5 Clever Ways Fintech Firms Can Help You Become Debt-Free

Whether it’s high-interest credit cards, medical bills, or student loans, many people end up in precarious financial situations with more debt than they can handle. This causes them to scour the internet to find a solution. Luckily, plenty of fintech companies out there can help them navigate these tough financial waters, pay off debt, and get their finances back on track. Here are five ways fintech firms can help a person become debt-free.

1) Organise your bills

We live in an age where we have different bills coming from every which direction, whether it’s cable, utilities, subscription services, credit cards, or student loans; the list goes on forever. There are plenty of services and apps out there that allow you to manage your bills and keep track of your payments. If you can see all of your bills in one place, as opposed to having to rummage through endless paper statements or emails, it makes your life that much easier. Becoming debt-free starts with physically organising your expenses, and there are plenty of fintech services that can help you do just that.

2) Find the best interest rate

Comparison shopping isn’t only reserved for retail anymore. Now, consumers can go online and find financial products that align with their income and goals. When it comes to paying off debt, most people look to debt consolidation loans to lower their monthly payments and/or reduce their interest rates. This accelerates the payoff of their debt and more importantly gives them a concrete finish line as to when they can expect to be debt-free. Many fintechs possess technology that can match consumers with the appropriate lender within seconds and makes the loan application process as simple as possible. Users can compare lenders side by side and make an informed decision as to what their best option is. With the market for prospective borrowers being this competitive, the true winner is the consumer, who can now find the best deal(s) with ease.

3) Boost your credit score

Credit score and debt often go hand in hand. Those who have debt that they would like to pay off are usually concerned with their credit score as well. While most credit card providers offer a free service that lets you monitor your credit score, some other apps and companies dive deeper into your credit score, usually as a subscription-based service. Consumers can now see their entire credit history in real-time, find out what’s currently affecting their score, and find ways to improve it. While credit score isn’t an end all be all when it comes to your financial situation, it’s essential to be cognizant of it if you’re looking to get your finances back on track.

4) Education

Unfortunately, many people aren’t well versed when it comes to debt and financial education. Some of the essential principles, whether budgeting, investing, or paying off debt, aren’t taught in our schools. For this reason, many people turn to fintech firms who offer free financial education resources. Not only can people learn about basic personal finance concepts, but they can then apply them to their own personal lives. Fintech firms can teach us about credit scores, saving, budgeting, and investing. With regard to paying off debt, consumers can also learn about the different debt consolidation options, the pros and cons of each, and when each one makes sense. There is no one-size-fits-all answer to any personal finance question because each person’s situation is unique. Luckily, with the amount of free content available online from fintechs, you will be able to find the answer you are seeking.

5) Budget, save, invest

Learning how to budget and save doesn’t only help you pay off your debt faster, but it is a life skill that will help you build wealth for yourself and your family. Once your debt is paid off, most people will look to invest the extra money they now have. The fintech industry is currently booming with companies and services that can help novices invest their money. Depending on your risk aversion level, you will want to pick the right service and investments that fit your unique profile. Many platforms can help you reach your investment goals, and most have minimal or no fees. 

Getting out of debt can seem like a daunting task. Still, with the technological advances that have taken place throughout the fintech industry, consumers now have many resources at their disposal to simplify the process. Fintech companies help educate consumers on financial best practices, allow them to compare different products, and make it easier for them to invest their money once they are debt-free. 

***

About the author: James Lambridis is the Founder and CEO at DebtMD