Loans and debts are probably the hardest financial obligation to see through, especially if you have them stacked from the past. But fret not, we offer you a debt snowball spreadsheet right here, so you can easily keep track of all your paid and unpaid debts.
The dilemma with debts is that no matter how hard you try to pay them, and no matter how hard you try to make sure they don’t stack up, they inevitably do. And it is not ones’ fault rally, it just happens naturally. As long as you make sure the pile does not become too large to handle, all is well. However, if there has been some neglect, and you have a lot of debts to catch up to, snowballing method is probably the most effective method to use.
What are Debts?
According to Wikipedia debt is:
“Is an obligation that requires one party, the debtor, to pay money or other agreed-upon value to another party, the creditor.”
In simple words, it is something a certain person owes to another in exchange for their services. These services could range from anything, including buying of goods, borrowing of money, and even paying of bills. These services are offered to the buyer with intent of repayment for them.
There are two types of debts
- Secured Debt
- Unsecured Debt
Secured debt is basically a form of debt that is protected by some sort of collateral, so the debt holders have some form of surety on their part. Here is how secured debt works, suppose you sell some sort of product or service in exchange for money, and to make sure you get you payment out of every service you give away, you put up a collateral. If your buyer fails to repay you the amount in full, you as the seller or the lender get legal rights to the collateral. A good example of this could be mortgagee.
Debt Snowball Spreadsheet
On the other side of the spectrum, we have unsecured debt, which you can pretty much identify by name. Unsecured debts are much less protected, and are risky, that is exactly the reason why the more professional environments use safer methods like the collateral to protect their debts.
Debt Snowball Spreadsheet Free
Now that we know in detail what debts are, let us talk about a very effective debt reduction method.
Debt Snowball Form
What is Debt snowballing?
Before I talk about the debt snowball spreadsheet free we have for you here, let us look at what snowballing really is.
Debt snowballing is a debt reduction method that allows you to gradually pay off your debt from the smallest one to the most significant.
Debit Reduction Calculator
The name does sound very funky, but the theory behind it is brilliant. What is the easiest and fastest way to make a very sturdy snowball? Simple! You take some snow and you pack it, and you roll it through the snow. Slowly and gradually the snowball becomes bigger and bigger until you have a perfect one.
Debit Snowball Spreadsheet Excel
This is exactly the theory this method works on. You start your debt paying journey by paying off the smallest debt you owe, and then slowly and gradually as you gain momentum, your debts get larger, just like a snowball.
Debt Snowballing Template on Microsoft Excel
This all sounds very confusing by now I’m sure, this is exactly why we are offering you this debt snowball spreadsheet excel so you font have to make your own template to keep track of the debts you have paid, and the ones you are yet to.
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