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How I Used an App to Create a Debt Payoff Plan


Debt, the very thing we struggle with and yet we feel like it never goes away. We read books, watch videos, and seek out different ways to handle our debt. For me, I found freedom by using what I have on me at all times, my cell phone. I use the Debt Payoff Planner App by OxbowSoft LLC (also on iTunes) and it is truly a huge help! It’s an exciting new way to tackle your debt and feel more in control of your finances. Let me show you how it works.

Add All Your Debt

Yep, you read that right! It needs all your debt. Some people are confused by debt and what they should include. Let me help simplify it by saying that debt is a bill that will go away once paid off. It’s not rent, groceries, a cable or cell phone bill. You need to provide the debt amount (such as balance on your mortgage and monthly payment) and how many payments you have left. Followed by every loan, credit account, and school debt.

Add Your Spending Budget

You need to let the planner know how much of your income is for debt payoff each month. If you don’t have a budget, you need to create one. You need to make sure that you can keep your utilities on, be able to eat, put a little into a savings account, and have a way to work to make your income. If you have a budget, it’s a good time to take a moment and review it to see if you can adjust free up a bit of money here or there. Cutting down on your Starbucks trips and looking at ways to save on food are excellent places to start. The app needs to know how much you have to spend on the debt so that you can truly become debt-free.

What Is Your Strategy?

Lastly, the app allows you to choose between two planning strategies that can be very helpful. The Snowball strategy is one in which your focus is on paying off the smallest debt you have and work your way up. You still make a monthly payment on everything but as debt drops off, more money is available to pay on your heftier debt.

You can also choose the Avalanche strategy that places focus on your higher interest debt. Why is the high-interest one to target? Your payments to the higher interest debt are going to be larger than monthly due as an effort to whittle away at the interest accumulated and interest added in the coming months. As you save on interest accumulation, you save money! You can also focus on always paying credit cards in full each month rather than allowing it to accumulate interest and pay extra on your purchases.

Which one you choose is completely up to you and there is no wrong answer. The Snowball method is a tried and true method that many have used with major success. They experience quick gratification as small debts disappear quickly. It is a process and can take a while to get there and can make the end of your debt a long way off. Avalanche will help you save money on interest and can feel like you aren’t making much ground. Some people give up on this plan.

Calculate Your Schedule

The greatest feature of the planner app is that once all information is in, it will tell you how long it will take to free yourself of your debt. I am currently facing two years of dedicated work and I can’t be more excited!

Make your life easier when managing your money and try the app. It is so easy and convenient that you will want to get everyone on board.

Read More

How it All Began

Finance Management in Your Forties: 5 Important Factors

Ashley’s Bloated Budget

One Comment

  • Reply Akasha |

    I downloaded it, but I’d rather not focus on one debt at a time. I’m focusing on 5 accounts that are around $2K each. All five are my current goals.

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