Personal Finance News
EarnIn Announces Erasure of $10.6 Million in Consumer Debt
The on-demand pay app EarnIn has teamed up with ForgiveCo to eliminate a chunk of consumer debt.
About the debt alleviation:
EarnIn has revealed that the company has relieved more than $10.6 million in consumer debt. According to a press release, this primarily consisted of credit card debt and auto loans. Specifically, this debt relief was applied to select residents of Atlanta, Georgia with household incomes of less than $100,000 per year. The majority of these debts were listed as “active,” meaning that they were less than seven years old and were listed on consumers’ credit reports. Those impacted by this payoff will be notified of the payoff via a ForgiveCo letter, email, and text message.
As EarnIn notes, Georgia ranks as the state with the eighth-highest personal debt burden. On average, residents of the Peach State have $6,265 in credit card debt. Moreover, the state ranks fourth in terms of auto loan delinquencies, with 90-day delinquency rates 30% higher than the national average.
This latest action comes after EarnIn previously erased $2.7 million in medical debts. In that case, residents of Bexar County, Texas; Maricopa County, Arizona; and Clark County, Nevada were affected.
What they’re saying:
Commenting on the move to pay down the consumer debt, EarnIn CEO and founder Ram Palaniappan remarked, “Debt is a big barrier to financial freedom, forcing too many people to make difficult trade-offs between today’s needs and tomorrow’s dreams. Often, the only tool available to consumers in managing debt is to take on more debt, which is the number one obstacle to financial freedom. We believe financial momentum should be accessible to all, and EarnIn is dedicated to offering innovative financial solutions that meet the realities of the needs of working Americans.” Palaniappan added, “We want to help consumers break the debt cycle and alleviate the emotional burdens that are often coupled with having debt.”
Additionally, ForgiveCo’s CEO and co-founder Craig Antico stated, “Georgia residents experiencing increased levels of debt are prevented from reaching financial success and forced to make difficult tradeoffs that impact their lives daily. EarnIn has abolished over $10M of debt in Georgia and Atlanta, impacting more than 8,800 residents. That’s over $1,200 of debt abolished per individual. We applaud the work that EarnIn is doing to build financial stability and are thrilled to partner with the company to relieve these debts and enable people to achieve some financial and emotional relief.”
My thoughts:
There’s a lot of conversation surrounding the idea of doing good works in hopes of gaining publicity. To be sure, attracting press coverage is a key component of what ForgiveCo does and why Earnin has partnered with them in this case. Apparently, the plan worked as I’m writing about them right now
So, does the self-serving angle matter if real people are helped in the process? I’m inclined to say that it’s a net positive. In turn, I think this is good news — and I am betting that the people in Atlanta impacted by this move feel the same way.
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