I'm sharing with you the Debt Priority Worksheet from my Big Finance Pack FREE!
You can find the rest of the Big Finance Pack HERE.
Debt Priority Worksheet
I love this page because it gives a method to figure out what to pay off first. It can be so hard to decide which method is best, Debt Snowball? Debt Avalanche? Something else?
To figure out our plan I basically did what I've recreated on this sheet. I ranked our debts by interest rate, by amount, and by annoyance, then put them in custom order for us. Ours ended up mostly in Debt Snowball order, with a few variations, and it was just right for us.
You can figure out what is just right for you with this page too.
How to Use the Debt Priority Worksheet
1. List your debts
List all your debts, in any order, including the current interest rate, current minimum payment, and current balance.
2. Rank by Balance
Rank your debts according to the balance, with the lowest balance being ranked #1, and work all the way through your list, ranking them all. The debt with the highest amount should have the highest number.
3. Rank by Interest Rate
Next, rank your debt according to the highest interest in the same manner, with #1 being the highest interest. If you have multiple debts with the exact same interest rate, you can choose to rank those in any order you like (I would likely go with the highest balance among them getting the higher rank, but you do you).
4. Rank by Annoyance
The last ranking is by annoyance. You don't need to rank all your debts in this column, and actually you don't have to use this column at all if you don't need it. But if you do, rank your most annoying debt as #1, and so on.
5. Customize your Priority Ranking
Once you have all your debts ranked with numbers, use that information to make up your own custom priority ranking in the last column.
There is no perfect order, so don't get stuck thinking you can't start if you don't have it just right. I wouldn't spend more than a few minutes on step 5, figuring out your priority ranking order. Make a choice and get started. If in a month or two it doesn't feel right, you can change it around if you like.
That's it. Now start paying off your personal #1 debt with confidence.
This is just one page from the Big Finance Pack, which is chock-full of useful and fun pages to help you get your entire money life on track.
You can find the rest of the pack HERE.
6 Ways to Make Paying Off Debt FUN!
How to Make Your Debt-Free Journey Fun
The Top 10 Free Debt Payoff Trackers