How to Choose a Debt Payoff App

Debt payoff apps can help you organize your debts and formulate an effective repayment plan. These apps come with various structures, features, and prices to suit many financial situations. With a bit of effort, you can find something that works for you.

Types of Debt Payoff Apps

There’s a variety of debt payoff apps and services. Some are designed to help you with budgeting, while others help you stay on track with bills or even consolidate debt.

Bill Organizers and Budget Planners

If you need help organizing your debts and budgeting for repayment, a bill organizer or budget planner app like undebt.it may be a wise choice. These apps generally let you add your debts to one account, select a repayment option based on your needs and preferences, and offer advice on prioritizing your bills. Essentially, they tell you to put more money toward specific debts.

With undebt.it, for example, you can choose from eight different debt payoff plans, including the popular debt snowball and debt avalanche methods, and track how you’re progressing toward full repayment.

Debt Reduction Spreadsheets

A debt reduction spreadsheet isn’t necessarily an app, but it can help you accomplish the same goals—understanding your debts and repaying them. While you could create a debt reduction spreadsheet on your own, doing so may be complicated and time-consuming unless you’re skilled with Microsoft Excel or Google Sheets.

Fortunately, companies like Vertex42 offer pre-made debt reduction spreadsheets to help you organize and prioritize your bills, and formulate a plan for debt repayment. The basic version of Vertex42’s debt reduction sheet is free and lets you choose from multiple repayment options, including the basics along with stair-stepper and custom strategies. It could be a good solution for someone with a handful of payments to manage. 

Debt Consolidation Apps

Consolidating your debt—i.e., using one loan or credit line to repay multiple debts—often makes it easier to manage your payments and may also reduce your interest costs. For instance, if you have four high-rate credit cards and juggling payments is difficult, consolidating them could make those debts more manageable. If you consolidate at a lower rate (or a lower average rate), you can save money overall, as well.

Certain apps, like Tally, offer debt consolidation for eligible users in addition to debt management guidance. Tally not only helps reduce your debt burden but also helps you formulate a plan for repayment and track your progress. This combination can be useful for someone struggling to manage high-rate debt and several monthly payments.

Automated Bill Payment Apps

Automated bill payment apps like Bright Money are another solution that could help with debt repayment. With these apps you can track and manage your bill payments in one place, helping you stay organized and reducing the likelihood that you’ll pay late or miss a payment entirely. 

For example, Bright Money analyzes your financial situation and credit card debts and helps you determine how much to pay toward each card (at least the minimum due). It then makes your payments for you according to your specific financial goals. When you progress toward repayment or improve your credit score, Bright Money sends you encouraging notifications that can help you stay motivated.

Factors to Consider When Choosing a Debt Payoff App

• Cost: Some debt payoff apps and services are completely free, have free trials, or require one-time or monthly payments from the start. Compare costs as you research apps to find one that aligns with your budget. 
• User-friendly interface: Some debt payoff apps offer more user-friendly interfaces than others. Consider testing different options to find an app that’s easy to navigate and clearly presents the information you want.
• Types of debt: Some services might allow you to link many different types of debts, while others focus specifically on credit cards.
• Repayment strategy options: Find an app that includes the repayment strategy you’d like to use. Some focus on one or a few specific debt repayment strategies, like snowball and avalanche, while others have more options and allow for custom plans.
• Account integration: Some apps let you sync bank accounts, credit card statements, and more. Others require you to enter information manually.
• Security and privacy: Since debt payoff apps often sync with your financial accounts, look at the security and privacy features offered.
• Compatibility: If you’re an Apple or Android user, check if the app you’re considering is compatible with your operating system.

How to Get a Debt Payoff App

• Online-only tools: Some debt payoff apps are online-only tools you access by logging in to an online account through a web browser. If you choose a service like this, you can sign up for an account on the app’s dedicated website to get started.
• Mobile apps: If you opt for a mobile app, you can download it via a link on its dedicated website, or through Google Play or the Apple App Store. Mobile apps may be free or paid, depending on the app you select or the features you’d like to access. 
• Desktop apps: Unlike mobile apps, desktop debt payoff apps run on your laptop or desktop computer. You can download a desktop app from your preferred company’s website. Like mobile apps, desktop apps could be free or paid. 
• Downloadable spreadsheets: The process of accessing a downloadable spreadsheet is fairly simple. You visit the website of the tool of your choosing and download the sheet. The sheet then usually appears in your browser’s “Downloads” folder, and you can open it from there, following any subsequent prompts to get set up.

Best Debt Payoff Apps