Almost everyone has debt. According to CNBC, the average American has $90,460 in debt, including personal loans, student debt and credit cards. There are various reasons why some people cannot repay their debts. First, some people maliciously avoid paying their debts. However, most people take out loans without thinking about the debt repayment steps. Although the loan you take out is useful to you now, it becomes burdensome when you don’t repay it on time. If you belong to the latter group, there are apps that can help you pay off your debts. The apps will help you pay off debts by helping you formulate a payment plan and track your expenses. Without further ado, here are ten apps to help you pay off your debts.
Undebt.it helps you pay off your debts by generating a plan. The app’s debt payment system uses Dave Ramsey’s Debt Snowball method. According to Ramsey Solutions, the debt snowball method is a way of paying off your debts in order from smallest to largest. Another strategy the app uses to help you pay off your debts is Debt Avalanche. In this plan, the application allows you to pay the debts with the highest interest rates first.
Qoins is an app that saves you money. To sign up for the app, you will first need to link your savings account. Once you have linked your savings account, the app will automatically deduct money from it. This money is set aside to pay your debts. Luckily, you can decide how much the app should deduct. According to Fool, you can set aside 10% or 30% for every deposit over $100.
8. Debt Repayment Planner
Unlike many other apps, this app has eight loan categories, including auto and personal loans. Sometimes your loan may not be related to one of these categories. Fortunately, there is a section that allows you to include it in the “others” category. Like Undebt.it, it helps you pay off your loan through a debt snowball and avalanche. Another debt repayment strategy offered by the app in addition to 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.
It is an application that tracks your credit and monitors your debts. Although Capital One created the app, you don’t need to have an account with the bank to use this app. This application is useful for those who want to know their credit score. Having a low credit score means you won’t have 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. Luckily, this app has a credit score simulator. Each time you repay your loans, the simulator awards you points. Since you won’t want a low credit score, you’ll feel motivated to repay your loans on time to boost your score.
Tally is an app for people who want to settle their credit card debt. To get the most out of the app, you will need a minimum credit score of 660. To determine if 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 that you qualify, you will have immediate access to their debt consolidation services. The app provides these services by extending a line of credit at a low interest rate.
5. You need a budget (YNAB)
When you join this application, you identify the nature of your debt, loans or credit card. The app will prompt you to start with debts with low balances. Then you will decide when the debt should be paid. The app will then calculate how much money you need to use each month to clear your debt. Apart from being a budgeting app, it has educational videos that you can watch to settle your 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 who owe you. If you have a debt, you will list all debts in the appropriate line. Also, the app lets you specify more debt details. Each time you clear a debt, you will remove the entry from the list.
The app targets people who need to clear student loan debt. It works as an aftermarket app since it saves you as little as a dollar. Over time, the money accumulates as you save with the app. The app will automatically use your savings to pay off your debt. It’s up to you when the app should repay the debt based on the amount you choose.
You don’t need 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 regarding your loan. After that, the app will let you know how long it will take to erase it. Afterward, you can ask the app to create a payment plan.
Experian is first and foremost a credit monitoring app. Therefore, it tracks all your loans. This means that it gives you a score based on your loan repayment habits. Apart from motivating you to repay your loans, it also notifies you in case of fraudulent activity. Fraud is harmful because it affects your credit score.
Debts are a major headache for most of us. As you think about how to pay off your debts, your phone explodes with requests from people who you owe money to. To pay your debts on time, you need to have a plan in place. Luckily, these apps allow you to write a plan that helps you track your debt payments. If you are usually in debt, consider one of these applications today.