Tech Help Is Here for Personal Finance
Dennis McCafferty | Date: 05-18-10 | Comments: 1
- With financial challenges come innovations. At least that's what these three tech companies are providing for consumers still reeling from shaky economic times.
The recent recession has inspired many Americans to
carefully examine their personal finance practices, whether they're dealing
with debt, savings challenges or a lack of credit. And, as often is the case in
challenging times, tech companies are coming up with better ways to help
consumers work through these issues. Here are three Web-based resources that
are doing just that:
- DebtGoal.com: DebtGoal bills itself as a "Do It
Yourselfer" for those facing crushing debt and guides members on their own
path to organize and pay off what they owe. Founded by Scott Crawford, who ran
product R&D in HSBC Banks' credit card group, DebtGoal is now partnering
with author/personal finance expert Jean Chatzky ("The Today Show"),
who's showcasing it via her online personal finance program, The Debt Diet.
DebtGoal uses what it calls the SmartPay Plan algorithm to calculate a
customized debt plan for customers. This personalized plan allows for the
quickest pay-down plan possible, based upon the customers' due dates, late fees
and other financial details. Users are saving more than $35,000 in interest and
getting out of debt 16 years sooner than they would otherwise, the company
reports. DebtGoal has also launched the NegotiateMyRate.com site, which uses
crowdsourcing technology to allow credit card borrowers to get better rates
from lenders by 3 to 11 percent.
- Lending Club: This peer-lending network connects investors
and borrowers to offer better rates for consumers. Seeking to reduce the risk
of lending, it takes advantage of existing communities—and common ground when
it comes to geography, education, professional backgrounds and other categories—to
more effectively connect borrowers and lenders. (The idea behind this is that
borrowers are less likely to default to a lender with whom they share these
kinds of connections.) By March, it captured nearly 80 percent of the U.S.
peer-lending market with more than $8.6 million in monthly loan originations.
- PerkStreet: The “Perk” in PerkStreet is about lots of free
stuff and an absence of fees. This online checking account resource costs
nothing and charges nothing for its abundant supply of ATMs, and offers 1
percent cash back as well. Founded by Dan O'Malley, who previously co-launched
Capital One's payments division, PerkStreet uses no bank branches, which
eliminates expensive capital and operating expenses. As a result, it's able to
provide the same kind of rewards on debit cards for rewards at Starbucks and
iTunes as other consumers get for using their credit cards. “Earning rewards
for using a credit card encourages you to—surprise—use your credit card too
much,” says O'Malley, who feels that encouraging incentives for debit card use
instead helps consumers to make more responsible financial decisions.
