New Tools Individuals Can Use To Get Out Of Debt

The number of tools individuals can now use to get out of debt is growing all the time. There are just so many options out there, with everyone seemingly having a favourite. 

The basic idea is to essentially help people by providing advice and tracking spending. A lot of new software as well as service-based businesses are stepping up to the mark to offer help to the community.

Debt Payoff Planning Apps

One of the top new tools is debt payoff planning apps. These allow anyone to enter their debts, be it their loans, credit cards, or any other debt that they might have, and then get the software to develop a plan to help them.

What’s nice about these services is that they focus on paying off the highest-interest debt first, and then go from there. Many have graphs and various trackers that keep you motivated and make you want to clear all your debt faster. 

AI-Powered Financial Assistants

With the rise of chatbots, AI-powered financial assistants are also growing in popularity and quality. These offer all sorts of features for individuals who want to get the latest advice on what they should do about their finances, but without having to go out of the house. 

These tools are still in development and many give out the wrong advice. But they are also here to stay, thanks to their inherent popularity and usefulness. 

Debt Consolidation Platforms

There’s also a significant number of debt consolidation platforms now helping people who owe lenders a lot of money. The founder of a service in this industry, Alex Kleyner, explains that they make it possible to reach more people and provide more help. 

Usually, people who get seriously into debt have a lot of money owed to many different lenders. When this happens, it makes it challenging to keep track of everything. That’s why it’s so critical to bring it all into a single loan, especially if the goal is to avoid bankruptcy. This makes it more manageable and often significantly reduces the average interest rate, reducing overall bills. 

Spending Alert Apps

Another type of tool is spending alert apps. These tell you when you’ve gone over your spending limit for the month, and when it might be a good time to pull back a little. 

These apps are handy for people who find it challenging to remember how much they’re spending from one week to the next. Spending alert apps give immediate feedback and tell you when your current strategy isn’t working and what you need to do about it. 

Budgeting Trackers

Finally, you can find budgeting trackers that will connect to your bank account and tell you when you’re spending too much, and when you’re under your current budget. 

What’s nice about these is that they let you redirect your savings to your debt. You can see what you need to pay off and how it might benefit you financially over the long term. You can even use these tools to cancel subscriptions that you’re no longer using.