Qoins
- Qoins is rolling out a new feature, named MoneyTree, that allows users to invite their family members and friends to help pay down their debts.
- Since the upstart was founded in 2017, it has made a total of $4.5 million in debt payments for its users, according to Qoins cofounder and CEO Christian Zimmerman.
- Credit card debt is stacking up in the US. A report by ValuePenguin shows more than 40% of all US households carry credit card debt, with the average American household carrying a balance of $5,700.
- The total amount of consumer debt, including credit cards, student and auto loans, and personal loans, is $4.03 trillion, according to the data released by the Federal Reserve.
Qoins, an Atlanta-based startup that helps people pay down their credit card debt, is rolling out a new feature that will lend users an extra pair of hands to pay off their debts.
Qoins offers an app that rounds up users’ spare change to whittle down their debt. The app plugs into users’ bank accounts, through Plaid’s API, and rounds up each of their purchases to the nearest dollar. Once the roundups reach $5, the money is transferred to an account held by Qoins, which then sends a payment to the loan servicer on the user’s behalf every month. The company charges $1.99 on each monthly payment.
The newly announced feature, named "MoneyTree," lets users invite family members and friends to connect their bank accounts to Qoins and contribute payments to the debt the users owe.
The startup, founded in 2017, has made a total of $4.5 million in debt payments for its customers, according to Qoins cofounder and CEO Christian Zimmerman.
About 80% of its debt payments go to credit cards, and the rest of the payments are for student loans, mortgages and auto loans.
Credit card debt is stacking up in the US.
The average credit card debt has been increasing over the past ten years, according to a report released by ValuePenguin. The firm found that more than 40% of all US households carry credit card debt, with the average American household carrying a balance of $5,700.
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Source: Business Insider – mshi@businessinsider.com (Madeline Shi)