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Startup Idea #6: Using Crowd funding for Credit Card Payment

In these days, Each and every country have a slow economy. Each individuals are being forced to use Credit Card. Almost every one faces the problem of Paying back the credit amount they got it from the Credit Card issuing bank.

If you google on how do Credit Card companies make money, you would see 275,000,000 results.

Here is a little infographic.

How do Credit Card companies make money?

Infographic clearly says many things. but one major mode through which cc companies make money is through Interest being paid on the loan. It can be purchase loan or cash loan.

Most people who have used credit card would surely have faced this. At-least once, each one of us would have paid the interest charges. The Interest charges on cash withdrawals are way too high compared to credit card purchase.

Still, due to the bad time / worst economic situation, people are forced to withdraw cash and thereby end up paying interest charges. Why can’t these charges be paid through trusted crowd funding? also why should we limit ourselves to only 50 day grace period? why can’t we increase it?

Thats where i thought about this silly / simple idea of crowd funding your credit card payment. Lets see how it can work.

Physical Scenario:

mostly, we often ask for economic help from our friends or relatives during economic downtime. To pay the current debts or what ever loans we have.

Online Scenario:

The above one can be easily replicated online. Lets say, a person can have his trusted friends / relatives in his social network whom he thinks can help during his economic slowdown. He / she can raise the crown funding request. ofcourse, there are limits on the amount raised.

His / Her friends can donate certain amounts and thereby reaching the goal and paying for the current month debts. He / she should clearly explain his / her current economic situations to the donors. Based on that donors can take the call and donate.

For donors, they can also get the money back with few interest or may be split the interest the interest amount charged by the bank and distribute.

Pros :

  1. Each person gets more credit period than the established one.
  2. we all be benefited and thereby helpful to the people we know.

Cons:

  1. What if the person is not able to pay the debt back in time? Of-course, (s)he should be charged and making him out of the network.

There can be lots of advantages and disadvantages in this idea. surely, if this grows as a big one, credit card companies will hate such crowd funding sites.

Whats your take on that? Will this be useful? Share your thoughts on the comments below.

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