New: Debt Payoff Planner Budgeting Sheet
- Brian Page
- Feb 24, 2024
- 3 min read
Updated: Feb 27, 2024
The new Debt Payoff Planner is included with a Tiller subscription. Existing users can install it directly from the Tiller Money Feeds extension for Google Sheets and Excel.
Customize Your Debt Payoff Strategy
Avalanche Method
The avalanche method involves paying off your highest interest rate loans first. Upon paying off that loan, your savings will be applied to the highest interest-rate account. The process is then repeated.
Tiller's Debt Payoff Planner models the Avalanche Method.
This method will help you repay your loans the fastest and most efficiently. When your first loan doesn't get repaid quickly, the avalanche method can be discouraging.
Snowball Method
In snowball repayment, the smallest loan balance is paid off first. When that debt is paid, the money you put toward it is rolled over to the next-smallest debt.
Tiller’s Debt Payoff Planner models the Snowball Method.
When you pay off the smallest debt first, you'll eliminate your first debt faster and stay motivated. As a downside, this is the slowest and most expensive method.
Hybrid Method
Use the snowball method to pay off the loan with the smallest balance first. Switch to the avalanche method once you have gained the confidence you need to carry out the plan.
Tiller’s custom ranking payoff strategy can be used to create a hybrid method for up to 25 accounts for up to 30 years.
Managing Debt With Your Partner
Significant debt can trigger feelings of shame, guilt, or embarrassment. The fear of being judged, misunderstood, or rejected by a partner adds another layer of complexity to the conversation.
Think through the best time to meet with your spouse or fiancé. Talking on a weekend morning in a private setting is usually best. Make a commitment to talk and keep the conversation distraction-free.
Emotions can run high when discussing your partner's debts. Don't rush to judgment. Try to understand your partner's emotions and empathize with them. Be gracious to each other. To eliminate student loans, you must commit to working through the emotions associated with the debt together.
Student Loan Planner
Some couples are working through undergraduate and post-graduate school debt. Many who tackle this level of education face student debt of $50,000+. If this is the case with you, consider the professional service Student Loan Planner.
Student Loan Planner offers tailored consultations to help borrowers achieve long-term financial stability and optimize repayment. In most cases, consultations are provided to individuals who owe significant amounts of student loan debt, typically to graduate schools.
Related: three helpful articles for couples to learn more about managing debt as a team.
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