Best Debt Payoff Apps for September 2024 | The Motley Fool (2024)

Figuring out how to pay off debt can be a challenge, but it's a big part of a solid financial plan. There are different methods for paying off your debts, and the right one will depend on your specific situation.

Of course, the hardest part is often finding the money for a larger monthly payment. These are areas where apps to help get out of debt can be a lifesaver. On our list of the best debt payoff apps, you'll find the most highly rated options.

• Debt Payoff Planner: Best debt payoff app overall
• Qapital: Best automated debt payoff app
• Oportun (formerly Digit): Best debt payoff app for personalized debt payments

Bottom line: If you want a detailed plan to tackle debt, then the best app to pay off debt is Debt Payoff Planner. It lets you add debts to seven loan categories, including auto loans, personal loans, and credit cards. For any debt that doesn't fit into one of those options, you can choose "other." Then, you'll enter your monthly payment budget and choose the type of payoff plan you want. Payoff options include the popular debt snowball and debt avalanche methods, as well as your own custom plan.

Debt Payoff Planner will show you the optimum payoff plan and calculate how long it will take before you're debt free with each option. This makes the app perfect for the many consumers stuck between the debt snowball vs. debt avalanche methods.

One of this app's best features is that it works without connecting to your bank accounts and debt accounts. You can use it by manually entering your debt balances and payments. That's a real plus for anyone concerned about data privacy.

• iOS app rating: 4.7/5 stars
• Android app rating: 4.5/5 stars
• Cost: The full-featured version of this app (ad-supported) is free to download. The iOS paid version offers several options: $6 for a one-month subscription, $12 for a three-month subscription, or $24 for a 12-month subscription. The Friends and Family plan costs $9 for one-month subscription or $36 for 12-month subscription. The Android version offers in-app purchases ranging from $0.99 to $39.99.

Bottom line: For those who want to automate their finances, Qapital has everything you need. It offers a range of features that can help you with every aspect of your finances, including a useful round-up tool. If you use a debit card, you can have Qapital round up your purchases by an amount of your choosing, and it will save that money toward your goal.

The Dream Team feature allows you to set money goals with a partner. You both choose what to share and what to keep private.

Qapital also offers a Debt Wrangler™ feature that is designed to help users manage their student loans. This makes it easy to see how much you owe, lets you pick a payback strategy, and automates your debt payments. It also lets you explore refinancing options that can help you pay off debt more quickly and for less money.

To use any of Qapital's features, you must first connect a bank account. Once your free trial ends, you'll be charged a monthly fee for the plan you choose.

• iOS app rating: 4.8/5 stars
• Android app rating: 4.4/5 stars
• Cost: Qapital offers a 30-day free trial, the plans are $3 per month (Basic); $6 per month (Complete); $12 per month (Premier)

Bottom line: Oportun analyzes your income and spending habits after you connect it to your bank account. As it gets to know you, it saves what you can afford in your Oportun account. It then divides these savings among the financial goals you've created. You can make as many goals as you want for savings and debt payoff.

While Oportun isn't strictly for paying off debt, it works very well for accomplishing that and other money goals. It works automatically, and analyzes your financial situation every day.

• iOS app rating: 4.7/5 stars
• Android app rating: 4.1/5 stars
• Cost: $5 per month after a 30-day free trial

How debt payoff apps can help you

Debt payoff apps help you reduce and eventually eliminate your debt. The way this works depends on the app. Here are the most common features of apps to help you pay off debt:

• Payment planning: Gives you a step-by-step plan for paying off debt based on how much you owe, the interest rate, and your monthly payment amount. These apps often include different payoff options and compare their results. For example, the Debt Payoff Planner app lets you compare different strategies, including the debt snowball and debt avalanche methods.
• Automated debt payoff: Some of the most popular apps to help get out of debt automate the process as much as possible. Qapital lets you decide on a repayment strategy, and then handles loan payments for you. Oportun analyzes your checking accounts and makes withdrawals that you can afford to assign to the financial goals you've set.
• Technology does the heavy lifting: Forget about doing a budget spreadsheet by hand. Many apps can sync to your accounts, analyze your spending, and tell you what you need to know.
• Tracking and reducing spending: Debt payoff apps that connect to your financial accounts can record your expenses and make recommendations on how to budget. If you follow these tips, it could free up more money for paying off debt. Also, these apps can help you decide which debts to pay off first, like credit card debt and other debt with a high APR.

Learning about your options for managing debt and making goals to pay off debt can reap big benefits. By paying down your debt more quickly, you could save money on interest. You could also find ways to consolidate your debt.

Debt consolidation is when you get either a personal loan or a balance transfer credit card to pay off more than one debt. Then, you just need to worry about the single monthly loan or credit card payment, instead of multiple. Debt consolidation can be a good strategy if it helps you simplify your finances, get a lower interest rate, or both.

Another benefit of paying off debt is that it can increase your credit score. Debt can hurt your credit, especially credit card debt. Paying down your debt can help you build a good credit score. Some debt payoff apps even allow you to track your credit score.

How to pick the best debt payoff app for you

To pick the best app for paying off debt, think about what you need help with the most. After you answer that, you'll know which type of app to look for. Here are the most common examples:

• Are you looking for the fastest or cheapest way to pay off debt? A debt payoff app that lets you compare different payoff methods, such as Debt Payoff Planner, is exactly what you need.
• Do you have trouble paying more than the minimum each month? You should go with a debt payoff app that automatically saves money for you, such as Qapital or Oportun. These apps do the work for you -- all you need to do is set them up.
• Would you like to take a hands-on approach with your debt and be as involved as possible? A payment planning app would work well as a guide and to figure out a repayment strategy.
• Are you interested in an app to manage all your accounts and cut your spending? Try an all-purpose money management app. These apps typically let you set financial goals, like decreasing debt, and then make suggestions to help you reach them. In addition to debt payoff, they also give you one handy place where you can see all your financial accounts.

Since debt payoff apps work differently, it's all about finding the one that matches your needs. For some consumers, the best app is one that helps put more money toward debt payments automatically. For others, the best app provides a detailed debt repayment plan. Whatever you're looking for, there are plenty of apps available with the right features.

Typical debt payoff app fees and costs

Some debt payoff apps are completely free of charge, but others have fees. Monthly subscriptions are the most common type, and there may be the option to pay a yearly fee and get a discount.

Even when debt payoff apps have subscription fees, they're not very expensive. Most cost $5 per month or less. That's not a huge price to pay if the app helps you get debt under control, especially since you'll only need it until you finish paying off what you owe.