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How Qoins Will Help You Destroy Debt Faster

So just being honest, debt effing sucks. It's why I started blogging in the first place. Being part of the wonderful personal finance blogging community means I get to hear about new finance apps and tools pretty quickly. Which is how I came to hear about Qoins an app that helps you pay off debt faster.

Qoins: An App for My Favorite Debt Hack

It's no secret that one of my favorite debt hacks is to make multiple payments throughout the month. Splitting my payments means I pay less interest even if I just make the minimum monthly payment. If I make an extra payment beyond the monthly minimum amount required, my debt is toast.

While Qoins can certainly help you towards your minimum monthly payment (though you might want to use Qapital's goals for that), it will make an extra payment for you. That extra payment even if it is a small one will help pay down your debt much quicker.

How Qoins Works

Qoins works by connecting your bank account and then you decide how you want it to gather money for your extra debt payment. You can have it round up your purchases to the nearest dollar and set the "spare change" aside or have it set aside $0.50 - $1.50 per day for you.

All those small amounts add up. Then once a month Qoins makes an extra payment on your behalf to whatever account you decided to have the payment made to, it could be a credit card, car loan, or even student loans.

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Does Qoins Cost Money?

Sort of, it costs $1.99 per month, but that amount is taken out of the money Qoins sets aside for you so you never see a charge for it on your bank account. Also since it doesn't make an extra payment unless it has set aside at least $10 to make a payment, if you have less than $10 set aside through, then you won't be charged the $1.99 that month.

Pros:

  • Automates making an extra debt payment
  • Flexibility in what debt you want to pay off
  • Flexibility in how it set's aside money for you

Cons:

  • It does cost money, $1.99 per month
  • If you don't set it up to save enough then it may not actually make an extra payment for you each month

Is Qoins Worth $1.99/mo?

Depends. I know gray area answers are the worst but it's true. If using it is only going to result in setting aside an extra $10 per month to put towards your debt then, the $1.99 would be eating up about 20% of that payment. If Qoins is really going to help you put a good chunk of money as part of an extra payment each month, then I think the $1.99 to automate extra debt payments is worth it.

How Much of a Difference Could Qoins Make?

Let's say you want to use Qoins to pay extra towards a credit card. You have a balance of $5,000 at 18% interest. Your monthly minimum payment is $150. Without making any extra payments with Qoins or using the card to make any more purchases, you will have it paid off in four years and pay $1,983 in interest.

Let's say Qoins helps find an extra $40 to put towards your debt each month, $38.01 after the fee. You would have the credit card debt paid off in three years, a whole year sooner. You would also only pay $1,428 in interest, saving $555 in interest.

Verdict

While it may not be for everyone if you have debt and have trouble managing your bank account, then it can be a great way to help you pay down debt faster. Learn more about Qoins.

If you are all over your debt repayment, then a tool like Qoins may not be necessary for you. You probably have your spending reigned in and a tool like this probably won't find a lot of money to set aside because all of your money already has been assigned a job.

Best Debt Pay Off Tool

One way I'm making extra debt payments is with Qoins. When you sign up for Qoins, you connect your bank account and then spend as you normally would. Qoins will round up your purchases to the nearest dollar and put that change towards an extra debt payment.

Basically, Qoins will help you pay down debt faster by applying an extra payment for you by using your spare change. There is a $1.99 charge each month. However, they take it out of the spare change they set aside for you so you never see a charge in your bank account. If there isn’t at least $10 in your Qoins account they will roll that amount into the next month free of charge.

Qoins works by connecting your bank account and then you decide how you want it to gather money for your extra debt payment.

Liz

Liz is a blogger helping people with personal finance and working for themselves. She shares her own journey to debt freedom and helps graduates dealing with above average student loan debt on her site, Less Debt More Wine. She currently resides in NC after calling Massachusetts home for nearly a decade.

  • I’ll pass on Qoins. I like the concept, but I’d rather have control of my debt and throw extra money on my own terms. In 2017, I’m paying down the PMI of my mortgage so I can reduce my mortgage payment by $144. I’m looking to pay down over $20k this year, Qoins wouldn’t really help for that aspect.

    Thanks for sharing – while it might not be for me, I’m confident other people would love to use this app!

    • Liz says:

      Definitely, Qoins isn’t for everyone, but those struggling to actually make that extra payment on credit card debt or even some student loans I think can really benefit from using it. Because there is a difference between saying you’re going to make an extra payment and actually doing it, I know in the past I’ve had trouble following through. Good luck with paying down that 20k!

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