Steal a percentage of every purchase you make and apply it to your student loan debt with this app.
How does the Pickpocket app work?
The goal of Pickpocket is to help you pay off your student loans faster without having to think about it. To start, you link both your bank accounts and student loan account to the app. Then when you make a purchase, Pickpocket takes a percentage — 10% is the default — and puts it aside. Once a month, after you’ve built up at least $50 in savings, Pickpocket automatically applies it directly toward your loan principal as an extra payment. Since you don’t have to do any extra work, you’re on your way to becoming debt free faster without having to change your normal spending behavior.
Pickpocket is still in beta, which means you can’t download the app right away. However, you can request to be put on the waitlist. If you’re invited to try the Pickpocket app, you’ll get three months free. After that, you’re charged a $4.99 monthly subscription fee.
What spending accounts can I connect?
You can link a number of different spending accounts, including your debit and credit cards, to Pickpocket so that every purchase you make helps you pay down your student loans. You can add an account by navigating to the Accounts section in the app. If you want to stop Pickpocket from taking a percentage from a specific account, you can swipe left on the account to ignore it.
Why does Pickpocket pay toward my principal and not my interest?
Since most student loans use compound interest, paying down your principal first lowers the amount of interest that can accumulate. Applying $50 here and $50 there slowly but surely decreases the amount you owe. And once your loan is smaller, your interest payments won’t be as high.
Pay your student loans even faster with these tips
What are the benefits of Pickpocket?
- Flexible savings percentage. Not able to handle 10%? Want Pickpocket to “steal” even more from you? You can adjust the amount Pickpocket saves at any time. However, the minimum is 5%.
- Your friends and family can help. The app lets your friends and relatives sign up as sponsors and match any payments you make to help you beat debt even faster.
- Overdraft protection. There are safeguards in place to ensure Pickpocket never deducts money that causes you to overdraw your bank account.
- Big purchases not included. Pickpocket only applies to the first $500 of any purchase. And if you don’t want that purchase counted at all, you can always skip the transaction.
What to watch out for
- There’s a waitlist. Pickpocket is still in beta. If you want to start using the app to save, you have to sign up for the waitlist.
- Limited contact options. There’s no customer service line or live-chat feature. When you have a problem or complaint, you’ll need to submit an email request and wait for a response.
- No company information. Who runs Pickpocket? The answer is unclear. Unlike similar apps like ChangEd and Sum-it, there isn’t much information on the people behind Pickpocket.
Refinance your student loans to save money
How does Pickpocket’s sponsor option work?
Have a relative or friend who wants to help you reduce your student loans but doesn’t know how? The Pickpocket app allows you to enlist sponsors who match each payment you make. If you save up $50, your sponsor will give you another $50 — leaving you with a $100 payment toward your student loan. There’s no extra thinking or work for either of you, and you’ll pay down your student debt that much faster.
What does the Internet say about Pickpocket?
There isn’t much buzz surrounding Pickpocket. It doesn’t have a page on Trustpilot or the Better Business Bureau, nor does it have any user reviews online. This is likely because Pickpocket is still in beta and only became available in a limited capacity in February 2018. If you’re not sure about applying just yet, wait for more customers reviews. Or reach out to Pickpocket directly with any questions you may have about the app.
How does Pickpocket keep my information safe?
Pickpocket takes a number of measures to keep your information safe. Its servers are Payment Card Industry (PCI) compliant, it encrypts all user data and it regularly conducts security audits. In addition, Pickpocket never stores your financial information and sends all data through HTTPS.
Is Pickpocket right for me?
If you’ve been struggling to get ahead of your student debt, then the Pickpocket app makes it easy to automate extra payments. It’s a little different than its competitors. Rather than rounding up your purchases, it takes a percentage of each purchase you make and applies it as a payment to your student loan. If you’re already regularly making extra payments, you might not need Pickpocket.
How do I sign up?
Signing up for the Pickpocket app waitlist is simple.
- Visit the Pickpocket website.
- Enter your email and click Join the waitlist.
- You’ll be sent to a confirmation page. To put your name higher on the waitlist, you can invite friends and family to join.
How to join waitlist step-by-step with screenshots
Bottom line
When you’re ready to put a larger dent in your student loan debt, Pickpocket can help. The app is designed to make extra payments mindless by automating the entire process. However, the monthly fee is a bit higher than other apps. And because it’s still in beta, you don’t have a community of reviews behind it.
As you weigh the pros and cons between different spare change apps, consider refinancing your student loan to reduce your debt even more.