Steps
- Sort your debts from the smallest balance to the largest.
- Pay the minimum on every debt.
- Put the extra amount on the smallest debt.
- When it is paid off, add its full payment to the extra and move to the next debt.
- Repeat until everything is paid. Update balances from your statements each month.
Snowball or avalanche?
The avalanche method orders debts by highest interest rate instead, which usually costs less interest. The snowball gives quicker wins. Read snowball vs avalanche to compare.
Check your dates
The free debt payoff calculator compares both methods for several debts, and the debt-free date calculator shows when a single debt will be gone.