SAN FRANCISCO, Oct. 27, 2011 /PRNewswire/ -- Today, ReadyForZero (www.readyforzero.com), the leading online platform for managing and reducing personal debt, expands its successful software program beyond credit card debt to include mortgage, student loans and auto loans. The expanded ReadyForZero platform helps consumers manage all of their consumer debts in one place online.
Since the Company's launch in February 2011, thousands of Americans have taken control of their financial situations with ReadyForZero. Consumers of all ages (18-75) from all 50 states with credit scores ranging from 450 to over 800 have used ReadyForZero to manage more than $65 million in credit card debt. The free program increases the likelihood people will repay their debts and prevents difficult financial situations.
Based on learnings from ReadyForZero's first release and feedback from its users, the new ReadyForZero platform will allow people to:
- Create a customized plan to pay down mortgage, student and auto loan payments, in addition to credit card debt
- Track and manage all of their debt from a single, easy to use destination online that automatically links to all external accounts
- Prioritize debt to ensure it's paid down in the fastest, most beneficial way, protecting their credit ratings
- View the speed at which they are paying down their debt
- Access personalized financial education content to get organized and stay in control
- Share their financial progress with others
The New York Fed recently reported that consumer debt, not including real estate, now stands at $2.29 trillion, and according to Fair Isaac, the company that invented the FICO® credit risk score used by lenders, today's consumer has, on average, a total of 13 credit obligations including credit cards (such as department store charge cards, gas cards and bank cards) and installment loans (auto loans, mortgage loans, student loans, etc.).
"ReadyForZero is a different kind of financial services company that uses Internet technology to solve a problem millions of Americans struggle with – debt. We believe with the right tools Americans can stay on top of and improve their financial situations on their own. The data speaks for itself, ReadyForZero works for people," said Rod Ebrahimi, chief executive officer of ReadyForZero.
Ebrahimi continued, "Debt isn't only a consumer issue, the banks and financial institutions that hold consumer debt need Americans to pay. If we don't pay our car loans, our student loans or make our mortgage payments, the whole economy suffers."
Ignacio Thayer, co-founder and chief technology officer of ReadyForZero, explained, "As we have seen with our credit card only offering, ReadyForZero makes a huge difference in consumer behaviors, helping them to prioritize and better manage their debts online."
According to a recent Wall Street Journal story, the class of 2011 will carry, on average, $22,900 in student loans. These students face bleak prospects in securing a well paying job to enable them to pay down these loans. Additionally, most college students have some form of credit card debt.
According to the FDIC, in August banks reported $102 billion in principal balance more than 90-days delinquent, down 2.6% from the previous quarter and down 3.5% from one year ago. However, the amount of underwater mortgages and loan delinquencies still remains high despite low interest rates for home loans.
One of the key components of consumer credit is the auto loan. Millions of Americans are in the process of making monthly car payments. And while the overall credit payments of Americans seems to be solidifying, making auto loan payments is still difficult for many people. According to Experian, auto loans that are delinquent by 30 days fell to 2.59 percent of those outstanding in the second quarter of 2011, down from 2.89 percent a year earlier.
Thayer concludes, "By offering consumers the ability to manage their mortgages, student and auto loans along with their credit cards, ReadyForZero now offers a complete program that is easy to use and most importantly has been proven to prevent challenging financial situations."
ReadyForZero is a free, online program that helps the more than 100 million Americans with debt and challenging financial situations better manage their debts and credit reputations without impacting their credit scores. Launched in February 2011, ReadyForZero users are paying off debt twice as fast as people not using the program. The company is headquartered in San Francisco. For more information visit www.readyforzero.com.