How to Build an Amortization Table + Snowball vs Avalanche (Which Pays Off Debt Faster?)

Most people make monthly debt payments…
but don’t actually understand what those payments are doing.

In this video, you’ll learn how to build an amortization table from scratch in Excel and use it to understand exactly:

1. how interest is calculated
2. how much of your payment goes toward principal, and
3. why debt can feel so slow to pay off

From there, we apply that same framework to two of the most popular debt payoff strategies:

1. Snowball Method (focus on smallest balances first)
2. Avalanche Method (focus on highest interest rates first)

Instead of just explaining them conceptually, we model both strategies step-by-step so you can see:

1. how long each strategy takes
2. how much interest you actually pay, and
3. which one is mathematically optimal

What You’ll Learn

1. How to build a full amortization schedule in Excel
2. The difference between interest vs principal
3. Why your balance decreases slowly at the beginning
4. How to apply extra payments strategically
5. The real difference between snowball and avalanche methods
6. How your payment decisions impact your net worth over time

These concepts align with core financial planning principles used in certifications such as the FP Canada CFP program and the AFCPE AFC designation, but are implemented here in a practical, step-by-step Excel framework.

Видео How to Build an Amortization Table + Snowball vs Avalanche (Which Pays Off Debt Faster?) канала Blue Label Learning