Budget Calculator

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Budget Breakdown

Monthly Income

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Monthly Housing Expenses

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Monthly Transportation Expenses

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Monthly Educational Expenses

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Monthly Personal Expenses

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Monthly Debt Payments

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You still have $ remaining in your wallet. You can now use this extra money (or a portion of it) to quickly pay off your debts with the debt snowball method!

Try Debt Snowball Calculator For Free

Your expenses are too high right now! In order to use the debt snowball method and get out of debt faster you'll need to reduce some of your expenses (e.g. lower electric, grocery bills & entertainment). Go Back to Budget & Reduce Expenses Now!

Budget Calculator

One of Dave Ramsey’s “7 baby steps to achieve financial freedom” include “Pay off all debt using the Debt Snowball”. This simple statement is easier said than done for many, until now.

The budget calculator above is (part 1), once completed you will be directed to the snowball calculator (part 2). The entire process takes about 15-20 minutes to complete, and in the end, you’ll have a personalized plan to get out of debt fast! Did you ever think it would be this easy?

The bad news is: The budget tool above is designed to help you increase your cash flow so that you can afford the snowball method of paying off debt, but still, not everyone can afford to go this route.

The good news is: If you can’t afford the snowball method there are multiple options to help you pay off your debt much faster than when paying minimum payments on your own.

Free Budget Calculator

Is your goal to become debt free quickly?

Have high credit cards that you’re struggling to pay off?

Need to get out of debt fast without hurting your credit score?

If you’ve answered yes to any of these three questions, then you’ve landed in the right spot.

Before you can create an effective plan to get out of debt you need to first create a budget analysis.

By creating a budget analysis you get a clear vision of all of your expenses and income in one place, making it easier to find expenses that can get reduced or eliminated.

The tool does not require you to link your bank account to it or pay expensive fees to use it, like most of the other online budget calculators. You don’t even have to provide us your name or email address, just jump in and use the tool!

The point of this tool is to help you increase your available monthly cash-flow (i.e., how much money you have left over after paying all expenses). You will be able to pay more towards your debt after increasing your monthly cash-flow (wallet balance), resulting in getting out of debt faster and saving money.

Debt Snowball Method of Paying Off Debt

You focus on paying off the smallest debt first while continuing to pay minimum payments on all the rest, no matter what the interest rates are.

Your available cash-flow continues to grow in size after each debt gets paid in full and your credit score simultaneously will increase. As your cash-flow grows in size (like a snowball grows), you will continue to gain momentum and get closer and closer to the finish line.

Does the debt snowball method work?

The debt snowball method has been proven to be the most effective way to pay off debt.

Summary of how the snowball calculator works

  1. Pay off your smallest debt first, putting your extra money toward this debt while continuing to pay your minimum payments on the other accounts. You will be finished with this account on the date shown in the table.
  2. Now that the smallest debt is finished, take what you were paying toward that debt, minimum payment and extra money included, and pay this toward the next smallest debt each month. Again, make only minimum payments on the rest of the debts. Continue until this second smallest debt is also paid off.
  3. Keep going in this fashion until all your debts are paid off. The calculator will do 95% of the work; it’s a magical tool!

I can’t afford to pay any more than the minimum payment even on my smallest account

My wallet balance is showing a negative number after entering in all of my expenses (e.g., your mortgage payment or rent, credit card minimum payments and loan payments, groceries and gas, retirement contributions).

In this case, you’ll want to click back to the budget calculator and try to adjust your expenses. You can lower individual costs (e.g., the electric bill, grocery bill, cut out monthly subscriptions), and by doing so your available cash-flow increases.

Once you can create a positive cash flow, you can then use the snowball calculator.

Even after cutting expenses I’m still in the negative & cannot afford more than the minimum payment

You could use a debt relief program to lower the amount that you owe on each account. These plans can reduce a person’s credit score. However, if you have maxed out credit cards and can’t afford to pay more than minimum payments this situation is also negatively affecting your credit score. Therefore, something has to change. Here is a complete breakdown of each debt relief program including (pros vs. cons):

Have high credit card balances? Here are the 10 best ways to clear high credit card debt in 2019.

 

Dave Ramsey’s 7 Baby Steps to Achieve Financial Freedom

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