Posted by Valderas Financial Solutions LLC

Tools For Reducing Debt

Tools For Reducing Debt

Some time ago, I helped a client create a debt repayment plan and found impressive debt reduction free tools that I would like to share with you today. If you have credit cards, student loans, mortgages or any other debt you pay, this tool will help you do it as quickly and efficiently as possible.

In particular, it will help you to:

  • Organize various debts in one place
  • Determine how much you can save by investing more money on your debts and giving them priority
  • Calculate how much needs to be allocated each month until the last one is canceled.
  • Define the exact order to define the priority of the debt 

Below are some of the tools and their features.

UNBURY.ME

Unbury.Me is an online tool (free tool) that allows users to create an account, list all their debts and develop a payment plan tailored to their needs. The tool offers both the "Avalanche" method - the first debt with the highest interest rate, then the second, and so on, and this method from a technical point of view helps you save more money in the long run. 

The main features of Unbury.me

  • It is free and does not require authentication.
  • Returning users can sign up to log in and track current debt. You can create an account with your email or Facebook accounts.
  • Enter your debts and adjust your settings to explore payment plans that meet the debt method. This will generate more graphs illustrating debt over time.
  • Get debt repayment forecasts, such as total interest paid or date of payment.

Vertex Debt Organizer

With Vertex Debt Organizer you enter valuable information about your debts, which are used for the rest of the spreadsheet calculations, but it is also useful simply because everything is organized in one place. Sometimes you need to be aware of the financial situation to make progress, and this is why Vertex Debt Organizer is an important step in that direction. One of the key benefits of this app is the Total line, which shows the total debt balance and the full monthly payment.

QOINS

The Qoins team focuses on rounding up each expense to the nearest dollar, such as applying an investment quote and then apply that money to your credit card or student loans. The application was launched in January 2017, and it has saved about $1million in spare exchange, and the average monthly user saves about $50 - $55 which is equivalent to around $600 or more per year. To get started, log in to your financial account to start saving. (Note: the app costs $ 1.99 per month, but removes the savings fund commission instead of charging the card). For users of financial institutions that are less compatible and non-compatible, Qoins has an algorithm that analyzes your current account and puts small amounts of money each day for your account (usually between 50 and 5 cents). 

ChangEd

ChageEd allows you to save up your little change and applies it to your student's debt and the app is currently available for the iOS device

Key features of ChangEd

  • The ChangEd app synchronizes with bank accounts and analyzes your spending habits.
  • Identify small amounts of money that are not needed and stores them in a bank account provided by the FDIC.

Users should note that the app is not free. However, your monthly fee of $1 is indeed practical, especially since the average ChangEd user will earn $ 10,000 in additional student loan payments.

Your Debt Servicer’s App

When you are working to offset your debts, you can download the mobile application provided by your debt manager. Make sure your loan officer, creditor, or credit provider has a mobile app that you can use to make payments, view accounts,  and set payment terms.

For example, debtors can use the FedLoan mobile app to manage student loans with their manager. Many credit card companies have apps to make payments, track expenses, or even get bonuses.

DEBITIZE

A valuable rule in personal finance is to spend less than your income, but sometimes credit cards can push people to do the opposite. If you are planning to pay off your debt with your credit card, it's a good idea to put the plastic in a drawer and hold the key until you reach your goal. However, if you have a debt of another type or if you recently paid your credit cards, Debitize is an application that helps you avoid excessive accumulation.

Valderas Financial Solutions LLC
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