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StellarFi forgives $50M worth of consumer debt

Austin, TX (December 13, 2023)—StellarFi, a financial technology company working to close the credit gap by helping members increase their credit scores and reach their financial goals, today announced the launch of its debt forgiveness program. The company has purchased and forgiven $50M worth of consumer debt in order to free Americans—whether or not they are current StellarFi members—from financial burdens. This news comes following a highly successful year for StellarFi, despite a tumultuous year for the fintech industry and economy as a whole. The company announced $15M in Series A funding in March of this year, led by Acrew Capital, to double its employee headcount and make credit universally accessible. StellarFi also achieved more than $14.5M in bills paid through its platform, resulting in a 1.1M overall point increase for its members*. The company is growing rapidly, gaining over 513k registrants in 2023, reflecting its credit-building tool’s effectiveness and impact on individuals seeking to improve their financial standing.

Delinquent consumer debt is a massive hindrance in the economic output and growth of the U.S. economy. Studies show that consumer debt in the U.S. reached more than $16T in Q2 of 2023. More than 340 million Americans are carrying some form of debt, while 64 million Americans specifically have credit card debt. Because of this, consumers are spending less, resulting in a halt in economic growth. StellarFi purchased and forgave a wide spectrum of debt resulting from consumers’ monthly bills including gym memberships, phone bills and utilities. Those consumers can join StellarFi to access StellarFi’s bill pay tool, which helps members automatically pay their monthly bills to boost their credit scores, and eventually have the forgiven debt reported to the credit bureaus. StellarFi will not be collecting on the debt, meaning that the consumers whose debt was purchased will no longer be chased by creditors to pay back what they owe, whether or not they claim the debt and sign up for StellarFi. 

“StellarFi’s debt forgiveness program is our next step in helping Americans improve their credit and overall financial standing,” said Lamine Zarrad, CEO and Founder of StellarFi. “Consumer debt is a nationwide epidemic holding so many families back from financial freedom. StellarFi is committed to finding new ways we can help consumers and build economically-significant technology that will redefine modern personal finance.”

“StellarFi’s walks the walk when it comes to helping its members be financially steady, especially in challenging economic times,” said Angela Yee, Founding Partner of StellarFi. “So many of us know how overwhelming being bogged down by debt can feel, so I’m excited to be part of this new initiative and launch a program to help so many people. This debt relief will have a long-lasting impact on StellarFi members and will help them achieve important financial goals that weren’t previously possible.”

“Our economy can be transformed if we address the issue impacting so many Americans: poor credit,” said Joanne Bradford, Board Member at StellarFi. “Financial technology companies have a duty to build tools and programs that support Americans’ economic health. StellarFi’s debt forgiveness program is our way of helping people make good credit their reality, and the StellarFi bill-pay membership is available to all Americans so they can steer clear of having delinquent debt.”

With its debt forgiveness program, StellarFi plans to rehabilitate Americans who have been financially confined due to delinquent debt, educate new members on financial literacy and offer its bill pay tools to assist its members with paying bills on time. StellarFi does not require a credit check or a deposit, and charges no interest rates. The seamless registration allows members to choose a subscription plan starting at $4.99/month, with StellarFi’s “Prime” plan offering a 30-day $0.99 trial then charging $9.99/month. StellarFi reports positive, everyday bill payments, such as rent and streaming services, to the major credit bureaus to help its members improve their credit. The company intends to release a mobile app in the coming months to make its offerings more accessible. 

For more information, please visit https://stellarfi.com/nomoredebt.

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*1.1M credit score point increase data applicable to StellarFi member scores increased throughout their lifetime on the platform, starting at 299 points or above. 

ABOUT STELLARFI

An Austin-based public benefit corporation founded in 2022, StellarFi is on a mission to provide credit-building tools to the masses so that anyone who pays bills can improve their credit standing and reach their financial goals. Driven by his prior success in tackling complex financial problems, StellarFi founder and CEO Lamine Zarrad plans to expand financial equity nationwide and support millions in their journey toward financial security. Visit stellarfi.com for more information.

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StellarFinance, Inc. and its affiliates do not provide financial, tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own financial, tax, legal, and accounting advisors before engaging in any transaction.