Three Free Online Debt Reduction Tools

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Best Free Online Debt Reduction Tools

Young couple with receipts and documents using calculator
Richard Elliott / Getty Images

These three free online apps help you come up with a plan for reducing and paying off your debt. You will need to enter some debt details, like the current balance of loans, credit cards and mortgages and corresponding interest rates, then you'll get tips for the best way to pay off debt and graphical tools that help motivate you to stick to your plan.

The top three free online debt reduction apps are:

  • Debt Payoff Planner
  • Dave Ramsey Total Money Makeover Snowball Debt Tool
  • Ready for Zero

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Debt Coach Online Debt Reduction Solutions

Debt Coach home screen.
Debt Coach. Bills.com

The Debt Coach free online tool for finding debt reduction solutions is fairly comprehensive. Rather than recommending how to pay off debt entirely on your own, Debt Coach helps people understand what solutions are available to help them pay down debt. These solutions are formulated from a combination of Bills.com market data, debt management information from reliable sources and from Bills.com's partners.

Even if you don't want outside help, take Debt Coach for a spin because it is a very interesting tool that shows users how to choose the best option for getting rid of debt with considerations like minimum payments, optimized payments, credit counseling or debt management planning, debt settlement, and cash consolidation loans. Recommendations are objectively based on the data you enter for your debt level, financial goals and preferences. Options for lowest cost, monthly payment, or shortest time to debt free (based on your goals) while being sensitive to other intangibles such as your credit rating and the typical experience of following a particular program.

As you go through answering questions and entering data in the online interview, you'll see a Debt Assessment on the upper right side. Different aspects of how debt affects your life are listed under the Debt Assessment, like level of stress, credit worthiness, cash flow and net worth.

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Dave Ramsey Total Money Makeover Snowball Debt Tool

Couple reading papers together on sofa
Sam Edwards / Getty Images

This very simple free online tool uses the debt snowball method to help you come up with a plan for paying off debt. You can use this tool to do an online analysis and to come up with a payment plan, but to keep this free, you'll have to take notes on payments you'll make, debt pay-off dates and other details and use any print outs that are offered. Alternatively, you can save your work and refer by to it by joining the Total Money Makeover online program (free 7 day trial) for $7.49 or $9.95 per month, depending on the program you sign up for.

  • Add debts to a list, then you can click on the arrows to move through the months and see a graph of progress toward paying off the debt.
  • Sort debts into any order you like or select Sort Dave's Way, which lists the debts in ascending order by balance (lowest balance first, per Debt Snowball method rules).
  • Apply extra payments and see payment schedules, use the Debt Overview tab for a graph with payoff dates.
  • FAQ explains how to use the Debt Snowball tool.
  • Freedom Countdown print out shows a series of squares that represent the remaining months for each debt until the payoff date. Cross off each month when you make a payment as a motivational tool that allows you to see your progress.

Check out the Debt Snowball Tool at MyTotalMoneyMakeover.com.

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Ready for Zero

Pay off your debts with REady For Zero.
Ready for Zero. ReadyForZero Inc.

This free online debt reduction app provides tools and information to make a debt reduction plan on your own. Ready For Zero adds some handy automation for payments and account balances, too.

Start off by adding your loans, credit cards, mortgages and other debt. Ready for Zero securely stores your log in information for each account so that account balances automatically update. Ready for Zero then helps you come up with a plan to pay off your debt by showing the amounts you need to pay on each debt every month. The app shows you when your debts will be paid off and the total interest you'll pay.

You can make payments on debts directly from Ready For Zero, and the app will tell you how much to pay each month. You can set up automatic recurring monthly, biweekly or one time payments with Ready For Zero Plus, a $4.99 per month service which will make unlimited payments. You are not required to sign up the Plus service to use this app, adn if you elect to go the free route, you will just have to make payments yourself. You could use a free online bill pay service (the paid ones cost more than Ready For Zero Plus) or Manilla to set up those automatic payments.

Ready For Zero does some interesting planning for you. Say you get a big bonus check. The app will adjust recommended payments up that month so you can pay off your debt sooner. Resource Centers provide targeted information and questions and answers for specific financial concerns like mortgage management, credit scores, debt consolidation and budgeting. There's also advice for reducing debt and your credit score.

The Ready For Zero Savings Platform searches for financial products to help with lowering interest rates and reducing debt faster. The Savings Platform does not share your personal information with these companies behind these offers, and you can turn the Savings Platform off. iPhone users can download a free app that syncs with the online app.