5 Ways FinTech Can Help Decrease Credit Card Debts

fintech 5 Ways FinTech Can Help Decrease Credit Card Debts

Technology can make life easier for consumers in a multitude of different ways. These days, we use technology to stay connected to our friends and family, store information on the cloud, and even find answers to questions with the all-knowing Google. However, the rise of Financial Technology, aka FinTech, could now mean that your technology could assist with decreasing credit card debt too.

Fintech applies to everything from online banking applications to artificial intelligence tools that can deliver custom suggestions on how to improve your spending. If you’ve been enjoying the benefits that technology can bring to all other areas of your life, and you’ve decided that it’s time to start leveraging tech in finances too, you’re in the right place. 

Here’s your guide to just some of the ways Fintech can transform your debts.

1.  Online Banking

One of the most significant changes that Fintech delivered to the financial world is the opportunity to check your bank balance and track your spending online. If you’re living from one paycheck to the next, then access to a banking app on your phone can ensure that you don’t spend any more than you intend to.

You can check exactly how much money you have at any moment, and even set up alerts that tell you when you’re about to go over your pre-set limits.

Online banking allows you to set up payments automatically, so you can ensure that you’re always addressing your credit card debts before you start your discretionary spending. You can set up your online banking apps to give you regular updates on your current budget and how much you’ve spent on bills.

You can even set custom notifications that let you know how you’re doing when it comes to paying off debts.

2.  Easier Budgeting

Speaking of apps that can help you to accomplish more when you’re struggling with debt, there are also smartphone tools out there that can help you with establishing a budget. Budgeting tools can give you the guidance you need to break discretionary and mandatory spending down into manageable chunks.

There are many budgeting apps like Undebt.it available that will help you identify your spending patterns and how to ensure you have enough money left at the end of the month, without tapping into your savings. You could even find a budgeting app that comes with AI integrations that tell you where you might be able to save extra or where you might have problem areas with your spending such as Trim.

3.  Create a Payoff Plan

While some apps help with budgeting, and therefore help you to see how much money you have left after you’ve made your repayments each month, others are designed to help you finish making your repayments more quickly. Tools like Unbury.me allow you to list out all of your debt on an app, then create a payment plan that’s suited to your needs.

With an app like this, you can use the avalanche method – which involves paying your highest interest rate debt first, or the snowball method, which starts with the lowest balance debts first. Whichever option you choose, you’ll pay off debt faster when you can keep track of your progress.

You can even set milestones with your Fintech apps that inform you when you’re getting closer to reaching your goals. This way, you can reward yourself when you accomplish significant steps and stay motivated when the going gets tough.

4.  Pay Debt Automatically

Speaking of apps that assist you in paying off your debt faster, there are also tools on the market that you can use to pay off your balances without realizing it. The Qoins app, for instance, rounds up the costs of each purchase to the nearest dollar, then applies the change to things like your credit card debt. With this strategy, you could end up saving an extra $50 or 60 dollars towards your debt, and you won’t even feel as though you’re missing out. The app also comes with tools so you can track your progress too. 

Sometimes, when you don’t have to think about things like paying off debts, you’ll be less likely to get stressed and overwhelmed with your money. Over time, you might even discover that the right automatic app has allowed you to reach your goals a lot faster. 

5.  Managing Future Debt

Fintech can also help you to avoid future issues with debt by giving you a better overview of your cash opens and credit rating. You can use online apps to check your credit score like Credit Karma, and even find apps that help you to compare and contrast borrowing options so that you can avoid choosing the wrong loan options for your needs. Searching for “Fintech” or “Finance” on your phone’s app store will help you to get started. 

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There are tools online that can give you a complete insight into the kind of repayment terms that are available for different loans, and how these repayment terms will affect you long term. You can also find apps that automatically apply discounts to your products, whether you’re buying insurance, or asking about a new loan, to keep your expenses as low as possible. 

The Clever Way to Banish Debts

Are you ready to start breaking down your credit card debts once and for all? The right technology could be just the tool that you need. Developments in Fintech all the way from apps that track your spending, to tools that help you to overcome the issues that make it harder for you to pay off your credit card debts are transforming the cash flow of people all around the world. 

If you’re keen to leave your debt issues behind and make the right next step in your path towards financial freedom, now could be the perfect time to start experimenting with the benefits of Fintech.

About The Author

Ryan Luke

Ryan Luke is a father of three, husband, financial coach, and full-time police lieutenant. His inspirational story about his struggle to make ends meet, to paying off his home in less than 10 years, has been featured on MarketWatch and other media outlets. To learn more about Ryan or to send him a message, visit his contact page here.

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