Become debt-free on your own terms

Nobody's perfect and many people have a debt to pay off. The question is: “Do you have a plan?” Get out of debt with the suited repayment plan that is integrated into your budget.

or scan QR to install

Build your own plan for a debt-free future

PocketGuard helps thousands of people pay their debts every day. We believe in keeping things simple, so we create a debt repayment plan that fits right into your budget.

Sign up for PocketGuard

To learn more about how the debt repayment plan works, you can use our online calculator. To create a customized plan and integrate it into your budget, sign up for PocketGuard.

Add your accounts and details

The more accounts you add, the better debt repayment plan and budget capabilities you get. From credit cards and loans to mortgage and car insurance. Enter details such as APR, minimum payment, and more.

Setup payoff budget and choose a strategy

Allocate enough money towards paying off debts, among other necessities such as bills and savings. Choose a financial strategy based on tips and recommendations from financial experts and PocketGuard. Then, consolidate your payoff budget based on your needs.


All you need to have now is discipline. Don't worry as PocketGuard will notify you if you ever step off the road so you can correct your budget.

Set up your debt payoff plan

Paying debts can be exciting if you have a straight, well-organized plan. Connect all your credit and loan accounts, and we'll show you the way to a debt-free future. After that, add the accounts you’d like to pay off. Don’t forget to include promotional rate or forbearance into calculations to make your plan more accurate.

Choose your financial strategy

The feature is based on patterns known as “avalanche” and “snowball” that we have discussed above. Our smart algorithm calculates the most profitable debt repayment strategy, so you'll save hundreds or even thousands by paying less in interest!

Get your repayment schedule

See how many payment cycles are left until the debt-free date. You can always change the amount of money towards paying debts if you feel like paying more or less and apply changes to the current plan.

Analyze debt burndown chart

Keep track of your debt repayment progress with ease. You can always see how much you’ve paid and how much is left to pay. If you ever need to make changes to your budget, we’ve got you covered. Use the PocketGuard debt burndown chart to stay on track and reach your debt-free goal.

PocketGuard does calculations for you

Play with the repayment budget amount to see how your strategy changes. Apply a new budget to your strategy to become debt-free faster.

Become debt-free with these tips

Take control of your finances today by learning about the different types of debt, interest rates, and repayment options! By gaining a better understanding of these factors, you can create a personalized plan for paying off your debt in a manageable and efficient way.

1. Few words about debts

Debt stands for the amount of money that one should repay back. Simply said, that is something borrowed by one party from another. Debts are needed by many to have an opportunity to buy more goods they couldn’t afford under normal circumstances. It all sounds great unless you know how much you borrow and return all funds on time to avoid problems.

In any case, debts have a ripple effect on your entire financial life. You should keep an eye on them if you want your credit scores to be positive. Without a good financial reputation, you won’t be able to use many services.

A certain credit limit is set to prevent consumers from overspending. However, some people still manage to purchase too much. It’s necessary to keep in mind that both credit restrictions and interest rates may change. 

Installment debts come from several types of debts. They include various loans and mortgages. Usually, such things as the interest rate and how much you pay per month are fixed from the very beginning, but they can be modified under certain conditions, so you should always specify those details.

Paying your debts on time is of utmost importance. In case a borrower ignores or skips the payment due date, the one who lends money can report such misbehavior to the credit bureaus. This single mistake can cost a borrower their reputation. It remains on their credit reports for up to 7 years. Sure, some fees can be paid later without such consequences, but it’s still tiring and burdensome.

Aside from your payment history, it may vary how each type of debt affects your credit story. Installment debts do not affect the credit score a lot, but it is still unpleasant. However, revolving debt is different and more risky. So, what may impact your credit scores negatively? It happens in case a borrower has higher balances compared to their credit restrictions from month to month. That is especially true for multiple cards.

2. Assess the amount of debt you owe

It’s essential to understand the total amount of debt you owe. Having a clear understanding of the numbers will empower you to make a repayment plan that actually works.

Many people may be unsure what the total is across all accounts, so the first thing to start is to visualize what you owe across different accounts.

Link all your credit cards to get the entire picture of your debt landscape.

3. Learn your debt details

After you’ve determined the total amount you owe, it’s time to dig a bit deeper and read the fine print. Are you aware of:

  • the due date for each debt payment?
  • minimum monthly payment?
  • interest rate?

It’s important to know the debt details because they will ultimately help you determine the best repayment plan.

You should define the smallest amount of money that you have to pay back monthly to avoid issues and keep your score and reputation safe. It is not a problem to estimate that amount. Most banks determine the minimum payment by calculating 1 percent of the total balance owed.

4. Come up with a debt payoff plan

Once you understand the big picture, it’s time to create a debt repayment plan. There are two main approaches to covering what you owe.

Debt snowball. Pay off the smallest debt first while maintaining the lowest amounts to pay on all other debts. As each debt is paid off, the cash used for the previous debt is “snowballed.” It’s like a snowball principle. The sum from the previous payment which is left is used to cover the upcoming tiny debt and so forth until you’re done with the entire amount you borrowed. Choose this strategy if you need additional motivation by seeing all debts are paid. However, this will not save as much money as the next approach we’re going to look at.

Debt avalanche. Determine which debt has the highest interest rate. If you can do that, pay this one in the first turn. Pay minimum monthly payments on the rest of your debts. After that, consumers focus on the debt with the second-highest interest rate. The cycle continues until the borrower gets rid of all debts successfully.

5. Celebrate small wins

It’s important to celebrate your debt repayment victories to keep your motivation high. Let's say you paid off the first $1000. Great! Treat yourself!

Set milestones within your larger debt repayment plan. Once you achieve one, make something for yourself. What about ice cream? :)

Plan a budget for such things to stay on track, especially if you follow a zero-based budgeting strategy.

6. Stop Creating Debt

You’ll never get out of debt if you’re continually borrowing money using credit cards. No one tells you to close the accounts because that will damage your credit score and reputation.

Stop getting loans, so you don't have the ability to create additional debt. New debt increases the payments you have to make, which creates additional strain on your monthly income. It’s tough to live without credit cards, but if you’re serious about getting out of debt, find a way to live without exceeding your income.

7. Ask Your Creditors for a Lower Interest Rate

Borrowers should do whatever possible to reduce an interest rate. If this indicator is high, it is more difficult to cover what you owe. Why is it a good idea to lower an interest? Well, it leads to the minimized  monthly interest. Also, this practice that banks can help with makes it possible to pay off your debt faster.

So, having a good credit score is one target which our tool helps to hit. It is the key to leveraging more toward getting a lower interest rate. Taking advantage of a 0% balance transfer offer is even better.

8. Refinance credit cards with personal loans

Personal loans are beneficial for anyone who finds themselves on the wrong end. It means having too many debts or being unable to pay them. If your credit score is at least above average (650 or higher), you may be able to get a personal loan of up to $35,000 at a lower APR than your credit cards. Start covering your debts way quicker to live a normal life!

Frequently asked questions

How PocketGuard can help to pay off debt fast?

With the help of our debt payoff plan feature, you can pay off your debts as quickly as possible. Сhoose a "snowball" strategy if you want to see fast progress or an "avalanche" strategy if you want to pay less in the end. Then, stick to your payoff schedule and become debt-free.

How do you calculate a debt payoff plan?

A debt payoff plan is calculated based on the details of your debts, such as total debt amount, APR, minimum payments, etc. Our algorithm analyzes all this data and builds a personalized repayment plan for your needs.

How to create a debt payoff spreadsheet in the PocketGuard app?

You can find your personal payoff schedule on the dashboard of the payoff plan. The schedule contains all the necessary data related to your payoff plan, such as payment and interest amount, principal, and balance. Although we do not have the option to convert the schedule to a spreadsheet, you can do this manually by copying the schedule data.

What payoff strategy should I use to become debt-free?

In PocketGuard, you can choose one of two payoff strategies: snowball or avalanche. The snowball method is preferred for those who want to see payoff progress as soon as possible, while the avalanche method allows you to avoid paying extra APR fees.

Can't setup a debt payoff plan. My payoff budget is low.

First of all, you should make sure that you have not created recurring bills for debts added to the debt payoff plan. Then, you need to go to the Plan tab and cut your expenses to free up enough funds for the payoff budget.

How does PocketGuard mark a particular debt payment as paid?

The app marks debts as paid when the sum of transactions by a particular account is greater than or equal to the suggested payment amount.

Sign up for PocketGuard today

Become debt-free on your own terms with a personalized plan, repayment schedule, and burndown chart consolidated in your monthly budget.