Nearly everyone owes some debt. According to CNBC, an average American has $90,460 in debt, including personal loans, student debts, and credit cards. There are various reasons why some people cannot pay off their debts. First, some people avoid paying debts out of malice. However, most people take loans without thinking about the steps of paying the debt. Although the loan you take is helpful to you now, it becomes burdensome when you do not pay it on time. If you fall in the latter group, there are apps that can help you pay off debt. The apps will help you pay the debts by helping you formulate a payment plan and track your spending. Without further ado, here are ten apps to help you pay off debt.
10. Undebt.it
Undebt.it helps you pay your debts by generating a plan. The app’s debt payment system uses Dave Ramsey’s Debt Snowball method. According to Ramsey Solutions, debt snowball method is a way of paying your debts in order from smallest to largest. Another strategy the app uses to help pay your debts is through debt avalanche. In this plan, the app lets you pay debts with the highest interest rates first.
9. Qoins
Qoins is an app that lets you save money. To register with the app, you will first have to link your savings account. Once you link your savings account, the app will automatically deduct some money from it. This money is set aside to pay your debts. Fortunately, you can decide the amount the app should deduct. According to Fool, you can set aside 10% or 30% for every deposit of over $100.
8. Debt Payoff Planner
Unlike many other apps, this app has eight loan categories, including auto and personal loans. Sometimes, your loan may not be related to any of these categories. Luckily, there is a section that allows you to include it in the “others” category. Like Undebt.it, it helps you repay your loan through debt snowball and debt avalanche. Another debt pay-off strategy the app offers besides the two is debt snowflake. In debt snowflake, you make one-time extra payments whenever you can. So, in this method, you pay off your debt as soon as you earn an income.
7. CreditWise
This is an app that tracks your credit and monitors your debts. Although Capital One made the app, you do not need to have an account with the bank to use this app. This app is helpful to those who want to know their credit score. Having a low credit score means you will not get access to future loans. According to Forbes, a credit score below 600 is poor, so you should strive to have a score of at least 600. Fortunately, this app has a credit score simulator. Each time you pay off your loans, the simulator awards you some points. Since you will not want a low credit score, you will feel motivated to pay off your loans in time to increase your score.
6. Tally
Tally is an app for people keen to clear credit card debt. To get the most out of the app, you will need a minimum credit score of 660. To determine whether you qualify for their services, you need to link your credit card. The app will analyze your card and keep track of your balances, due dates, and interest rates. Once Tally confirms you are qualified, you will immediately get access to their debt consolidation services. The app offers these services by extending a line of credit for a low-interest rate.
5. You Need a Budget (YNAB)
When you join this app, you will identify the nature of your debt, loans, or credit card. The app will prompt you to begin with debts with low balances. Next, you will decide the date when the debt should be paid. The app will then calculate how much money you should use each month to clear your debt. Besides being a budgeting app, it has educational videos that you can watch to sort out debts.
4. Debts
Sometimes we take small loans, and all we need is a reminder. This is where the app comes in. It has a simple layout that displays two categories: those who owe you or those you owe. If you owe any debt, you will list all the debts in the appropriate row. Also, the app allows you to specify further details about the debt. Each time you clear any debt, you will delete the entry from the list.
3. Changed
The app targets people who need to clear student loan debts. It works like a spare change app since it allows you to save as little as a dollar. With time, the money accumulates as you save with the app. The app will automatically use your savings to clear off your debt. It is up to you to dictate when the app should pay off the debt depending on the amount you choose.
2. Unbury.me
You do not have to create an account with this app to use it. However, if you want a place to save your loan information, it would be best to create an account. Once you create an account, you will feel certain details about your loan. After that, the app will inform you how long it will take to clear it. Thereafter, you can ask the app to create a payment plan.
1. Experian
Experian is primarily a credit-monitoring app. Therefore, it tracks all your loans. That means it awards you a score based on your loan payment habit. Besides motivating you to pay your loans, it also informs you in case of any fraudulent activity. Fraud is detrimental since it affects your credit score.
Conclusion
Debts are a major headache for most of us. While you are figuring out how to repay your debts, your phone blows up with demands from people you owe money to. To pay your debts on time, you need to set up a plan. Thankfully, these apps enable you to draft a plan that helps you keep track of your debt payments. If you are habitually in debt, consider any of these apps today.
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