Pay Off Credit Card Debt With the Savings App Digit
Savings app Digit is expanding its offerings by adding a new feature that helps users make progress on paying off credit card debt.
One of the best ways to save money and pay bills on time is to automate it, which is the raison d’être of the app. According to a company press release, “By working in the background to get rid of this, Digit makes breaking the debt barrier less difficult and more manageable.” Here’s how a new Digit feature called Digit Pay works:
- Create a credit card debt goal in the app and activate Digit Pay. The app then deposits money from your checking account (as usual for your savings goals).
- He will then pay your credit card bill with the money saved.
The company says payments will be dispatched within two to three business days. If you want the application to save more, you can use the ” Boost ” command.
Alternatively, you can use an app like IFTTT (If This Then That) to automate credit card payments, or customize it in your bank’s app. It’s all free, while Digit’s main drawback when it comes to saving money is its $ 2.99 monthly fee after a 100-day introductory period.
But the advantage of using the app is that it saves money for you and then uses that money to help you move towards your goal of getting out of debt – no action is required. As Christine Wong, author of Two Cents previously wrote , “Digit is unique in that it analyzes your actual expenses and bills to determine how much you can save yourself.” With apps like IFTTT and Qapital , you set your own savings goals and rates.
What to watch out for
With any automatic bill payment, you need to make sure that you have enough money on your check to cover the transaction. Digit Pay is a little different because you only save the money you have and then use it to pay off your balance. So this is definitely not a panacea. If you have debt, you should put together a repayment plan and make sure it doesn’t drain more than you can afford.
And you’ll also want to make sure that payment automation doesn’t make you forget to check your accounts. Set up payment alerts so you know they’re working and set reminders to check your balances at regular intervals.
You can read more about Digit here .