System and method forfinancial management and analysis

• US 20090030819A1
• Filed: 09/16/2008
• Published: 01/29/2009
• Est. Priority Date: 12/15/2000
• Status: Abandoned Application

• Current Assignee: Michael J. Vanleeuwen
• Original Assignee: Michael J. Vanleeuwen
• Inventors: VanLeeuwen, Michael J.
• Application Number:
  US12/283,982
• Publication Number:
  US 20090030819A1
• Time in Patent Office: Days
• US Class Current: 705/30
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

A method is provided for analyzing a user'"'"'s finances and providing a plan for debt reduction. The method includes acquiring aggregated financial data for a user from a financial data clearinghouse. Another step is classifying financial transactions received with the aggregated financial data into a plurality of budget categories without user input. A further step is applying the financial transactions to the budget categories. The budget categories further include a budget amount and budget balance. An additional step is modifying the budget balances without user input based on increases or decreases caused by the financial transactions. A further step is displaying the budget categories, budget amounts, modified budget balances and the financial transactions to aid the user in debt reduction.

Claims

1. A method for determining a financial debt that should be paid down first to reduce a person'"'"'s overall financial debt, comprising the steps of:

storing debt information for a plurality of debts, wherein the debt information for each financial debt includes a principal amount, and interest rate, a periodic payment, and a debt payment length;

comparing the periodic payment of each debt to the principal amount;

creating a numerical ranking for each of the debts based on dividing the periodic payment by an original principal amount or a remaining principal amount;

identifying the debt to pay off first based on the highest numerical ranking of the debt to allow the plurality of debts to be paid off in a reduced amount of time; and

automatically paying the identified debt to pay off first according to the highest numerical ranking of the debt.

2. A method in accordance with claim 1, further comprising the step of determining a sequence in which the plurality of debts are paid down to pay the debts off in reduced time.

3. A method in accordance with claim 1, further comprising the step of applying additional power payments to the debt that has been identified to be paid off first.

4. A method in accordance with claim 1, further comprising selecting a next debt to be paid off after the debt to be paid off first has been paid off, wherein the next debt is selected based on the next highest numerical ranking for the plurality of debts.

5. A method in accordance with claim 4, further comprising adding the periodic payment amount of the debt to be paid off first to a periodic payment amount of the next debt to be paid off.

6. A method in accordance with claim 4, further comprising adding an extra amount equal to one monthly payment each year to one of the debt to be paid off first and the next debt to be paid off to enable at least one of the debts to be paid off at an accelerated rate.

7. A method in accordance with claim 4, further comprising adding a one time payment to one of the debt to be paid off first and the next debt to be paid off to enable at least one of the debts to be paid off at an accelerated rate.

8. A method in accordance with claim 1, further comprising determining which debts to pay off first using a wizard configured to assist a user in the steps of comparing, creating, and identifying.

9. A method in accordance with claim 1, further comprising calculating the periodic payment based on the principal amount and the interest rate.

10. A method in accordance with claim 1, further comprising determining whether the periodic payment is based on an amount listed on a bill for one of the plurality of debts.

11. A method as in claim 1, wherein storing debt information for a plurality of debts further comprises the steps of:

acquiring aggregated financial data for a user from a financial data clearinghouse;

classifying financial transactions received with the aggregated financial data into a plurality of budget categories without user input;

applying the financial transactions to the budget categories, wherein the budget categories further include a budget amount and budget balance;

modifying the budget balances without user input based on increases or decreases caused by the financial transactions;

displaying the budget categories, budget amounts, modified budget balances and the financial transactions to aid the user in debt reduction.

12. A method as in claim 11, further comprising the step of modifying the suggested budget amounts and budget categories based on the user'"'"'s input to a pre-filled electronic form displayed to the user.

13. A method as in claim 11, further comprising the step of allowing a user to accept the suggested budget amounts and budget categories.

14. A method as in claim 11, further comprising the step of determining areas of the budget categories where expenses can be reduced.

15. A method as in claim 11, further comprising the step of providing a debt reduction strategy based on the aggregated information received and the suggested budget amounts and budget categories.

16. A method as in claim 11, wherein the step of acquiring aggregated financial data received from the financial clearinghouse further comprises the step of acquiring aggregated financial data that includes the user'"'"'s financial account information with deposit and withdrawal information.

17. A method as in claim 11, wherein the step of acquiring aggregated financial data received from the financial clearinghouse further comprises the step of acquiring bill presentment and payment information.

18. A method as in claim 1, wherein the step of storing debt information for a plurality of debts further comprises the steps of:

acquiring an aggregation of financial data for a user from a financial data clearinghouse;

classifying financial transactions received with the aggregated financial data into a plurality of budget categories without user input;

applying the financial transactions to the budget categories, wherein the budget categories further include a budget amount;

providing the user with a listing of expense reducing items that can reduce the user'"'"'s debt;

comparing budget categories and the budget amounts to expense reducing items accepted by the user to define a budget margin for budget categories; and

applying the budget margin to pay down the user'"'"'s debts.

19. A method as in claim 18, further comprising the step of paying at least a portion of the budget margin toward retirement savings after a portion of the user'"'"'s debt has been paid off.