Debt Wise: Another Tool To Help You Pay Off Debts

debt wise logo

I recently heard about a program sponsored by Equifax and pushed by David Bach called Debt Wise. Essentially it is uses your credit report to give you a plan to do a debt snowball.

A couple of years ago a similar program called Debtgoal launched  and provided the same type of service.

How does Debt Wise work?

http://youtu.be/8DWMxTVCHGQ

My thoughts

Personally, I wouldn’t be one to pay for a service like this. I would rather save the $15 each month and just add another section to a budget spreadsheet to do the same thing. On the other hand there are some things that I would gladly pay for the convenience and perhaps this is worth it for some folks out there.

What do you think? Would you pay for something like Debt Wise?














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8 Comments
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  1. Interesting program. I know I wouldn’t pay $15 a month to tell me what to pay off first. Sometimes I think these “conveniences” rob us of a sense of empowerment and the idea that we can do it ourselves. I don’t think paying down debt should necessarily be a matter of convenience since it’s often convenience oriented behaviors that get us there in the first place (not always, but often).

  2. I’m never in a big hurry to discourage anyone from doing whatever it takes to get them out of debt. If they need to spend a monthly fee to feel accountable for their goals, it’s not the worst way to spend their money.

    But there are free programs that do the same thing. Power Pay was developed by the University of Utah Cooperative Extension and it’s free. It’s not quite as pretty and it doesn’t have a lot of bells and whistles but it gets the job done. And it’s very satisfying to see how much you can save in interest by making extra payments on your debt.

    If links are ok, you can find power pay here: https://powerpay.org/.

  3. I have to agree with you. I wouldn’t pay $15 per month just for a budget outline. If they could lower interest rates and save me money it might be a different story.

  4. Jeremy

    The only “tool” to pay off debt is money. That, or a lawyer to file bankruptcy for you.

    Everything else is gimmick to make people feel like they’re “doing something” instead of the three things that matter–make more, spend less, and write a check to your creditors!

  5. I’m with the herd on this one– I wouldn’t pay $15 for a plan like this. It’s amazing how much money you can spend to “help you get out of debt”– kind of an oxymoron in my opinion.

  6. I’m the founder of DebtGoal.com and I can definitely appreciate the views expressed here. I don’t think DebtGoal (or DebtWise) is for everyone. There are some people who can get out of debt on their own.

    However, what we’ve found over the years is that for many people, the biggest challenge isn’t cash flow, it’s organization and planning. They have multiple checking and credit card accounts that they use for spending and it’s hard to know what’s happening to their finances. They have a hard time knowing how to set up a plan to get out of debt. If they slip and charge on credit cards, they don’t know what they should do to stay on track. And most of all, they have a hard time keeping up the momentum on their payments (to really follow a debt stacking or snowball approach you should pay a constant amount each month even though your minimum payments are declining).

    DebtGoal helps on all these dimensions. In short, we help people get started and stay moving. We think it’s a lot like dieting. Yes, you can lose weight on your own and lots of people do. But many people benefit from planned approaches like Weight Watchers and the evidence supports the fact that weight watchers helps people lose more weight than they do on their own. Does this mean it’s worth the price? Lots of people think so.

    Our results are similar. People following the DebtGoal program pay off $6200 of debt per year, roughly 5 times more than people trying on their own. Does this make it worth the monthly fee? We think so.

    If you can do it on your own, fantastic. But if you don’t seem to make progress (and roughly 45% of America fits this description) we think DebtGoal can help and for those people getting out of debt with our program, the $12/month is a bargain.

    BTW, we’re way better than DebtWise! Good luck to everyone.

  7. Being that I’m a penny pincher, I wouldn’t pay for DebtWise but it does seem like a great program to help others get out of debt.

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