Setting up any business is hard by itself but what is more difficult is to sustain in it and survive this highly competitive business scenario. Most startups are unable to face the many challenges involved in the process and roll down the shutters early giving up easily. However, if you are competent and strategic in your approach, you will be able to survive even if you have to incur some debt to deal with the day to day operations of your business.
This rule is applicable in financial services as well. In recent years, you may have seen a significant surge in new financial startups. There are a few incredible investing apps as well as innovative money software available that enables the entrepreneurs to create unlimited scope in terms of financial services.
As a successful and favorite financial startup, you must help consumers directly to get out of debt. The most significant debt that most of the consumers face is credit card debts. With the rate of interest high and ever increasing, these debts are very risky and often leave consumers bankrupt or insolvent.
A lot of debt management knowledge and financial education is required to find the best tactics to deal with such problems and to get out of debt. Uninformed and uneducated consumers may have to repay such debts for a very, very long time.
Tools to use
Fortunately, several innovative financial startups can come to the rescue of the consumers helping them to address debt and stay out of it.
- Ready for Zero – You can use the Ready for Zero tools to assess the situation if you have a student loan debt. The best feature about this tool is that it syncs with the actual accounts. That means there will be no disconnect between the debt you have and the debt that you think you have. Simply enter your username and password for the federal student loans and the tool will show you the minimum amount to pay and how much time you will need to repay it off completely this way. You can also see how much you can save on interest if you pay above the minimum simply by adjusting the numbers in this useful and effective tool.
- Debt Companies – This is another incredible startup final service that will help you a lot in paying off your credit card debt. It works by taking all your information and offering you a consolidation loan. Therefore, you can now pay off all your debts at one go and focus on repaying only one loan. You will not have to worry about all those different credit cards that have a varying rate of interest. You pay one monthly fee. However, you must study debt companies and their strategies before you select one as few of them may not combine personal loans or student loans with credit cards while offering you with a consolidated loan.
- SoFi – If you have a number of other loans apart from credit cards then this is the best option to use. Students will be refinanced, personal loans and mortgages will be issued, but most significantly it will offer you a valued network of entrepreneurs. In addition to that, if you are borrowing money for your MBA, then you may also get complimentary career coaching; however, it is offered for a few specific universities. Therefore, if you want to reduce the impact of debt while going to school, know the other options along with the customizable solutions. Availing this option is far better than availing any bank or federal loan at random that provides minimal customer support and service.
- Upstart – This is another financial service you can avail to get out of debt. You can avail personal loans at different rates of interest and for an extensive range of diverse credit profiles. However, recent graduates may find a bit of preference as they target them primarily. Even those people who did not have enough time or scope to build a strong credit score may also take help from such financial service. The most significant attribute of this financial service is that they use a specific proprietary algorithm rather than relying on those traditional indicators of financial health such as available credit and your credit history that are usually associated with conventional financial institutions. Creditworthiness is determined on the basis of a career, job history, education, and standardized test scores.
- Earnest – For all recent graduates who have debts and want to consolidate but have an imperfect credit history, this type of financial service provides a variety of financial options that were out of reach previously. This loan company will look into much more than your credit score, it will know about you as a customer. They follow a very extensive process of reviewing your financial status, job history and after that will offer you a personal loan at an interest rate that is suitable for you and payable considering your financial status. If required, they may even check your LinkedIn profile as a part of their review process. The most significant factor of Earnest is that they favor borrowers who have not maxed out their credit limit and are well educated.
- Gradible – This is the most important source for people who do not earn much or have a work they like and can meet the extra payments on student loans. This company partners with different other companies and market research firms and offer errands that are easy to complete for people earning a low income. It pays around your minimum wage and depends entirely on how fast you complete the tasks given. The money you earn is directly applied to the student loan. The tasks may include posting things on the site, writing articles for blogs and even ‘liking’ a few businesses on Facebook.
Therefore, with a little research, you can choose the best tools to earn financial freedom if you are currently in debt such as student loan, credit card or any other loan that you want to pay off.