DEBT REDUCTION PLANNER INSTRUCTIONS

The idea behind debt reduction is to concentrate on paying off your smallest balance first. Do this by making the minimum payment, plus as much extra as you can manage*. The more you pay extra, the sooner you will pay it off. When it is paid off, you take the amount you have been paying and add it to your regular payment on your next biggest balance, until it is paid off, etc. As you keep following this process your debts will be paid off much quicker than you had ever imagined.

*Where can you find money to pay extra towards your debts? Try canceling certain subscriptions, eating out less, etc. Even a small extra amount paid on your balances will add up quickly!

1. Open the file in Microsoft Excel (link below).

2. List your debts in the order of smallest balance to largest balance, along with each account’s minimum payment, yearly interest rate, etc.

3. In the “additional payment” box, put in the amount that you are going to pay extra.

The spreadsheet will do all the calculations for you and you will see how long it will take you to become debt-free (not as long as you think).

Debt Reduction Planner
(This is a Microsoft Excel spreadsheet - you must have Microsoft Excel to use the file properly.  After opening the link, consider saving it to your local PC by using the File, Save As command).