Announcing Spinwheel CRED To Help Consumers Manage Rising Credit Card Debt

We are spending a lot more than during the height of the pandemic. This is partially because our lives are getting more expensive: we’re traveling, eating out, and shopping again as restrictions have eased. Add in skyrocketing inflation rates, and it’s no wonder many Americans are taking on credit card debt to support their increased spending: compared to the depths of the pandemic, 45% of Americans have taken on more credit card debt. That’s why today, we’re excited to launch Spinwheel CRED: A novel suite of solutions designed to help Americans get out of debt more quickly, by enabling companies to embed Credit + Personal Loans, Real-time debt payoff, Embedded financing, and Data insights into their products.

It’s not about cutting out the non-negotiables
It’s easy to suggest that consumers watch their spending or cut costs, and in some cases, adhering to a strict budget can be helpful. But inflation doesn’t just target luxuries, and basic necessities like food, gas, and housing are non-negotiables. As the costs of daily living increase, Americans are opening new credit cards, borrowing more, and taking on more debt in order to ensure they’re meeting basic needs for themselves and their families.

Today, 64% of Americans are living paycheck to paycheck; of those with unpaid credit card balances, the average debt is $6569, and Americans’ total credit debt is up to $887 billion, marking a 13% increase from Q2 2021. That’s the largest year-over-year jump in 20 years. Plus, paying off those debts has become more challenging since the Federal Reserve has embarked on a prolonged course of interest rate hikes to curb inflation, with Credit Card APRs increasing in tandem. The average APR of a new credit card is at 21.4%, so it’s no wonder credit card debt has jumped by $40 million in the last quarter alone.

Debt is expensive, and data can help
So what do we do? The short answer is that we must leverage data to help consumers take control of their debt. Spinwheel’s Debt API enables companies to give actionable, individualized insights to their customers. This helps borrowers understand the impact and opportunities present in their current financial situation.

The average American with debt has to juggle multiple credit card accounts, student loans, mortgages, and auto loans, all with different totals and rates. Keeping track of debt, prioritizing repayment, and leveraging tools like personal loans to optimize debt repayment can feel like an insurmountable task.

Consumers need accurate data and organized insights to make smart financial decisions. Spinwheel CRED achieves this through:

1. Discovering and connecting all debt in one place with Spinwheel’s comprehensive data and insights so consumers can understand the details of their debt and credit cards
2. This data enables them to pay off debt faster, more efficiently, and with fewer costs associated. Spinwheel’s precision payments optimize payments to outstanding debt, prioritizing paying off higher interest loans so that borrowers can get the most impact and savings.
3. Spinwheel’s direct-disbursement debt pay-off technology automatically distributes funds to specific destinations including student loans, credit cards, auto, or any other liabilities. This makes debt payoff more efficient and effective, removing friction and reducing delinquency and default risk by up to 50%.

By innovating ways that consumers use lending products, including line of credit and personal loans, Spinwheel can help lower interest rates that consumers are paying on credit cards. This is especially important as credit card interest rates continue to skyrocket.

It wasn’t so long ago that it would take months or even years to change the way your business and customers view, interact with, and pay off their debt. But as Americans’ debt increases, it’s becoming increasingly easy to leverage data to transform the way you help consumers get ahold of their finances, thanks to our industry-leading debt APIs and low code drop-in modules. In an afternoon, you can make a major difference for your business and your consumers.

Get started here.