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Automatic savings app Digit will now let you passively pay off your credit card debt

By Polycount ยท 9 replies
Apr 25, 2018
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  1. Automatic savings apps are nothing new. Typically, these apps either round-up your purchases to the nearest dollar and put the difference into a savings account or they regularly deposit a predetermined amount of money into your virtual in-app savings wallet.

    Digit, however, is a bit different - it's an app that can analyze your spending habits to save small amounts of money at intervals that won't leave you feeling like you lost anything at all.

    Now, the app is taking things a step further. Starting today, Digit will let users automatically pay off their credit card debt using the new "Digit Pay" feature. To use the feature, you simply need to sign up for Digit, register one or more credit card accounts with the app and select the "credit card debt" savings goal in the app's settings.

    According to Digit CEO Ethan Bloch, implementing Digit Pay was a natural next step for his business. According to TechCrunch, the CEO says Digit's long-term goal lies in helping users solve their biggest financial "pain points" - credit card debt is merely the next step in achieving that goal.

    That said, it seems Digit won't be expanding their services beyond savings and credit card debt features anytime soon. "We'll be focused on those two... savings and credit card debt," Bloch said.

    If your credit card debt is piling up and you want to try Digit's new feature for yourself, the service offers a 100-day free trial period to get you hooked. After that, Digit will run you about $2.99/month. You can download the app now via the Google Play Store or the iOS App Store.

    Permalink to story.

  2. Cycloid Torus

    Cycloid Torus Stone age computing. Posts: 3,676   +1,032

    "How it works" does not tell how it works. So I give all my financial details and somehow magically, it saves me money and banks it.....sounds like a golden egg goose. Still do not understand how it works.

    Maybe I'm just being really thick and the next comment can explain.

    ps My solution has been - #1 do not spend what you don't have - #2 pay off credit card in full every month. I have violated both of those rules, but only on truly special occasions (unemployment, death in family, wedding, etc).
    Last edited: Apr 25, 2018
    senketsu, veLa and GreenNova343 like this.
  3. GreenNova343

    GreenNova343 TS Maniac Posts: 332   +218

    100% in agreement here on all of those points. I'll even add in unexpected car repairs to that list.
    senketsu and veLa like this.
  4. bananarama

    bananarama TS Rookie

    I tried this out a few years ago. Basically, what it did was analyze your monthly spending habits, and then it would take X amount of dollars on a daily basis and throw it into a savings account. Generally, it was a couple dollars at a time, but the more you have in there, the more it will take out. I only used it for about a month before it ****ed up. There was a delay in the system, and I only had $80 dollars in my checking account. It still thought I had $300+ in there, so it took out like $15. Which really hurts when you're a few days from payday. I cancelled my account right then and there.
  5. veLa

    veLa TS Evangelist Posts: 833   +273

    I figure anything like this must be a scam.
  6. Cycloid Torus

    Cycloid Torus Stone age computing. Posts: 3,676   +1,032

    Doubt it is a scam, but you are relying heavily on the vendor taking very strong measures to protect your information.

    The 'couple of dollars @ day' approach would work for many folks who have no 'savings' habit. Another solution is to put your entire paycheck into savings and then take back out only what you need for current bills.

    I was a teller in a bank next to a large factory. Payday lines went around the building. 3 of 4 deposited this way. Some accounts were well into 5 digits. Most of these folks were wartime refugees. It was awesome.
  7. Kibaruk

    Kibaruk TechSpot Paladin Posts: 3,641   +1,107

    Hi and welcome to economics 101. It works like any bank out there... you pay them a maintenance fee to keep your money safe, while they invest it and make more money out of your money and then giving you a 1% annual fee over your accomplished savings.

    It sounds like a great way for people to actually save money while not being particularly religious about savings.

    @Techspot: It would be great if you gave information like "only US based", I know you are probably US based but you surely know your base of users is not US exclusive.
  8. complexxL9

    complexxL9 TS Booster Posts: 63   +12

    I find it curious how pervasive credit cards are, I personally never had one, debit card is all I need and for saving features revolut recently introduced a great feature, to round up your transactions to the larger side and put the leftovers to your "saving vault".
    Should be great for credit card users that can't manage their finances ^^
  9. v1llag31d1ot

    v1llag31d1ot TS Rookie

    I have used Digit since January 2017 and I love it! The thing I love most about Digit is that you can set goals vs a bank account which is just one account for everything. My bank account I treat more as a emergency account and don't touch it. My digit account is the fun savings. I have a goal for myself, my husband, trips we are taking this year, presents and the default rainy day. We haven't had any problems with too much money being taken out and over drafting our account. You also get savings bonuses quarterly I believe it is and our bonuses pay for most of the monthly cost.
  10. Kibaruk

    Kibaruk TechSpot Paladin Posts: 3,641   +1,107

    I use my credit card for everything from a coffee to buying computers, I pay in full each month and I get enough points for "free" air tickets almost every year.

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