19 Aug Free Debt Payoff Calendar
If you’re looking for a free debt payoff calendar, you’ve found it! Using a calendar for debt repayments is important for keeping yourself on track and within the limits of the goals you set for yourself. This part of the SMART goals framework, an important tool for achieving what you would like. SMART stands for specific, measurable, achievable, relevant, and time-bound.
Using the SMART goals system is fantastic for paying off debt. Let’s say you have R100 000 in debt. You want to pay it off in 2 years or less. Your goal is time-bound and achievable, assuming you make more than R20 000 a month. It’s also relevant to your life plan, as you plan to live debt-free. How would you make it measurable?
This is where a calendar is handy. It’s easier to pay off your debt in increments rather than all at once. You should set goals for yourself and dates you would like to have debt paid off. So, R4 200 a month for 2 years means your debt repayment goal is specific, measurable, achievable, relevant, and time-bound.
Let’s discuss different debt repayment methods, how to create a calendar for yourself using a budget, what to do if you have too much debt, and look at an example payoff calendar.
Debt Repayment Methods
There are two debt repayment methods often discussed in the personal finance world: the snowball and avalanche methods. The snowball method prioritises paying off debts with the smallest amounts first. This provides a sense of gratification and helps you feel motivated to pay off your debt faster.
The avalanche method pays off debt with the highest interest rates first. This is useful for helping you not accrue further unnecessary debt.
What method should you use? This depends on your debt amount. If your debts are relatively small with high interest rates, like store card debt, we recommend the avalanche method. On the other hand, if your debts are larger, like mortgage or car payments, we recommend that you use the snowball method to stay motivated.
The Calendar
This section will provide you with an example calendar and instructions to create your own.
Example Calendar
Anna has R250 000 in debt and makes R30 000 a month after taxes. She pays R10 000 in rent, spends R3 000 on food, R1000 on petrol, and R1000 on expenses. This leaves her an extra R15 000 to spend. If she pays R10 000 toward her debt every month, she’ll have paid off her debt in just over two years.
She decides to budget carefully and lowers her spending using the 50-30-20 method (50% to living expenses) and gives herself R3 000 towards her emergency fund every month and R2 000 towards discretionary spending. She also cuts down on unnecessary expenses like subscription services and eating out, putting the extra money toward her debt.
She uses this template to track progress toward her goal. You can download it and make a copy of the PDF to customise it.
Remember, to meet your debt repayment goal, you have to create goals that are specific, measurable, achievable, related, and time-bound. Decide how much you can afford to pay toward debt every month and set time limits for yourself.
What If I Can’t Afford to Pay My Debt?
If you can’t meet living expenses while paying off debt or can’t afford to make minimum payments, it’s time for professional help, you’re over-indebted. Use a debt counselling service like True North Debt that will negotiate with creditors to reduce debt repayments, and interest, and get longer repayment periods.
Contact True North Debt to find out more about how you can live without the stress of over-indebtedness and its emotional toll, get financially fit, and enjoy legal protection from creditors. Debt help is here, make use of it.