By Samantha McKenzie, CSG Development Fellow
Since 2023, communities in Arizona, Georgia, Nevada, and Texas have experienced significant debt relief thanks to an initiative of EarnIn, an app-based financial technology company. EarnIn’s partnerships with Undue Medical Debt (formerly RIP Medical Debt) and ForgiveCo have collectively generated $32.6 million in debt relief for more than 18,800 randomly selected individuals.
Residents of Las Vegas, Phoenix and San Antonio were among the first to receive relief when, in September 2023, EarnIn partnered with Undue Medical Debt to erase $22 million in medical debt. By June 2024, EarnIn expanded its efforts, teaming up with ForgiveCo to relieve an additional $10.6 million in consumer debt, primarily credit cards and auto loans, for individuals residing near Atlanta — all of whom came from households with incomes under $100,000.
“Often, the only tool available to consumers in managing debt is to take on more debt, which is the number one obstacle to financial freedom. We believe financial momentum should be accessible to all, and EarnIn is dedicated to offering innovative financial solutions that meet the realities of the needs of working Americans, said Ram Palaniappan, EarnIn founder and CEO.
For many individuals, debt can be a barrier to such larger goals as home ownership, which is largely impacted by loan rates and acceptances that are heavily influenced by buyer credit scores. Not only do potential loan creditors look at credit scores, but they also look at the history of the client’s previous payments, including whether the client has consistently paid on time.
“I am on my own journey to pay off debt, and this brings me one step closer to getting out of the situation I am in. I cried when I saw the notice,” said Shanice, a Georgia resident who had more than $450 in credit card debt forgiven. “… With inflation, it’s like a pit that you can’t get out of. I want people to continue to have hope and know that there is still good in the world.”
The average American carries approximately $104,000 in debt. Substantial burdens like this can promote poor mental health, as its emotional weight on individuals can lead to a constant state of concern. According to a 2017 study by the Royal College of Psychiatrists, 50% of adults with debt problems experience poor mental health, ranging from persistent anxiety to diagnosed medical conditions such as depression.
On behalf of EarnIn and the debt relief initiative, Palaniappan shared that the overarching goal is “to help consumers break the debt cycle and alleviate the emotional burdens that are often coupled with having debt.”
About EarnIn
EarnIn lets you access your money as you earn it — not days or weeks later.
We’re on a mission to reimagine the way money moves to empower every personʼs potential. That starts with payday every day and builds with automated savings tools, credit monitoring, and low-balance alert features.
So our customers have as many opportunities as possible to spend and save on their terms.
EarnInʼs pioneering Earned Wage Access app is backed by world-class partners like A16Z, Matrix Partners, and DST. Since our founding in 2013, 3.8 million customers have given it over 380,000 5-star reviews for helping them access over $15 billion in earnings.
Learn more at EarnIn.com.