6 Tools That Can Help You Become Debt Free

J. Arky  Tue, May 28, 2024

Close your eyes and just imagine it: Being debt free. For many people working today, that feels like an impossible dream to realize. Between having to take out loans for your education, getting a mortgage on a house and putting expenses on a credit card, debt can feel never ending.

Thankfully, there are some modern tools that can help you become debt free. This doesn’t mean you won’t slip into debt here and there along the way — it’s almost inevitable these days — but these methods can aid you in getting yourself out, managing any future debt and staying in the black going forward.

Here are the six tools that can help you become debt free.

Budgeting Apps

Our lives are connected to our smart devices. One of the reasons they are so adept and useful is that you can download apps to help you with anything, such as budget and expense tracking.

“Apps like Mint and YNAB (You Need A Budget) are great for tracking expenses and creating budgets. They help you see where your money goes and identify areas to cut back,” said Rhett Stubbendeck, the CEO and founder of Leverage.

“YNAB teaches you to prioritize every dollar you earn, a fundamental shift that can drastically reduce debt,” added Ben Klesinger, the co-founder and CEO of Reliant Insurance Group. “Mint helps you manage your budget, keep tabs on your bills and track your investments all in one place.”

Debt Snowball vs. Debt Avalanche

Two popular strategies for debt repayment are the snowball and avalanche.

“The debt snowball method involves paying off your smallest debts first, which can provide quick wins and momentum,” Klesinger said. “The debt avalanche method, on the other hand, focuses on paying off debts with the highest interest rates first, saving you more money in the long run.”

Automated Savings Plans

“Services like Digit and Qapital automatically save small amounts of money from your checking account to a savings account based on your spending habits,” Klesinger said. “This incremental approach helps build an emergency fund, which is crucial for avoiding new debt.”

To Read More:

https://www.yahoo.com/finance/news/6-tools-help-become-debt-170028672.html