Why We Built DebtWellness.com
Aug 23, 2023
Imagine owing a whole lot of money on your credit cards, making monthly payments and then watching the amount you have to pay back keep getting higher. This is happening to a lot of people. In the U.S. people owe a staggering $1 trillion in credit card debt — the highest number ever. Interest rates for many people have risen from 16% to 20% just this year. That's 25% more than last year!
Last year, something caught our attention at LoanSnap. People were coming to us for loans to fix up their homes, but our system revealed that they were already paying a lot for other debts like credit cards. Many of them felt like they were trying to decorate a sinking ship or as the phrase goes "rearranging the deck chairs on the Titanic." It doesn't make sense to make your home look nice if you're drowning in debt and could use the money to help fix the problem.
We realized that using a loan to pay off their more expensive debts would be much smarter because it would improve their overall financial well being — giving people more peace of mind.
Since we began focusing on helping our customers with their overall financial health last year, we have saved them $80 million. We helped our customers by not just quoting rates, but also by helping them understand all of their financial obligations and how to lower their spending.
Once we saw how important it was to help customers with their debt problems, we started asking people why they wanted to take out a loan for home remodeling instead of using that money to pay off other, more expensive debts. The answer was clear:
"They just didn't realize how big their debt problem was."
Higher interest rates are sneaky, like other "silent killers." When rates go up, the amount you have to pay back on credit cards and loans also goes up. Many people don't notice this since it's not too easy to keep track of — until now.
Before Debt Check, you'd have to spend hours looking at your credit report, writing down all the money you owe for each debt and how much you pay every month (which changes with interest rates), and then adding it all up in a spreadsheet. Then, you'd have to do it again next month to stay on top of things.
Debt Check does all this hard work for you in seconds! With Debt Check, you can automatically see how much money you're spending on your debts each month and year. We show you everything in an easy-to-read report and even highlight what's costing you the most so you can deal with it first. Plus, we update the report every month and send you alerts when something changes, whether it's good or bad. Best of all, it's free!
In simple terms, DebtWellness.com is here to help you understand and manage your debts better, so you can make smarter choices and have a healthier financial future.