5 clever ways fintech companies can help you get out of debt
Whether it’s high-yield credit cards, medical bills, or student loans, many people end up in dire financial situations with more debt than they can handle. This causes them to search the internet to find a solution. Luckily, many fintech companies out there can help them navigate these difficult financial waters, pay off debt and get their finances back on track. Here are five ways fintech companies can help a person get out of debt.
1) Organize your bills
We live in an age where we have different bills from all directions, whether it’s cable, utilities, subscription services, credit cards, or student loans; the list goes on forever. There are many services and apps that you can use to manage your bills and track your payments. Being able to see all your bills in one place instead of having to sift through endless paper statements or emails makes your life that much easier. Getting debt free starts with physically organizing your expenses, and there are many fintech services that can help you with that.
2) Find the best interest rate
Price comparisons are no longer reserved for retailers. Now consumers can go online and find financial products that fit their income and goals. When it comes to paying off debt, most people look for debt consolidation loans to lower their monthly payments and/or lower their interest rates. This accelerates the payoff of their debt and, more importantly, gives them a concrete target line for when they expect to be debt free. Many fintechs have technologies that match consumers with the right lender in seconds and make the loan application process as easy as possible. Users can compare lenders side by side and make an informed decision on what their best option is. Whereby the market for potential borrowers is like that competitive, is the true winner of consumers who can now easily find the best deal(s).
3) Boost your credit score
Creditworthiness and debt often go hand in hand. If you have debts that you want to pay off, you usually also think about your creditworthiness. While most credit card issuers offer a free service to help you monitor your credit score, some other apps and companies dig 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 impacting their score and find ways to improve it. While credit isn’t everything when it comes to your financial situation, it’s important to be aware of if you’re looking to get your finances back on track.
Unfortunately, many people are not very knowledgeable when it comes to debt and financial education. Some of the essential principles, whether budgeting, investing or paying off debt, are not taught in our schools. For this reason, many people turn to fintech companies that offer free financial educational resources. Not only can people learn basic personal finance concepts, but they can also apply them to their own personal lives. Fintech companies can teach us about creditworthiness, saving, budgeting and investing. With a view to paying off debt, consumers can also learn about the different debt consolidation options, the pros and cons of each, and when to use them. There is no one size fits all answer to every personal finance question as 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 looking for.
5) Budget, save, invest
Learning how to budget and save will not only help you pay off your debt faster, but it’s a life skill that will help you build wealth for yourself and your family. Once your debt is paid off, most people will try to invest the extra money they have now. The fintech industry is currently booming with companies and services that can help beginners invest their money. Depending on your risk aversion, you should choose the right service and investments that fit your unique profile. Many platforms can help you achieve your investment goals and most have minimal or no fees.
Getting out of debt can seem like a daunting task. However, with the technological advancements that have taken place across the fintech industry, consumers now have many resources at their disposal to simplify the process. Fintech companies help educate consumers about financial best practices, let them compare different products, and make it easier for them to invest their money once they’re debt-free.
About the author: James Lambridis is the founder and CEO of DebtMD