App helping to pay off debt September 15, 2011Posted by reto wettach in gamification, learning, making the invisible visible, service design.
There are various approaches of how to pay back loans. One is called the ‘Snowball Method‘: “one who owes on more than one account pays off the accounts starting with the smallest balances first while paying the minimum on larger debts. Once the smallest debt is paid off, one proceeds to the next slightly larger small debt above that, so on and so forth, gradually proceeding to the larger ones later” (Wiki).
The idea behind this method is that it is that it is psychologically rewarding to see results, “because of the psychological boost people get when they pay off a loan—it encourages them to keep working at clearing the other debts” (M.Frauenfelder)
There is an app for that – called “Debt Free”. Here a screenshot:
I am posting this not only as service design in banking is a upcoming area, but also because this app fits into the discussion we currently are having related to Gamification:Some of the aspects off the ‘Snowball Method’ can for sure be transferred into other domains, as e.g. learning.