Friday, January 08, 2010

Cool tool

I found something yesterday morning while I was wasting time on the computer before work. Lis and I have been talking about the "snowball method" for killing off debt--we certainly have our share--and she told me there was a chart you could use to enter your debt information and create a plan to pay it off. I thought this involved lots of math (not good at it) or lots of calculating (no patience for it)... but I found a good online explanation, and an Excel download that makes the whole thing easier.

The theory, based on Dave Ramsey's book, The Total Money Makeover, is that you create a debt "snowball" that rolls over from one account to the next as you pay it off. What I found online was a downloadable Excel program that allows you to customize according to your own debt. I found the spreadsheet and this explanation of the Snowball method at

This was a valuable tool for me and E to start planning about how to manage our new second income. I thought I'd share. I first heard about Dave Ramsey's methods on You can read her post about "Financial Baby Steps" here.

Happy debt reduction, everyone!


  1. Hi Heather
    This is a great idea... I used to make my own excel spreadsheet years ago when i really needed to get things under control.. the beauty of it too is it a a positive reinforcement... when you see your achievement.. you want to achieve more!!

    Lucky for me I've been working so hard over the last couple of years i just stopped spending money.. though much easier for me with no kids...

    Good for you sharing this idea.. have fun!! xx Julie

  2. I didn't check it, but it's probably the one I tried to use a while ago - it's neat in theory, there's just that whole "sticking to it" thing I'm not making much progress with...

  3. I found your blog from a friends blog and really have enjoyed reading and relating to your posts. Thanks for sharing. :-)

  4. This is a really good method, I love making lists and crossing things off. I feel so accomplished when I am able to do that! Maybe one day I will have a real job and actually be able to do this! haha