4 Debt Payoff Planners that Will Help You Take Control of Your Finances

Having a good plan for paying off your debt is the first and most important step in your journey to becoming debt free. Luckily there are plenty of debt payoff planner options available for those of us looking to pay off our debt but let’s take a deeper look at a few popular choices.

ChangED

The concept of ChangEd is to save your change and use it to pay your debts such as a student loan. After you input your bank account information ChangEd analyzes your spending and It looks for small extra amounts of money you could save (usually between .05 and $5). ChangEd then deposits those savings straight to a bank account which is FDIC-insured. Once all the accumulated small amounts of money reached $100, the app sends that $100 to your student loan servicer as an extra payment.

Student loans are a reality for millions of Americans. When they graduate or leave college they are left with on average $37,172 of student loan debt. This debt can end up costing you over $60,000 if you stick to the minimum payments every month. However, you could save over $10,000 if you make additional payments with ChangEd. Because the app takes out such small amounts  to save the payments will happen almost by surprise- making those student loans disappear fast than you ever imagined.

Mint

Mint’s primary feature is all about budgeting and tracking expenses. Budgeting requires a simple set up: After downloading and syncing your transactions, they will get auto-categorized into predefined categories. You can create your own subcategories but unfortunately cannot modify the top-level ones. The auto-categorization is far from perfect once Mint memorizes your transactions, it will automatically place them in the correct categories in the future.

Another prominent feature of the mint app is the goal tracking and managing feature. New goals, such as paying off credit card debt or saving for a new car, are simple to set up in the dashboard. Then the saving for these goals are shown in your monthly budgeting.

Mint also launched a free credit score tracking option, which makes keeping track of your entire financial picture as easy as logging in. This section gives you the chance to view your credit score, payment history, age of credit accounts and more. When it comes to controlling your finances, it is essential to have a good credit score and mint makes it easy to keep track of yours.

Unbury.me

Unbury Me was launched back in 2011 and is a simple loan calculator designed to help consumers pay off their debts. You can simply go to the homepage and enter your loan information. Once your information is added into the system, you can view Principal Paid, Interest Paid, Average Interest Rate, Pay-Off Date all in your personalized dashboard. Helpful graphs also show the principal, interest, monthly payments, and percent that goes toward the principal.

Having your debt info at your fingertips is a good start to paying off debts, but unbury.me goes a step further by also including information about payment plans. There are two options- the avalanche and the snowball payment method, and you can select the amount of money they will put toward a monthly payment for each plan. You are able to see how that plan can impact the amount of interest you accumulate and how long it would take to pay the debt off using the payment method of choice. You should take a look at both methods and thing about which option works best for you.

Unbury.me is an excellent tool because of all the options it offers to its customers. People can quickly and easily see how changing their payment amounts and strategies impacts the amount of money they’ll pay overall.

Debt Snowball Calculator

The debt snowball plan is a common strategy to becoming debt free. This plan pays off debts in order by rolling your payments over like a snowball from one debt to the next. It is dubbed the “debt snowball” plan because you take the payments you were making to a paid-off debt and apply them to the next debt on your list. Your payments, therefore, grow with time and build momentum and effectiveness – much like a snowball rolling down a hill.

The Debt Snowball Calculator shows the benefits of applying the payments of recently paid-off debts to other debts. This calculator can save you the time of doing it all yourself while saving you money. Before you start your debt snowball plan, you need to find the annual percentage rates and balances – You must know the annual percentage rates of all your debts.

Once you rank them by listing the debts with the highest interest rate down to the lowest interest rate to save the most money. You can find this out by searching around on your own and getting information on all your debts. An easier way would be to get a copy of your credit report which has this data all written out for you.

When you use this calculator to find how much you can afford to pay for each debt each month you will begin to extra amounts toward the debt at the top of your list. Your list will be in order from highest interest to lowest. The faster you pay off the high balances on these accounts, the faster your annual and monthly interest payments will drop.

When using the debt snowball plan, you still need to pay the minimum amount due on all your other debts, except the one at the top of your list. Once you pay off your first debt, apply the payment from that debt to the next one – don’t pocket the savings. Eventually you will work down the list until they are all paid off.

Conclusion

No matter what plan you choose to follow stick with it. Debt pay off is a long-term process that can take years to complete so you’ll be in for the long haul. With each one of these planners helping you find ways to save we hope you are inspired to find even more ways to cut spending in your life. Being debt free is not an impossible task. You just need a good plan.

If you have any helpful advice or tips for managing and paying off debt, leave a comment and share your experience in the section below.

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