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4 reasons why Debt Wise is not the answer

January 19, 2011

As a quick follow-up on my DebtGoal review, I wanted to talk about Debt Wise, which is pretty much the same type of online program. Just like with DebtGoal, you enter your debts into Debt Wise and it magically spits out a  monthly debt payment plan for you. And, just like DebtGoal, Debt Wise is $14.95 a month.

 And now I’m going to give you 4 reasons why Debt Wise is not the answer - especially when you are trying to get out of debt and every penny counts.

Reason #1 – Even financial author David Bach, who endorses the Debt Wise product, recognizes that there are “similar free tools available from other companies” that do what Debt Wise does for you, but “only Debt Wise automatically pulls your debt data from your credit file.” (Source)

So, let me get that straight. You pay $14.95 each month – not just one time – for Debt Wise to automatically access your debt accounts? Yes, that is correct.

I’m lazy, but I’m not that lazy! If I work that cost out – – -

Let’s assume one hour to fill out the free debt spreadsheet for the first time. OK, two hours if you are really slow. Or have a ton of debt accounts. (In this case, I hope you’re slow.)

This time includes accessing all of your debt accounts manually and putting all that info into the debt spreadsheet.

After you spend those one or two hours tops, you have a payment plan to follow every single month. (Remember, the debt spreadsheet tells you what to pay, how much to pay, and what month to pay it in until you are debt free.)

That’s it – 1 or 2 hours of your time compared to paying $14.95 a month for the very same thing?

Gee, which do you think is frugally-wise? 

Reason #2 – In this clip, Bach explains that in “seconds all of your debt is pulled up on a screen” and “you can see how much debt you have.”

Well, that’s great. But how does it know about the personal loans that you may have – you know when you borrowed from dad or from your 401(k) – yikes.

That’s right – Debt Wise wouldn’t know about those and so doesn’t include them. You’d have to manually enter them debts into Debt Wise anyway. 

Reason #3 - In that same clip above, Bach again endorses Debt Wise (as in, he gets paid big money) by saying the program gives you a “Debt Freedom Day.”

Yeah, the free debt spreadsheet does that too right there on the Payment Schedule tab. No joke.  

Reason #4 - Debt Wise makes it even easier to increase your debt!

If you are not serious about becoming debt free, and if you will continue to use your credit cards and rack up more debt, Debt Wise is the way to go because it automatically updates your debt balances and readjusts your debt payment plan every month! It makes increasing your debt that much easier.

Once you spend those 1 to 2 hours filling it out the first time, your debt spreadsheet should never change because you’re not increasing your debt!

I hope I have convinced you to instead
save your money and use the debt spreadsheet!

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