Debt Payoff Spreadsheet Template – If you are one of the many people who before they give you their salary already has a distribution between the expenses and the debts that you have of time and the goods have not yet been able to leave?
Then this strategy may be the solution; As well as that will help you pay faster, which will allow you to feel calmer; Have the opportunity to save and why not invest. In order to carry out this plan, it is necessary that of the time, have disposition and constant sea.
Ideally to start with the plan you possibly with expenses and pay your debts, also a 10% of your income to cover them faster, but as many times you can not do and can do the following:
1.- Before carrying out the plan, take the time to:
A) Review the expenses you have spent in the last six to eight months.
B) Divided by categories, those for education, home maintenance, home improvement, family expenses, transportation expenses, car maintenance, etc.
C) Now point to these categories where you can save.
D) Analyze How much are you paying monthly interest on your debts?
E) What percentage of your income to pay your debts?
F) Knowing the amount you pay in debt and interest can give you an idea of how much you have to save, and just look at that.
2.- You have to be willing to make some changes and be constant; Although this results in a little more effort and time, for example:
A) Take your work lunch, at the street eating place you can save $ 500.00 or more a month.
B) Instead of inviting your family to eat several weekends, better plan and prepare food at home, with this alternative you can save another $ 500.00 more monthly.
C) If it is possible to compare the car with co-workers who live near your house; So save on gasoline, maintenance, parking or pay who cares for the car. You can also choose to take public transport or if your job is not far to walk.
D) If you are used to going out with friends on weekends, agree to the sea meeting in your house or in the house of one of them; You can save yourself a few more pesos.
Start with the plan:
1.- Of each of the debts it has, especially the time remaining to pay them; How you can know that you are dividing the total credit balance between the monthly payment or the mandatory minimum.
For example: You currently have the following debits:
Clothing-Must $ 1500, which will pay $ 250 each month; For 6 months.
Credit card payment: $ 2000 with $ 1000 per month, for 2 months.
You have a credit for your car of $ 45, 000 and you pay $ 3750 a month for 12 months.
Payment of the house that has a value of $ 260,000 paying $ 2,167 a month for ten years (120 months).
2. Make a list and list the debts starting with the one that takes the least amount of time to be paid in full, until you reach the last number on the list that will be the credit for the longest term.
Based on the example above, the list would look like this:
1.- Payment of the card.
2.- Payment of clothes.
3.- Payment of the car.
4.- Payment of the house.
On the other hand he made some changes and saved $ 500.
3. Now cover the minimum payment of each and every one of the debts as you have been doing. As for the No.1 debt according to your list, you will pay the minimum amount also of what you managed to save, the same energetic month by month until you fully pay off your Debt No. 1.
Example: Debt No1.- Payment of the card $ 1000 + 500 = 1500 and remaining $ 500 for the following month; But as you have paid for $ 1000 one this debt and in the following month again save $ 500 at least to liquidate your debt No. 1 and you will have $ 1000 left.
4.- Continue to pay minimum of each debt; Do not forget to make a month with the account that, except for debt No. 2, will pay you the minimum payment (example $ 250), plus a fast payment plan of the debt ($ 500) plus the minimum payment that your debt performed 1 ($ 1000). So Repeat every month until you pay your Debt No. 2 completely.
In the case of the previous example for the second, it will have remained in account No.1 and the surplus $ 1000 and as it has not stopped paying; To debt No.2 you will have to pay only $ 1250 which will easily be covered because you have 250 payment + 500 savings + 1000 of the surplus of debt1.
5.- Continue to cover the minimum payment of each debt. And now Debt No. 3 will pay you the minimum, plus your fast debt repayment plan, plus the payments you made for your Debts No. 1 and No. 2. Repeat month by month until you pay your Debt No. 3 and continue with the following.
6.- Once you have covered “all” your debts, you now have the opportunity to save that 10% that is so much required in the beginning to start your plan. Even now thanks to his effort and perseverance, he has managed to accumulate money that he can use to save and invest.