Paying Off Credit Card Debt? Make Sure to Use This Online Tool

pcmag.com:

The US economy has been confusing over the last few years, with unemployment rates, inflation, and interest rates bouncing all over the place. The latest news is that Americans' credit card balances collectively increased by $45 billion between the first and second quarters of 2023, according to the Federal Reserve Bank of New York, tipping past the $1 trillion mark for the first time. As I write this, Forbes Advisor's weekly credit card rate report puts the average interest rate at 24.72% (for the week of August 14, 2023). In other words, a whole lot of people are paying close to 25% on their share of the $1.03 trillion in US credit card debt.

If you carry credit card debt, it's tempting to pay the minimum each month and ignore the effects those high rates have on your personal finances. Who can face that reality while struggling just to make an on-time payment?

There is a better way, though, and I promise it's not nearly as confusing as understanding the US economy. The trick is to use a debt payoff calculator specifically from a free personal finance app. There are different kinds of calculators for different needs, and I'll explain some of the most useful ones—my favorites are from WalletHub and NerdWallet.

The reason you should use a calculator associated with a personal finance app is that these apps make money by showing you targeted ads for financial products. If you're in debt, there's a good chance that you could use a new and better financial product, such as a new credit card with a lower interest rate or a personal loan to pay off your debt. The best personal finance apps show you only accounts that you have a good chance of being approved for—some even give you a percentage to show how sure they are that