Scenario: You and two other couples are renting a rustic-chic cabin for the last week in October. You bought the groceries and rented the minivan. Couple two paid for the house. Couple three contributed nothing but the backgammon board. How do you divide the bill?
Solution: Splitwise, a genius free Web and mobile app for managing IOUs.
Upon signing up, you’re prompted to create a group for everybody involved in the transactions. Next, anyone in the group can begin adding payments they’ve made ($40 for wine) or debts they owe ($16 to Mitchell for gas), and Splitwise keeps a running ledger of the dealings. When adding a bill, you have the option of dividing it evenly among participants or splitting it by either percentage or itemized breakdown--which is great when, say, Mitchell drinks 80 percent of said wine.
When it’s time to settle up, Splitwise does the math to calculate who owes who what and can even simplify your debts to minimize transactions (e.g., if Mitchell owes you $10 and you owe Susan $10, Mitchell can just pay Susan that $10).
Though the app easily facilitates PayPal payments for squaring debts, we’re partial to our beloved Venmo or even a good old-fashioned check.