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Figuring out how to pay off debt can be a big challenge, but it's a big part of a solid financial plan. There are different methods for paying off your debts, and the right one will depend on your specific situation. Of course, the hardest part is often finding the money for a larger monthly payment. These are areas where apps to help get out of debt can be a lifesaver. On our list of the best debt payoff apps, you'll find the most highly rated options.
Bottom line: If you want a detailed plan to tackle debt, then the best app to pay off debt is Debt Payoff Planner. It lets you add your debts and has eight loan categories, including auto loans, personal loans, and credit cards. For anything that doesn't fit into one of those options, there's a category that focuses on other types of loans. Then, you'll enter your monthly payment budget and choose the type of payoff plan you want. Payoff options include the popular debt snowball and debt avalanche methods, as well as your own custom plan.
Debt Payoff Planner will show you the optimum payoff plan and calculate how long it will take before you're debt free with each option. This makes the app perfect for the many consumers stuck between the debt snowball vs. debt avalanche methods.
READ MORE >> Debt Payoff Planner review
RELATED: See The Ascent's debt snowball calculator to see which debts you should pay off first.
Bottom line: For those who want to automate their finances, Qapital has everything you need. It offers a range of features that can help you with every aspect of your finances, including a useful round-up tool. You can have Qapital round up your purchases by an amount of your choosing, and it will save that money towards your goal.
Qapital also offers a Debt Wrangler? feature. This makes it easy to see how much you owe, lets you pick a payback strategy, and automates your debt payments. It also lets you explore refinancing options that can help you pay off debt more quickly and for less money.
READ MORE >> Qapital review
Bottom line: Oportun analyzes your income and spending habits after you connect it to your bank account. As it gets to know you, it saves what you can afford in your Oportun account. It then divides these savings among the financial goals you've created. You can make as many goals as you want for savings and debt payoff.
While Oportun isn't strictly for paying off debt, it works very well for accomplishing that and other money goals. It works automatically, and since it analyzes your financial situation every day, it helps ensure you're putting the right amount towards your debt.
READ MORE >> Oportun review
Bottom line: With Mint, you can connect all your financial accounts to one easy-to-use app. That includes your bank accounts, credit cards, loans, investments, and more. The app comes with an expense tracking feature and a budgeting tool that can help you reduce your spending. In addition, it has a bill tracker with payment reminders.
Since it offers so many features, Mint is ideal if you want a budgeting app that helps you pay off debt and improve your overall personal finance situation. The best part about it is that it keeps all your accounts in a single place.
READ MORE >> Mint review
Debt payoff apps help you reduce and eventually eliminate your debt. The way this works depends on the app. Here are the most common features of apps to help you pay off debt:
Learning about your options for managing debt and making goals to pay off debt can reap big benefits. By paying down your debt more quickly, you could save money on interest. You could also find ways to consolidate your debt.
Debt consolidation is when you get either a personal loan or a balance transfer credit card to pay off your debt. Then, you just need to worry about the single monthly loan or credit card payment, instead of multiple. Debt consolidation can be a good strategy if it helps you simplify your finances, get a lower interest rate, or both.
Another benefit of paying off debt is that it can increase your credit score. Debt can hurt your credit, especially credit card debt. Paying down your debt can help you build a good credit score. Some debt payoff apps, such as Mint, even allow you to track your credit score.
To pick the best app for managing debt, think about what you need help with the most. After you answer that, you'll know which type of app to look for. Here are the most common examples:
Since debt payoff apps work differently, it's all about finding the one that matches your needs. For some consumers, they need an app that will help them put more money toward their debt payments automatically. Others want an app that will give them a detailed debt repayment plan. Whatever you're looking for, there are plenty of apps available with the right features.
Some debt payoff apps are completely free of charge, but others have fees. Monthly subscriptions are the most common type, and there may be the option to pay a yearly fee and get a discount.
Even when debt payoff apps have fees, they're not very expensive. Most cost $5 per month or less. That's not a huge price to pay if the app helps you get debt under control, especially since you'll only need it until you finish paying off what you owe.
Some debt payoff apps are free to use. Other debt payoff apps come with a cost. If you choose to use a paid debt payoff app, you'll likely pay a monthly subscription fee. Most paid debt payoff apps are affordable and cost $5 or less per month.
Debt payoff apps work in several ways. For starters, they can help you better organize your debt to see how much debt you have, prioritize which debt you pay off first, and come up with a plan. Some debt payoff apps also help automate the debt payoff process by putting extra money toward debt payments. Some debt payoff apps may also connect to your financial accounts to help you better track your spending and stay on budget, so you can free up more money to put toward your debt payoff goals.
Debt payoff apps are safe to use. If you're using a reputable and well-known debt payoff app, you can feel confident about your safety. Always use a reputable app, especially if you plan to connect your financial accounts. You should be cautious when using brand-new apps or apps with minimal reviews or brand presence.
There are both free and premium debt payoff apps available. You can find many free debt payoff apps if you don't want to pay for one. If you're open to both, some premium apps start you off with a free trial period to see if you like the service.
Debt payoff apps provide features that help you put more money toward your debt. Some include payment planners that show you different methods of eliminating your debt and how long they would take. Others link to your bank account and automatically save money for you to put toward your debt payments.
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