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 DEBT PAYOFF TRACKER — Snowball vs. Avalanche
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What this workbook does
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Enter your debts and your monthly budget once. This workbook automatically works out the exact payoff order for the Debt Snowball and Debt Avalanche methods, simulates both month-by-month, and tells you which one saves you more money and time.
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1. How to enter your debts
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Go to the "Debts" tab. In the blue-font cells of the table (rows 7–16), enter each debt's Name, Current Balance, Interest Rate (APR, e.g. 24.99%), and Minimum Payment. One example row is included — overwrite or delete it. You can list up to 10 debts; leave any unused rows completely blank (they're automatically ignored everywhere else in the workbook). To remove a debt, just clear its row — nothing else will break.
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2. How to set your monthly budget
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Still on the "Debts" tab: enter the total amount you can put toward debt each month in the yellow "Total Monthly Amount" cell (B3), and the date of your first payment in the yellow "Start Date" cell (B4). The sheet automatically calculates your Total Minimums and the Extra Available on top of minimums.
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3. How the payoff order is built
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"Snowball Order" tab: your debts sorted smallest balance to largest (ties broken by higher interest rate first). "Avalanche Order" tab: your debts sorted highest interest rate to lowest (ties broken by smaller balance first). Both update automatically as you edit the Debts tab.
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4. How the simulation works
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"Snowball Plan" and "Avalanche Plan" simulate up to 180 months. Each month, every active debt is paid its minimum, interest is charged on the prior balance at APR ÷ 12, and every dollar left over from your monthly budget (after minimums) is thrown at the top debt in that method's order. Once a debt hits zero, its old minimum payment and any leftover extra roll forward to the next debt in line — exactly how Snowball and Avalanche work in real life. If a plan doesn't finish within 180 months, the Results Summary will flag it (increase your monthly amount).
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5. How to read the comparison
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"Results Summary" shows Total Interest Paid, Total Amount Paid, Months to Debt-Free, and your Debt-Free Date for each method side by side, plus the Interest Saved and Time Saved by Avalanche vs. Snowball. The charts show total remaining debt over time for both methods, and a bar comparison of total interest paid.
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A note on the two strategies
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Avalanche (highest interest rate first) is mathematically optimal — it minimizes total interest paid. Snowball (smallest balance first) usually costs a little more in interest, but many people find it easier to stick with because it produces quick wins as small debts disappear fast. This workbook lets you see exactly what the trade-off costs in your specific case.
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Key assumptions
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• Interest compounds monthly at APR ÷ 12 on the balance at the start of each month.
• Minimum payments and interest rates stay constant for the life of the simulation.
• No new charges are added to any balance.
• Your Total Monthly Amount stays constant every month (it should be at least your Total Minimums).
• Simulation horizon is capped at 180 months (15 years).
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Tabs in this workbook
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Debts → Snowball Order → Avalanche Order → Snowball Plan → Avalanche Plan → Results Summary
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