America is experiencing a debt epidemic, with the average American now having a personal debt of up to $38,000. As America’s individual debt is soaring, more people are turning to the growing number of mobile apps now available that are designed to help them reduce their spending, save them time and take the stress out of money management. But can these finance apps really make us better at managing our money?
Global Financial App Downloads Hit 3.4 billion
Downloads of money management apps reached 3.4 billion worldwide last year. Research has found that 92% of people in the US aged between 18 and 37 use finance apps to keep track of their spending and pay bills. These apps help people to be much more aware of their spending habits and see just how much they are spending and what on. In fact, those who start using money apps spend on average 7% less in the following months. Although some could argue that just cutting up your credit cards would have the same impact.
Popular Budgeting Apps
There are an array of budgeting apps available to download to help get your personal finances under control and ensure you are managing your money the most effective way possible. One of the most popular apps is Mint, which provides a budgeting tool that categorizes transactions, sends you alerts and gives you a good picture of where your money is going. Meanwhile, PocketGuard helps you avoid overspending, and Goodbudget is designed for couples who want to budget together.
Repairing Your Credit
If you have been in debt, been refused a loan application or been paying high-interest rates, your credit score will likely have suffered as a result. But many people don’t even know what their credit score is or understand what it measures. Credit experts recommended using a credit repair company to help you improve your credit rating and FICO scores.
These companies will liaise with your creditors to challenge negative reports that impact on your credit score. They also keep your credit history up-to-date and an accurate reflection of your finances. Of course, there are now also credit repair apps available too. These apps are designed to help you keep an eye on your credit score, providing you with weekly updates and sending you alerts if your credit score drops.
Money Apps Make Money Management Easier
Finance apps are designed to make managing money much easier and simpler and to enable people to have better control over their finances. By using an app, you can automate tasks such as setting up regular payments to pay your credit card to avoid late fees. For the bills you cannot automate, you can set reminders to ensure you are never late. You can also use reminders to check your balance regularly, enabling you to act swiftly if anything appears amiss. Budget tools and apps are great for keeping your spending on track by looking at your income and track your transactions to help you create an accurate and realistic budget.
While managing your finances can often feel like an overwhelming task, money apps and finance tech can make managing your finances and improving your credit score far simpler. While there are a number of apps now available, just choose one to get started with that will help you tackle your most important financial challenge.