You finally have reached the point where you are sick and tired of the debts that you have and you’re determined to begin working on reducing it. There are many excellent reasons to get out of debt: financial freedom, a dramatic drop in stress, and peace of mind to name just a few. One problem that many people have is finding an easy and effective way to track their debt so that they can see the progression of their debt reduction. The Pay Off Debt iPhone app can help you do exactly that by helping you create and organize a debt snowball. In addition, the app can also help you to immediately save money which can help even more with your debt reduction goals. Here are a few ways that Pay Off Debt can save you money:
You’ll see that little things add up.
With the app, each time you record a payment to a debt, you can tap it to view the Debt Details — details that show you the impact of your payment on the life of the loan via an amortization table. Once you start to see how every dollar helps, you’ll begin to question purchases that you don’t really need, or that you might otherwise make on impulse.
You’ll spend less, because you’ll pay more attention.
Having information on your debt reduction progress right in your pocket makes it easy to check in frequently on how you’re doing. You can see your planned debt free date approaching right on the Summary screen. In other words, the app helps you get obsessed with becoming debt free. And that’s a good thing, because the more you want to be debt free, the less money you’ll unthinkingly waste.
You’ll pay less interest.
Likewise, the sooner you get out of debt, the less you’ll pay in interest. Suppose you owed $5,000 on a credit card at 18% interest. If you only paid a 2% minimum payment each month and you never charged anything else to it, it would take you 35 years to pay it off. It’d also cost you an obscene amount of interest: nearly $13,000. Wouldn’t you like to save money instead of paying it to the credit card company?
Use even the most bare-bones debt snowball where you pay $100/mo toward the debt every month (instead of just at the very beginning), and you can knock more than 27 years and about $8600 in interest off. Add an additional amount to your snowball — say $50 a month — and you can save even more. You can use the Pay Off Debt app to experiment with how much faster your debt will be repaid by varying the Additional Amount you plan to send toward your debts.
You’ll change your thinking.
As you start to see debt as something that costs you money and causes you to struggle — instead of something that makes it “easy” to get the things you want — you’ll begin to look at your money differently in general. You’ll go from a debtor mentality where your money is already spent before you even get it, to a wealth-building mentality. You’ll save and invest your money, instead of spending it on things you may not even remember a year from now. And as you change your thinking about money, you’ll probably also become more contented. Don’t underestimate how great that feels, and what an impact it can have on our bottom line.
You can download Pay Off Debt from iTunes, or click to learn more about it here.