While there are great options for debt reduction software and solid debt reduction spreadsheets, you can also use your iPhone or iPad to manage your debts. All of these apps use the snowball method of reducing debt.
The debt snowball method for reducing your debt focuses on aggressively eliminating debts one at a time, while still making minimum payments on your other debts. When you pay off your first debt from your list, you then take the monthly amount you have been paying to it and add it to the minimum monthly you re paying on the next debt in your list. When the second is paid off, add that amount to the monthly payment for the third debt in your list, and so on. It is how you get the snowball effect of paying off your debt.
Use one of these great iPhone and iPad apps to organize your debts all in one place, choose a plan for reducing debt, and then track your progress as you whittle down the balance of your debts.
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The Debt Free app for iPhone and iPad helps you to whittle away your debt using the debt snowball technique of eliminating bills.
Both the iPhone and iPad versions of Debt Free are easy to use with a clean user interface. You start by entering debts you want to pay off and then choose a strategy for eliminating the first debt. Strategies available are lowest balance, highest interest rate, highest balance or just list the debts to be paid off in any order that you choose. The app shows you how each of these strategies will affect the total amount of debt and interest, as well as the debt payoff date. Of course, each time you enter a payment toward your debt the variables (interest amount, remaining balance, etc.) are updated.
Handy calculators are included: a payoff date calculator (shows you how making additional payments affect the payoff dates and total interest paid), a loan calculator and a mortgage calculator.
Another helpful feature is the ability to set up notifications for payment due dates. Of course, there is an amortization table so you can view principal and interest for the remaining balance associated with each payment for each debt.
Other features include:
Cost: 99¢ USD to work with an unlimited number of debts.
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Another app for iPhone and iPad that uses the debt snowball method of reducing and eliminating debt is Debt Payoff Pro (there s also a Lite version).
Debt Payoff is nicely designed and easy to use with large calculator buttons. The currency used depends on your device s region setting. Enter your loans and other debt, then choose from one of four debt payoff strategies: lowest balance first, highest balance first, highest interest first and custom order.
Reports show your total debt amounts, remaining debts; total interest paid, total interest saved, debt payoff date and debt payoff time savings. A progress bar shows you percentages for remaining debt, and you can see how making extra payments affects your debt elimination plan.
The app includes an amortization table so you can view interest, principal and remaining balances and payments for each loan. You can also set up due date reminders for payments.
You ll find these calculators included:
Other features include passcode protection for your data, the ability to export payment lists and amortization schedules to HTML so you can review them outside of the app, customizable debt icons, backup and restore data and a lock feature so you don t accidentally delete a debt or payments entered.
If you use the Lite version and decide to buy Debt Payoff Pro, it s easy to transfer your data in the app s settings.
Cost: 99¢ USD to work with an unlimited number of debts. You can try Debt Payoff Lite for free, but you are limited to two debts.
Enter your debts, then take a look at how one of three payment strategies for debt elimination will work. You can choose from making only minimum payments (you won t use this one for long if you re serious about reducing debt), pay lowest balances first or pay off the debt with the highest interest rate first. Use any of these strategies with the debt snowball method.
Debt Strategy will perform what-if analyses, and it has some great-looking graphical reports that break down debt by category or remaining balance. You can set up payment reminders, so you pay your bills on time, override your home currency if needed and email reports. Your private financial data is password protected.
This app does not offer financial calculators like the other apps in this review.
Cost: 99¢ USD to work with an unlimited number of debts. Debt Strategy Lite lets you try the app for free but is limited to two debts.
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