Every problem in the society comes with a solution that acts as a business opportunity. There has been an increase in consumer debt across the globe. Currently, Canada tops the list of households with the highest debt-to-income ratio (DTI). Sweden is the leading country in Europe with the highest debt-to-income ratio. Experts claim that higher DTI ratio makes borrowers less likely to repay their loans in the future.
The effects of personal debt extend beyond the financial scope. People with debt problems usually experience health issues. Moreover, most marriages are ruined because of financial limitations. The effects of debts are more severe than what we see on our monthly statements. The good news is that developers have come up with debt reduction software.
Mint is among the most popular personal finance management software applications. Many users use the software to plan their way out of debt. Its customer base has grown to 1.5 million in the last two years. Intuit purchased Mint for $170 million. Debt management applications help the users in budgeting. Most of the software provide “what if” scenarios to the users. Therefore, the users can check different payment strategies and their possible outcomes.
Debt management applications also assist in budget creation. Most people who get out of debt do so with the help of a budget. The developers create the software with a budget creation feature to assist the users to manage their debts. Some applications also provide credit score of the user and generate reports.