Paying Down Debt
Most consumers have debt. It’s just a fact of life.
Most consumers, unfortunately, have the wrong kind of debt. In this financial literacy course there is a module on good debt vs. bad debt. Bad debt should be paid off ASAP and before saving for retirement.
Paying off debt can be a daunting task. One way to meet the task head-on is to use a simple but powerful Pay Down Your Debt App. The app was specifically created for those taking the Financial Literacy Course.
How does it work?
It allows you to input your bad debt (credit card #1, credit card #2, student loan debt, etc), the interest rate on the debts, the minimum payments that are due, and (most importantly) some extra money you can allocate to pay them off quicker (you’ll know how much extra you can afford by using our Budgeting App).
The app shows you how much interest you’ll pay making the “minimum payments” and how much you will save by making “extra payments.”
Practically speaking, users will be able to goal set using the app by figuring out how much extra needs to be paid to pay off the bad debts in a certain time frame (like 12, 24, or 36 months, etc).
The following is a little visual of what the app looks like online (simple but powerful).