A Simple Tip to Pay off Debt Faster (with Spreadsheet)
There are a variety of strategies to pay down debt, such as snowballing, paying down debts in order of interest rate, etc. The spreadsheet we made shows the difference between paying a loan monthly or paying one-fourth of the monthly amount each week. This isn’t a new idea, but it’s simple and effective. If you’re not handy with spreadsheets it might be a little difficult to figure out a good way to implement this. So, hopefully this is helpful to you.
You can also add an additional payment each week if you want. The spreadsheet will calculate how much interest you will pay under each scenario (monthly versus weekly). It will also calculate how much more quickly your loan will be paid off.
It is simple to use and only has a handful of inputs: loan term, interest rate, loan amount, and an optional extra weekly payment.
All of the results are on a summary tab, including a couple of graphs so you can visualize the differences. There is also a scrolling table that stays in place. You should be able to see a nice summary without having to switch tabs or scroll around a bunch.
If you aren’t sure how to use the spreadsheet, the “Instructions” tab should be able to answer most of your questions.
Here’s a screenshot:
All of the calculation details can be found in the “Details” tab.