If You Need to Get Out of Debt, Try These Budgeting Apps

These apps can help you save thousands of dollars.

Credit card debt in the U.S. hit $841 billion in 2022. The average American household owes close to $6,500. U.S. credit card debt as a whole reached an all-time high in 2019, peaking at $930 billion. While average credit card debt per household dropped by about 15% during the pandemic, credit card debt has soared back, rising about 25% from 2021 to 2022. Here are three user-friendly financial tools that can help you track your spending, save more money, and pay back your credit card debt.

Tally: Helps you get out of debt up to 2x faster

Tally states on its website that its debt payoff app can save you up to $4,185 in five years. Tally helps simplify the process of paying off your credit card debt by consolidating all of your monthly credit card bills into one payment. After downloading the app, you add your credit cards. Tally then conducts a soft credit check, which won't impact your score, to see if you're eligible for Tally's low-interest line of credit. A 580 FICO score is typically needed. Once you are approved and accept the offer, Tally immediately pays off your cards with your Tally line of credit, and you pay Tally back in one monthly bill. 

Tally's APR ranges between 7.90%-29.99% and the annual fees range from $0-$300. The fee is paid directly from your credit line. Tally has three different membership levels. Everyone on the platform gets access to Tally's debt payoff and planning features with its Tally membership. If you qualify for and accept your Tally credit line, then you have a Tally Basic membership. Tally's highest membership level is Tally+, which according to Tally, includes steeper discounts and access to a larger credit line. 

Tally states that 50% of Tally+ members have gotten out of debt in three years, or 41% faster. Tally may be a good option for you if your credit card APRs are higher than Tally's APR and fees. You should also consider if you can make your monthly Tally payments. Tally's fee-free membership offers access to its debt payoff and planning features, including setting up automatic payments and payment reminders to help you pay down your debt faster.

Truebill: Cancels unwanted subscriptions and negotiates bills

Truebill is a mobile app that can help you stay on top of your spending and help you pay down your debt. One of its top features is helping users identify and cancel unwanted subscriptions. Truebill has canceled over one million subscriptions on behalf of its members. 

It can be easy to sign up for paid subscriptions and forget about them, putting an unwanted dent in your checking account each month. Signing up for a service like Truebill could help you organize and cut back on your subscriptions without picking up the phone. Truebill learns your habits and saves the right amount at the right time while helping you avoid overdraft fees. The extra money you save can be used to pay your debt down.

Truebill also can help users lower their bills. This premium service gives Truebill's negotiators permission to get the best rates for its users. Plus, its concierge service helps get refunds on overdraft and late fees, save on cell phone or cable bills, and find better rates for auto insurance. Truebill's goal is to handle the people aspect, so you don't have to.

Mint: Helps you stay focused on financial goals

Mint states on its website that it is the number one most downloaded personal finance app. It's designed to track spending and create a financial plan -- and it even monitors users' credit scores. Mint also automatically calculates personalized spending insights for users, providing recommendations on where they can save more money. MintSights™ automatically helps find savings you missed, so you can pay down your debt faster.

Users can connect their financial accounts and calculate their net worth in real-time. With Mint, you can also create alerts for payment due dates and set status updates on your monthly budget. Mint also provides financial coaches to help users know where they can improve and what they should do next.  

As the Fed continues to raise rates, credit card interest rates are expected to also increase.  

These three debt payoff tools are just a few ways to help you pay down your debt faster and save more money in the long run.