Whether you’re using a large language model like chat GPT, enjoying a ride in a self-driving car, or engaging with a digital assistant, AI is all around us. Artificial intelligence is today’s hot topic and has been since the release of Chat GPT in November 2022 by OpenAI. The applications for AI are endless, from assisting with medical diagnosis in healthcare to the creation of personalized learning in education. You can also use AI as a tool to improve your financial literacy.
Have a question about debt that you’re too embarrassed to ask your friends? AI can help. Want to create a budget but not sure how to start? AI can help. While AI isn’t a replacement for professional financial advice, it can offer a range of financial information to help you grow your knowledge and understanding.
Keep reading to learn how to use AI for debt help and general financial advice.
How to Use AI for Debt Help
If you’re dealing with mountains of debt and looking for strategies to get back on track, you can use AI tools like ChatGPT. Some examples of how you can get debt help using AI include:
- Repaying debt. Ask AI for different debt repayment strategies to provide a blueprint to work towards debt freedom. AI can explain everything from how each strategy works to the pros and cons.
- Financial literacy. If you’re unfamiliar with a financial term or concept, you can quickly look it up using AI.
- Creating a budget. When dealing with debt, a budget is a useful tool to help you keep track of your money. If you’re not sure how to make a budget, AI can help. Input your income and expenses into ChatGPT and ask it to create a budget. Or, there are several AI-based budgeting apps you can use to track your spending.
- Tips to cut spending. To get out of debt faster, you might need to reduce your spending. You can ask AI for generic tips to cut spending or have AI review your budget to identify areas where you appear to be overspending and have it suggest ways to adjust.
- Money-making suggestions. Want to make more money so you can pay down your debt faster? By entering information about your passions and skills, AI can suggest ways to boost your income that fit your specific interests.
Benefits of Using AI for Debt Help
There are a wide range of benefits associated with using AI for debt help, including:
- Personalized financial literacy. AI allows you to ask personal financial questions. By inputting your financial information, such as your income, expenses, or debt level, you can get more tailored answers to questions than you would from a financial website or podcast.
- Easy and efficient access. If you have a financial question, there’s no need to make an appointment, you can gain access to information in a matter of seconds.
- Can perform calculations. If you want to figure out how long it will take you to repay your credit card or what your current debt-to-income ratio is, AI can help with the calculations.
- You don’t have to worry about feeling judged or embarrassed when you ask AI for debt help. Since there’s no face-to-face interaction, this may help to reduce feelings of shame and allow you to get the information you need to make a positive change.
- Free of cost. If cost is prohibiting you from getting financial help, many AI tools provide free access.
Risks of Using AI for Debt Help
There are also a number of risks to consider when using AI for debt advice, including:
- Accuracy of information. There’s no guarantee that tools like ChatGPT are always accurate. The answers sound professional and factual, making it hard to discern what is right or wrong.
- No debt situation is exactly the same. AI might oversimplify your debt issues and miss some of the complexities that a financial professional might catch.
- Privacy. There are risks associated with putting your personal information into an AI tool, especially when it comes to your financial information. It’s possible that tools like ChatGPT could get hacked, so consider this before sharing too much information.
- Lack of human judgement. While AI can make logical financial decisions, it lacks human emotion. Money is very emotional. The most cost-effective decision might not be the right one that’s right for you.
- Not a financial professional. AI is not a replacement for a financial professional. If you’re dealing with significant debt and considering debt solutions like Bankruptcy or a Consumer Proposal, you’ll need to speak to a Licensed Insolvency Trustee (LIT).
Should You Get Debt Help Using AI?
AI can offer easy and efficient access to financial information and debt help advice. It can assist you in creating a debt management plan and perform calculations to help you understand your financial situation. However, there are risks. While AI is a good way to expand your financial literacy, it’s not a replacement for a debt professional. Also, if you are feeling stressed about your financial situation, using AI may add to this stress, wondering if the information is accurate.
If you’re dealing with significant debt and considering a Consumer Proposal or Bankruptcy, you should reach out to a LIT. Licensed Insolvency Trustees are the only professionals in Canada who can administer these formal debt relief solutions. When you meet with a LIT, they’ll assess your specific debt situation and help you come up with a personalized plan so you can get out of debt and stay out of debt.
For a free, no-obligation consultation, call Allan Marshall & Associates at 1-888-371-8900 or complete our online contact form.
