Debt Reduction Worksheet

How to Use This Worksheet

This debt reduction worksheet will help you organize your debts and create a strategic repayment plan. Follow these steps:

1. List all your debts in the Debt Inventory section, including balances, interest rates, and minimum payments.
2. Calculate your total debt and monthly payment obligations.
3. Choose a repayment strategy that works for you (snowball or avalanche method).
4. Create a repayment plan using the chosen strategy.
5. Track your progress as you pay down your debts.

Remember that consistency is key to successful debt repayment. Stick to your plan and celebrate small victories along the way.

Debt Inventory

List all your debts in the table below:

Debt Name	Type	Balance	Interest Rate	Minimum Payment	Due Date
		$	%	$
		$	%	$
		$	%	$

Repayment Strategies

There are two popular strategies for paying off debt:

Debt Snowball Method

With the debt snowball method, you pay off debts in order from smallest balance to largest. This approach provides quick wins that can help keep you motivated.

1. List your debts from smallest to largest balance
2. Make minimum payments on all debts
3. Put any extra money toward the smallest debt
4. Once the smallest debt is paid off, add that payment amount to the minimum payment on the next smallest debt
5. Repeat until all debts are paid off

Debt Avalanche Method

With the debt avalanche method, you pay off debts in order from highest interest rate to lowest. This approach saves you the most money in interest over time.

1. List your debts from highest to lowest interest rate
2. Make minimum payments on all debts
3. Put any extra money toward the highest-interest debt
4. Once the highest-interest debt is paid off, add that payment amount to the minimum payment on the next highest-interest debt
5. Repeat until all debts are paid off