Many individuals have to deal with debt management when they reach adulthood, and some of them aren’t sure of the best way to do it. That is where fintech comes into play. Fintech is financial technology, innovative advancements that deliver better money-related services to the average person. Here’s how it’s helping people manage their debt more effectively.
Debt Payoff Tools
Because fintech is ever-evolving, you can find a variety of tools on the market today, and new iterations are appearing constantly. If you have some outstanding debts that are weighing on your mind, you can use fintech tools to help repay them. For instance, some companies offer tools that will show you how to utilize the snowball debt payoff method and track your progress.
This is a method where you have multiple debt forms, and you elect to pay off your smallest debt in full before moving on to those that are more significant. You roll any amount used to pay off your first debts into paying off the larger ones. If you think of a snowball rolling down a hill, you’ll get an idea of where the term originates.
These tools are a common kind of fintech, but there are many more that can help you out in various ways.
Round-Up and Automatic Payment Apps
Round-up apps are another way fintech is helping individuals manage their debt. One way to use them is to set up a predetermined amount of money that the app puts aside whenever you get a direct deposit. Using one of these apps will help you save up for the debts you’re trying to pay off.
Now, there are also apps that automate payments for your credit cards or other outstanding bills. If you have a hard time remembering to pay off these debts by the time they are due, such an app will likely be a significant help to you.
Student Debt Apps
While many people carry credit card debt, there are other entities to which you might owe money. If you decided to pursue higher education and took out student loans, you may spend years trying to pay those off.
If you want to prioritize student loan payments, there are many apps powered by AI that can help. Often, these apps show you how to set aside money as soon as you get paid, so you can remember to prioritize paying your student debt over frivolous purchases.
<h2>All-in-One Debt Management Apps<h2>
There are plenty of apps that will let you manage specific debt types, such as student loans and outstanding credit card bills. However, there are also more general tools that allow you to take an all-in-one approach to saving and making payments. These applications typically let you track all of your finances in one instantly accessible space.
With these, you can see your debts listed, and also your investments, bank account balances, etc. If you want a more complete, comprehensive look at your finances as a way to tackle debt management, you might want to download one of these to your smartphone or tablet.
Anyone Can Use Fintech for Debt Management
Since financial technology is one of the fastest-growing fields, it makes sense that in the years to come, there will be even more tools that can help you manage your debt. Take advantage of the ones that are available now, and keep an eye on this sector as new options are hitting the market with each passing year that could be beneficial for you.