Paydownhero, a Boston-based fintech empowering consumers to pay down auto debt, announced its debit card with 3% Cashback Gas Rewards and 15% RoundUp Rewards, on track to launch this summer. The debit card will add cash rewards to users’ round ups and give a helping hand to pay down car loans faster. Paydownhero’s gas rewards will battle rising fuel costs with cashback to help users save even more. The startup is on a mission to reduce auto debt and to increase savings by supporting positive rewards. The debit card will enhance the current roundup app that uses the spare change from your daily transactions and makes additional payments to your car loan. The roundup app is already available on iOS, and Android.
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“Cars are central to most families’ lives. We aim to help users manage one of life’s most costly ongoing expenses. Your car expenses shouldn’t be a mystery. The experience of paying down debt, saving money, and enjoying the rewards should be frictionless,” said Ken Sargavakian, CEO and co-founder of Paydownhero.
The startup aims to pay off the entire car loan for one new user, up to $50,000, and jumpstart a debt-free journey. Users can sign up for the Waitlist at the company’s website and qualify for early-access and a chance to say goodbye to their car loan. It’s that simple. Users can climb the car loan pay off leaderboard and earn points by sharing a personal link and by referring friends to join the Waitlist.
“We can’t wait to give our customers cash to pay down more debt and put more money directly into users’ pockets,” added Erik Rueda, CPO and co-founder. “The debit card and cash rewards will help users manage the major expense of car ownership and anticipated developments will add even more features to support financial goals.”
The car-loving company completed its second capital raise in late 2021. Mucker Capital, a Los Angeles-based Venture Capital firm, is the lead investor for its Pre-Seed round. Mucker Capital has a focus on software-based disruption. Paydownhero is working closely with partners to continually offer positive innovation to its customers.
Paydownhero was founded by two U.S. Army Veterans to help drivers pay down their car loans with a simple, automated solution. The two car enthusiasts are inspired to help people tackle lengthier and larger auto debt.
Americans owe a record-setting 1.4 trillion dollars in auto debt and climbing. Despite rising interest rates and inflation, vehicles should remain a critical part of life for many families. 85% of new cars are financed. The average new car loan comes with monthly payments of $600 over 6 years. Most people are forced to rely on any automobile financing that is available, to meet their needs.