Rising credit card debt is a problem that affects many Americans. In fact, the average American household has over $5,500 in credit card debt. Credit card debt has reached pre-pandemic levels, increasing by 15% from last year. That can be a lot to manage, especially if you’re on a tight budget. But there’s hope! Introducing Debbie, a new behavior-based app that can help you get your finances under control. Here’s how it works.
How behavioral science helps your finances
Behavior-based apps are designed to help users become more aware of their habits and patterns. Headspace and Noom are popular apps to help you meet your health and wellness goals. Debbie is the first behavior-based finance app that incentivizes individuals to pay off their debt. It calls itself the “the Noom for financial health.”
Debbie uses cognitive behavioral therapy (CBT) and behavioral psychology to help you change your spending habits and get your credit card debt under control. The app works by tracking your spending patterns and learning what triggers you to overspend. After you link your bank accounts and credit cards to the app, Debbie helps you visualize your progress towards paying down your debt.
Cash rewards for meeting your goals
Once it has this information, Debbie provides you with personalized recommendations for changing your behavior. Every week Debbie sends you tasks and money challenges to help you build better money habits. Once you hit your goals, Debbie will reward you with cash incentives. Its goal is to give you real-time rewards to gradually shift your financial behavior. Debbie partners with financial institutions to provide the rewards.
