Using Debt Snowball Apps to Pay off Debt

Software and Mobile Apps That Help to Reduce Debt

hands wearing mittens holding large snowball
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The Debt Snowball plan—developed by Dave Ramsey, popular personal finance author and radio and TV personality— calls for paying off your smallest debt first to give you a quick boost that should motivate you to pay off other, larger debts.The Debt Snowball method for paying down and getting rid of debt isn't about math as much as it's about motivation.

Before You Begin 

Before you start paying down your debts using this or any other method, you'll have to get organized. Gather statements for all your loans, including credit cards with balances and any other debts you have outstanding. Ramsey did not specifically include paying off mortgages in this plan, so whether you include that debt is up to you.

Ignore the interest rates when you're listing the debts. You're only concerned with the current balance on each debt. If two debts happen to have identical balances, you can use the interest rate as your guide and give that debt a higher priority but this is not what is important.

Now put $1,000 into a savings account for emergencies. If you don't have $1,000 right now, save that amount up before you get started. Make minimum payments on your debts until you set aside this money. 

Here's How the Debt Snowball Works

Now it's time to get started. Make a list of your debts from the smallest to largest. The smallest one should be at the top of the list. Keep making minimum payments on all your debts except for this one, the one with the smallest balance at the top of the list. Make more than the minimum payment on this one, even a double payment if you can to manage it. 

Repeat this process each month until that debt with the smallest balance is paid off. Now focus on the next debt on your list. Take the amount you were paying on the first debt and put it toward the second one, using that plus the second debt's minimum payment as your monthly payment amount.

You see where this is going now. When the second debt is paid off, you'll use those funds to pay down the third debt along with that debt's minimum payment.

Debt Snowball Software

It may help you to use software to support your debt reduction efforts, as they are with you virtually all the time and are unavoidable, which is a positive trait when it comes to managing your money yourself.

These tech tools will not only sort your debts for you, but they'll also give you details on interest savings​ when you can expect to pay off loans and other debts, and other perks that can help keep you motivated toward becoming debt-free.

The Best Apps

Using the software above will certainly help, but having instant access 24 hours a day is what some people need. Some apps are designed better than others, some are even focused entirely on repaying debt.

Quicken: Available now as a mobile app for both Android and iOS, quicken is the king of financial software. Although not developed solely for debt repayment, you will find the powerful features will balance your finances in a way that allows you to repay debts faster and more efficiently.

Debt Payoff Planner: Also available on both Android and iOS is Debt Payoff Planner, an easy-to-read interface that builds a "payoff plan" for your debts. The app shows a complete picture of your goals, interest, and payments in a way that is neither confusing or intimidating.

Debt Payoff Assistant: Currently available for iOS only, this app works similar to Debt Payoff Planner. It is a simple app that shows monthly savings and where they can best be allocated within your Snowball repayment strategy.

Debt Free: This app is a consistent top-seller within the App Store, due to its beautiful interface and intuitive design. If you are looking for a clean way to show detailed financial plans, this is the app. As of November 2018, it is only available on the App Store.

The Bottom Line

Although certain apps can assist with using this debt repayment method, the biggest obstacle most people encounter is inaction. Taking the steps to repay debt can be frightening, but there is no better time to get control of your financial future than right now.