However, this is often harder to do than it sounds. The feeling of being buried in debt, with no way out and no idea where to start, is a horrible one.
Once you enter all of your debt information, you can quickly compare which debt reduction method will work best for your situation and finances. The Debt Eliminator is a customized plan created by financial guru Suze Orman. A separate row will be generated for each debt, giving you an overview of your balances.
Usually the Debt Eliminator will suggest the debt snowball method to repay your debts. When will I be debt free? The answer to this question is something we all want to know. If you choose to be debt-free by a certain deadline, your monthly payments will be calculated based on that date. The tool will suggest additional options that encourage you to pay down debts with any savings you have, or set up a budgeting plan to control spending. Depending on your level of expertise and courage, you may need a more custom debt payoff plan with the support of a financial planner.
This is something LearnVest offers, through their financial planning program, for a monthly fee. The accountability aspect will help keep you focused and on track. Cost: Free to download more details below. A new app called Tally takes mobile debt management a step further, acting as an automated line of credit for your credit card debt. However, Tally will charge interest for transactions made on the line of credit. Depending on your credit history, your APR which is the same as your interest rate will be between 7.
Determine how much extra you can pay. This app defaults to the snowball method of debt payment, but you can pick the debt avalanche method, the highest interest rate strategy, or customize your own plan. Site does not ask for or store personal information. Cons: This tool focuses only on credit card debt. How it works: Enter your credit card debts, interest rate and minimum payments. Extras: Includes expenses worksheets with information on whether your spending categories are in line with national averages.
Bottom line: If you need a coach, this tool is great. You can use this app with or without an account. Enter an extra payment you can afford, and you will see your debt-free date move earlier when you use either the debt snowball and debt avalanche methods. Bottom line: A helpful tool. Cons: Not as intuitive to use as other debt control apps.
Have to go to settings to get payoff strategies and debt-free dates. How it works: Enter name of loan, original loan amount and remaining balance, interest rate, due date and minimum payment. Also has a spot for introductory interest rate. Categories include credit card, auto, bill consolidation, computer, education, medical, mortgage and other debt.
A colored pie graph shows remaining debt and the percentage of the total for each debt; also by category. Extras: Mortgage payment section includes fields for PMI and taxes.
Also available for Android 4. Immediate feedback when increasing payment amount. How it works: Enter your debt, interest rate, payment and due date. Use a slider to enter how much extra you can put toward getting out of debt.
Extras: Asks for credit limit on each account. When you move the slider to a higher extra payment, you get immediate feedback on interest paid and your new debt-free date.
Destroy your debt with the debt blaster payment enhancement plan. Note: The download includes an extended version of the credit repair edition for listing 20 creditors, and a link to a Google Sheets version for listing up to 20 as well. To use this approach in the worksheet, you'll need to choose the "User-Specified Order" methods described above. For more information, see Dave Ramsey's article on the debt snowball effect , or read his book, "The Total Money Makeover". For example, if you own a home, nearly everything except the main structure will need to be replaced within the next 15 years furniture, appliances, fixtures, roof covering, paint, flooring, furnace, AC, and so on. Number of payments left: This column displays the number of payment remaining until your debts are paid off, for both the current payment plan and your new RDR plan.
Can add a passcode, currency and payment reminders. Bottom line: Not the best, but pretty good.
Provides a VantageScore credit score. Cons: Pushes debt consolidation loans on almost every screen. Asks for too much personal identifying information. How it works: Gets in your business. You have to provide your name, Social Security number and answer three questions related to loan repayment to verify you are who you claim to be. Debt payoff plan starts with minimum payments, but you can move a slider to increase payments and get your new debt payoff date. Did we mention it pushes debt consolidation loans too much?
Cons: Crunches numbers for one debt at a time. Blasts you with advertising. How it works: Enter one debt at a time, with amount owed and interest rate. Then enter either your monthly payment or desired debt-free date, and the calculator will provide either the debt-free date or necessary payment to hit your desired payoff date. Not good for coming up with an overall debt erasure plan.
Prioritizes debt automatically. Shows differences between snowball and avalanche methods. Pros: Add as many debts as you want. Displays decreasing balances. Supports multiple currencies. Can back up and store data on Google Drive. Cons: Uses one or more accounts on device and profile data. Requires access to identity, photos and media files on device.
Bottom line: Requires too much personal info.
Cons: Supported by ads. How it works: Enter debts, payment and how much extra you can afford to pay. Get payoff strategy using snowball or avalanche method to get your debt-free date. Pros: Fairly easy to use. Bottom line: OK, but some others are better.
The apps we took for a test-drive are just a few of the debt management tools that are available online. Before downloading or paying any money for an app, decide what features are important to you and which are deal-breakers.