Using Money Management Apps to Deal With Debt

With the advent of smartphones, a new tool entered our lives — the smartphone app (application).  These days, there is an app for just about anything you can think of. And, if there isn’t one, you can bet somebody is working on it.

Financial services, with their emphasis on mathematical calculations, are a natural for apps. And indeed, many of them are crafted specifically for that purpose. Even better, using money management apps to deal with debt in Florida (as well as other states) can be quite advantageous.

Here is how.

The Benefits of Debt Payoff Apps

Planning  – First and foremost, these applications can help you plan your payments to the best advantage. They can offer step-by-step plans, tailored specifically to your income, level of indebtedness, monthly payments, and interest rate. You can compare different strategies, analyze the results and decide which method to employ based upon the type of debt you have.

Automation – Many of these applications are also capable of helping you automate your monthly payments. This will ensure that you never miss a payment, which can result in late fees, interest rate increases and reductions of your credit score. Some of them round up your day-to-day transactions then use the extra money to pay down debt. Others analyze your accounts and your spending habit, then use disposable cash to help pay down your debt.

Expenditure Tracking – Allowing some of these apps to “look over your shoulder” will enable them to help you determine how best to budget your income. In so doing, they help you find money you may have been spending on frivolities and apply it to debt eliminating your debt. They can also help you prioritize your payoff efforts, to achieve a faster payoff, or save money on interest payments.

Choosing a Debt Payoff App

The app you choose will depend largely upon the problem with which you need the most help. One of the best pieces of debt relief advice for Floridians (or anyone else for that matter) is to take some time to ponder your situation before deciding upon a course of action. That way, you are more likely to come away with a good result.

Factors to consider include:

Finding the Fastest/Cheapest Payoff – One of the features you will need to accomplish that task is a comparison algorithm. You will need the ability to compare and contrast the different payoff methods to find one that best suits your goals and your type of debt

Finding Additional Cash – Look for an application that squirrels away random bits of under-utilized cash to apply to your bills each month. Some of these, when linked to your bank accounts, monitor your spending, round up purchases to the nearest dollar and use those cents to help reduce debt. 

Overall Debt/Spending Assistance – Look for an application designed to serve multiple purposes. These apps learn your specific goals, whether it is saving more, eliminating debt or a combination of the two, and make suggestions after monitoring your spending patterns. These apps are also good for keeping an eye on all your accounts, as they are all recorded and monitored by the application.

They Usually Aren’t Free

Most of these apps work on a subscription basis, at a fee of $5 monthly or less. Some do offer the option of an annual payment for a lower amount. The good news is that once you’ve got your debt in hand, you can usually discontinue the subscription. Just be careful to avoid getting yourself into deep debt again. Then you will have no further need for the application.

Using money management apps to deal with debt can be a smart way to get your finances back under control. The key is to pick a strategy and stick with it until your debts are cleared up.