SAN FRANCISCO, Jan. 11, 2013 /PRNewswire/ -- ReadyForZero (www.readyforzero.com), the leading online platform for managing personal debt, today announced the release of a student loan acceleration option to address the growing American student loan burden. Last quarter the company announced its premium online payment functionality and has plans to quickly expand its suite of automated personal financial management features targeting long-term non-revolving loans. ReadyForZero's web and mobile-based tools target a wide range of customers from all 50 states with a variety of financial backgrounds, credit scores, and income situations.
ReadyForZero's biweekly acceleration option creates and automatically executes a biweekly payment plan online. By splitting monthly payments into two equal payments and making payments more frequently there is significant interest savings over the life of a loan. ReadyForZero's approach to acceleration is transparently delivered, less expensive than existing alternatives and can be cancelled or adjusted by users any time. The online service is competitively priced with a fixed setup fee for unlimited biweekly payments.
According to the Federal Reserve Bank of New York, there is almost $1 trillion in outstanding student loans and 11% of these loans are considered to be at risk of default. Student loan debt has become a serious issue affecting 1 in 5 U.S. households and a growing concern for lenders like Sallie Mae as well as regulatory bodies like the new Consumer Financial Protection Bureau. ReadyForZero's proven self-service technology platform positively influences financial behavior using proprietary automation that promotes successful and stable financial outcomes.
"The student debt burden and related increase in defaults have reached epic proportions," said Rod Ebrahimi, CEO of ReadyForZero. "Our new biweekly accelerated repayment options allow customers to 'set it and forget it' while saving them thousands of dollars and years of indebtedness. For many, these payments align well with their direct deposit paychecks. We recognize that this doesn't 'solve' the current student debt crisis, we are aiming instead to use technology to reduce the friction and pain associated with servicing large, daunting loans."
According to a ReadyForZero user from New York, "…using ReadyForZero allows me to confidently say 'I'm out of debt in 6 years, 5 months - that includes my student loans.'"
As a testament to its efficacy, ReadyForZero has experienced an average student loan growth rate of 20% each month, and has helped thousands of customers pay down over $30 million in debt since its debut in 2011. ReadyForZero's award-winning online program allows users to create a free personalized repayment plan, make one-time and recurring payments, and track financial progress in real-time. ReadyForZero has also expanded its partner program to include qualified educational institutions and higher education programs.
ReadyForZero's award-winning web and mobile-based financial tools have helped users successfully pay down over $30 million in personal debt on their own. ReadyForZero's online system develops a personalized plan using real-time asset, liability and credit bureau data, processes one-time and recurring payments, and tracks progress toward financial goals automatically. The company was launched in 2011 as part of Y Combinator and has attracted $4.5M from prominent venture capital investors.
The company is headquartered in San Francisco. For more information visit www.readyforzero.com.