Home » Guides » Pay Off Debt: Spreadsheets That Will Help You Keep It Under Control

Establishing a solid plan to assist you in settling debts can be a bit tough, depending on how big the debt is and how much you know about it. You can quickly lose hope and motivation, especially if your financial resources are limited.
Thankfully, a spreadsheet can help you to manage your debts and also to prioritize them.

Why You Should Use A Spreadsheet

  • Spreadsheets are simple to use
  • Worksheets are the best customizable tools for many financial tasks
  • They are compatible with many financial tools
  • Helps you to determine the best order which you will use to prioritize your debts
  • Assists you to organize multiple debts in one place
  • Allows you to figure out the exact amount of money that you will direct to each debt every month
  • Helps you know how much money you will be able to save by prioritizing the debts and putting extra money on the debts

Step-by-Step Spreadsheet Technique You Can Use to Take Care of Your Debts

  • Step 1: Create a budget that will not drive you nuts
    It’s easy to create a budget spreadsheet even if you don’t have a strong financial background. Your bottom line in creating the spreadsheet is to find how much you can be left out with after allocating for your bills. You must, however, be very keen while making the allocations since things can turn out messy.
  • Step 2: Start with the layout
    List all your bills on the left column and the balances you owe on the next columns. Four columns are enough.
  • Step 2: Lay out a well-organized budget by shading
    Use clear lines to separate your columns. Otherwise, you will have a hard time trying to zone the areas you are interested in. The right way of organizing your spreadsheet is to shade the summary sections between the major groups.
    To sum up, the first section contains the fixed bills and the household utilities, while the bottom section is for credit cards bills. The lower part is shaded with a different color for easy visibility.
  • Step 3: Use the various excel formulas to project your future credit card balances
    By now, your bills budget is well structured and organized and thus the next step is to attack the debts which have plagued you for years. Make your additions or subtractions using the formulas function (fx), to know the cumulative payments.
  • Step 4: Recalculate your payments depending on the interests and then eliminate the debt
    With all your debts in one page and one table, it will be easy for you to monitor your payment progress. Remove the bills which you have already paid from the spreadsheet for motivation purposes, and to reduce confusion. Also, maintain a discipline of making the payments according to your goals so that you don’t mess things up.

The Power of Organizing Your Debts With a Spreadsheet

The power of using Microsoft excels (spreadsheet) in debt planning and budgeting cannot be underestimated. Even if you don't explicitly use excel, try to explore the carious debt planning and management tools available in the play store. Use them to make valuable decisions and commit to doing one thing at a time. It might be hard at the beginning, but you will be proud of your results in the long run.


Financial Literacy Incentives
Financial Literacy is your own responsibility that needs to be taken care of with each decision impacting money matters. We strongly recommend you to benefit from each occasion that arises intended at helping you build your financial knowledge.