The startup has developed a mobile application that connects borrowers' loan servicers and bank accounts to facilitate automatic withdrawals of spare change from everyday purchases. This approach enables students to make additional payments on their student loans by accumulating funds in an FDIC-insured account, addressing the challenge of high student debt repayment.
Funding
$460K raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
DCFMCVFounders
Product
Problem
Many borrowers struggle to make extra payments on their debt due to budgeting constraints and the difficulty of setting aside additional funds. This can lead to prolonged repayment periods and increased interest costs, making it harder to achieve financial freedom.
Solution
Changed provides a mobile application that automates debt repayment by connecting to borrowers' loan servicers and bank accounts. The app rounds up everyday purchases to the nearest dollar and automatically transfers the spare change into an FDIC-insured account. Once the account reaches a certain threshold, the funds are automatically applied as an additional payment to the user's debt. This approach enables users to make consistent progress toward debt repayment without requiring active budgeting or significant lifestyle changes. The app supports various debt types, including student loans, credit card debt, auto loans, personal loans, and mortgages, and also allows family and friends to contribute to a borrower's debt repayment.
Target Audience
The primary target audience includes individuals with student loans, credit card debt, auto loans, personal loans, or mortgages who are looking for an automated and effortless way to accelerate their debt repayment. The app also targets family members and loved ones who want to contribute to a borrower's debt repayment goals.
Features
- Automatic round-up of everyday purchases to the nearest dollar
- Securely links to various loan servicers and bank accounts using bank-level encryption
- FDIC-insured savings account for accumulating spare change
- Customizable savings goals and round-up multipliers to accelerate debt repayment
- Option to set one-time or recurring savings boosts based on budget
- Ability to split savings between debt payoff and emergency savings
- Progress tracking tools to visualize debt reduction and savings in time and interest
- Family and Loved Ones feature allows multiple contributors to help pay off debt together
- Credit score monitoring and personalized recommendations to maximize savings
- Integration with loan refinancing partners for potentially lower interest rates