This software is installed on your computer, so if you feel uncomfortable with using an online app, you have two good alternatives for Windows and one for Mac. While none of these are free, the price ranges from $15 to $40, which is worth it compared to the interest savings you'll get by paying off your debt.
A spreadsheet template is used with software like Microsoft Excel, Google Docs/Drive, or Open Office Calc. The template provides all of the financial formulas and formatting, so you don't have to mess with those things. You just plug in your numbers and take a look at the results.
Online apps definitely have some advantages, like being able to access your debt reduction plan from any computer (password required). There are three online apps that are free, one with an option for a paid upgrade.
- Ready for Zero is 100 percent free unless you want to add online bill pay services for just under $5 a month to automate making payments.
- Dave Ramsey Total Money Makeover Snowball Debt Tool, which is free to use and to print planning information from, but you have to create an account and join the Total Money Makeover to save your data. After seven days, you'll be charged if you don't cancel.
- Debt Coach provides a thorough debt payoff plan and can connect you with services that will help you to attain your goals.
Debt Reduction Software
You don't necessarily need a financial planner to come up with a personalized debt reduction program. Plenty of low-cost and free software, online apps, and mobile apps are available to help you come up with an intelligent, manageable plan for methodically eliminating your debt. These tools help choose the right strategy for paying down loans, credit cards, equity lines, and other debts, and many use the debt snowball method for paying off debt.
Below you'll find a description of each type of debt reduction planning software or app. It's a good idea also to design and track a budget while you're paying down debt and certainly after you do so to avoid getting back into the debt track. You can either use budget software, online apps, or mobile apps, listed at the bottom of the page.