Using Your Phone To Help Pay Off Debt

Average family owes $15,000. in credit card bills, see how an expert helped one family trying to become debt free.
2:03 | 10/23/14

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Transcript for Using Your Phone To Help Pay Off Debt
Next tonight, the real money team is back and this number. The avrm American household owes $15,000 in credit card bills. Tonight, how much one expert saved with a phone app. Here's ABC's gio Benitez. Reporter: Thomas and Megan Snead are determined to deal with their debt for the sake of their 1-year-old daughter, Nora. He's a web developer, she's a nurse. We're like a lot of people. We both graduated with college debt. We put our honeymoon on a credit card. We had a baby a year later. We were 30 grand in debt, just like that. Reporter: To cut the biggest bill, housing, they moved back in with Megan's parents. But for that extra edge, we called in will parker, who climbed out of his own $20,000 debt in just nine months. You're not in finance. You are just a regular guy that got himself out of debt. Anybody can do it. Reporter: His first step. Reach for your phone instead of your wallet and track what you're spending. You have to know where the money is going. Reporter: Using apps like simple, wallet up or mint. Keeps it in front of my face. Reporter: Tip two, eliminate late fees and high interest rates. If you are late on a payment, just once, some banks hike their interest rates from the average 15% to 30%. Making just the minimum payments -- it would cost you an extra $18,000 in interest to pay off a $5,000 debt. Tip three, careful about where you get that cash. Atm fees have gone up. It can now cost $4 for out of network transactions. So, use locators on your phone to find the nearest no fee atms. Parker says it's all about setting a budget and sticking to it. Your financial freedom, in the palm of your hand. So, when do you expect to be debt free? We're hoping by Christmas. Reporter: By Christmas. Thank you. Reporter: By Christmas. And David, I graduated from college owing about $14,000 on those credit cards. I used budgeting websites to track those expenses, guess what? I said it off. And now you are here. Thanks, gio. And when we come back here,

This transcript has been automatically generated and may not be 100% accurate.

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