If you’re like most people, you have debt. Debt is a burden, it sucks. But what can you do about it? How can you eliminate it?
That’s what this Single Debt Analysis Template is for. I’ll show you how to use this free template to jump start a plan to eliminate debt. You’ll be able to see exactly what impact slight changes can make on a single piece of debt.
Get out from under your debt, take control of your financial life and, stay motivated while you do it!
Single Debt Analysis Template
System Requirements: Microsoft Excel® 2007 or later
User Agreement: Read it Here
Let’s Get Started
Download the template above.
You have to enter just 4 bits of information for the template to perform a complete analysis. Enter the following:
- Current Debt Balance
- The Interest Rate
- Your Minimum Monthly Payment
- The New Payment (your proposed payment)
The template you download has been filled out for a single credit card. After you enter the information, you can see the impact of the additional payments.
Keep this in mind
- The cell for your minimum monthly payment should be what you are currently paying. If you are only making the minimum payment on a credit card, this amount is typically 2% – 4% of the balance.
- The cell for your proposed payment is the total amount that you can afford to pay. It should be more than the minimum payment. If it’s not, you need our personal budget template and our Service Provider Savings Tracker.
If you’re paying the minimum payment on a credit card, you’re going to be paying for a long time! That’s how they do it. You’re paying 2% of the balance while they’re charging you interest of 15%.
Just take a look at the example in the download. This is a $10,000 balance that takes 70 months to pay off. That’s almost 6 years. Six years of your life at an interest rate that is lower than average. If the interest rate increases, so does the length of time to pay it off.
What about when it’s all said and done. At the end of the 70 months you’ll have paid almost $4,000 in interest. On just $10,000.
Why not make additional payments?
If you can push your payment up to $500, that’s a $300 increase, you’ll have the debt paid off in less than 2 years. And you will save $2,700 in interest.
If you do this one thing, you will make at least $1,200 in the next 12 months.
It’s not easy. I’m not saying it is. This is just a tool that you can complete and quantify the impact of a change in your behavior. I don’t like debt. I would love to help you get out of debt and have created several tools to help with debt.
It’s up to you. You have to want to make the change. You have to decide to do it. And when you make that decision, you’ll have tools to stay organized. Seeing the financial impact of your choices should be motivating. You’re saving money. You’ll also be reducing the length of time to pay down your debt.
Use the savings for something that matters.
If this template helps you, be sure to share it with your friends. The average person has $15,000 in credit card debt. Let’s change that stat one person at a time!