Debt can provide leverage for achieving your goals, like buying a house, car, or education.
But debt can quickly become a burden. A recent survey found 54% of U.S. adults often feel stressed because of debt.
And debt is expensive. Monthly interest payments reduce your ability to save and invest. (No wonder 36% of Americans have more credit card debt than emergency savings.)
You asked, we listened
Over 100,000 people have trusted Tiller to navigate their financial journey. Managing debt is a key part of that journey.
So, with feedback from the Tiller Community, we developed a new Debt Payoff Planner you can customize to manage all your debt in one place.
Introducing the new Debt Payoff Planner for Google Sheets and Excel
The new Debt Payoff Planner makes tracking debt simple. It shows:
- Current balances on all credit cards and loans
- Interest rates for each liability based on your input
- Minimum monthly payments based on your input
- Progress toward your debt payoff goals
- Estimated monthly interest totals
- Projected debt payoff date (based on your inputs)
- Total interest paid over the lifetime of the debt
- Recommended payments to reach your desired payoff date
Customize Your Debt Payoff Strategy
The Debt Payoff Planner can model debt snowball, avalanche, or a custom ranking payoff strategy for up to 25 accounts for up to 30 years.
See how different payoff amounts and other variables impact your debt freedom date. Experiment with variables including monthly payment amounts and time to debt payoff.
Then make a custom debt payoff plan based on your actual balances and real-world numbers.
About the Debt Snowball and Avalanche Methods
The debt snowball and avalanche methods are two popular strategies for paying off debt. The debt snowball method prioritizes small quick wins to stay motivated, while the debt avalanche method focuses on minimizing total interest payments over time.
Debt Snowball
The debt snowball method prioritizes paying off your smallest debt balances first, regardless of interest rate.
For example, using the snowball method you would pay off a credit card with a $1,000 balance and 10% interest rate before paying off a card with a 15% interest rate and $2,000 balance.
The advantage of this method is psychological – successfully paying off small debts quickly can give motivation to keep tackling larger ones.
Debt Avalanche
The debt avalanche method focuses on paying off debts with the highest interest rates first, regardless of balance size.
For instance, you would pay off a high-interest credit card before paying off your student loans, even if the card has a lower balance.
The debt avalanche will likely save you more in the long run by reducing interest payments. However, it can be less motivating without the quick wins of eliminating your small debts first.
Custom Payoff Ranking Option
The Debt Payoff planner also provides a custom ranking model. Use this to target debts you simply want to eliminate first, regardless of any other factor.
Budgeting for Debt Payoff
It’s recommended to make a quick budget before making a debt payoff plan. A budget shows how much money you have to put toward debt after covering your living and other expenses.
A budget can also help you find expenses to cut, giving you more to put towards debt.
The Tiller Foundation Template includes a yearly and monthly budget. Several budgets are available at the Tiller Community Template gallery.
Combining the Debt Payoff Planner with the budgeting tools in the Tiller Foundation Template will give you a master plan for transforming your financial life.
However, while it’s recommended, a budget isn’t required to use the Debt Planner template. In fact, because it’s solely based on your account balances, you don’t even need to categorize transactions to use the Debt Planner spreadsheet.
Requirements and Installation
The Debt Payoff Planner is included with your Tiller subscription. It’s available now for Google and Excel spreadsheets powered by Tiller Money Feeds. And, of course, it’s 100% compatible with the Foundation Template.
If you don’t have a Tiller subscription, you can try the Debt Planner completely free for 30 days.
If you cancel your trial, you keep the template along with any other templates and data you’ve installed.
Installation
Install the Debt Payoff Planner using the Templates feature in the Tiller Money Feeds add-on for Google Sheets, or Tiller Money Feeds add-in for Excel.
Google Sheets
Click the “Templates” option in the main sidebar and click “Install”
Microsoft Excel
Click Tools at the top of the Tiller Money Feeds sidebar then Manage Templates and click “Install”
Click here to learn more about how to install and use the Debt Payoff Planner
Sign Up for a Free “Get Out of Debt With Tiller” Webinar
Learn more about the Debt Payoff Planner and how it can help you plan your debt payoff strategy with a free webinar, covering:
- How to install the Debt Payoff Planner in your Tiller-powered spreadsheet
- How to configure the Debt Payoff Planner for Snowball, Avalanche, or a custom ranking method
- Suggested weekly Tiller workflows to help you stay on track with your debt payoff goals
The webinar will be February 27 at 3:00 PM ET. Sign up even if you can’t attend and we’ll send a recording!
Questions and Feedback
Share your questions and feedback about the Debt Payoff Planner here in the Tiller Community.
