Updated Nov, 25th 2012
**Have just come across www.readyforzero.com which seems to be what I was thinking about. Bummer. I'll see if I can think of a way to do it better otherwise I might have to start again.
(Initially) Simple tool for assessing a current debt (Credit card, Personal Loan, Home Loan/Mortgage etc.) of a user and assisting them with identifying the benefits of paying additional amounts sooner. Once a goal is identified, behavioural based alerts will be sent to the user to encourage them to maintain their agreed additional amounts and continually update them on the benefits of what they are doing (ie. the 'true' value of that payment).
It will work as follows:
Step 1 - User registration and basic details
Step 1's goal is to be able to accurately model a users debt situation in order to be able to make the most appropriate recommendations for additional repayments.
Step 2 - Basic financial position
Step 2 looks simple but this will be where you can work out what expenses are mandatory and which ones are discretionary. The reason for this becomes most apparent in Step 3
Step 3 - Recommendation + repayment plan
The accelerated loan repayment period is where a user really sees the value of paying an additional amount as it will factor in interest saved and the shorter loan term to give a "true" value of what the additional repayment amount is worth. People often have trouble factoring in all of the benefits and this is the goal of this process.
Step 4 - Follow up plan
Step 4 is ongoing and is designed to be as intusive/non-intrusive as a user chooses. They can choose to get daily/weekly/fortnightly/monthly reminders of their accelerated repayment plan. This can also be aligned with the date that the minimum repayment falls due to prompt them at the most appropriate time to pay more.
Follow ups can be delivered via email or text message.
This is the MVP as I see it for now. Future enhancements could include:
Thats about it from me for now. Any thoughts/questions appreciated. Let me know if you want to work on this.