In October 2010, we started ReadyForZero to help people in debt take control of their finances and get out of debt. The initial product, which launched in Feb 2011, focuses on helping people devise a plan to understand and eliminate credit card debt and achieve their financial goals. The premise is simple: You link your credit card accounts to the website and tell us how much you can afford to contribute towards paying off your debt. Then, we run the numbers for you, performing some secret sauce magic on the back-end, and voila: Out pops a plan to help you pay down your debt that is designed specifically for you based on the various interest rates and balances on your cards.
Now, a few months after the initial launch of the service, we couldn’t be happier to discover that those of you who regularly use ReadyForZero are taking control of your finances and paying down your debt twice as fast as people who rarely use the service . That’s huge!
See the dark blue line going down and to the left faster than the other two? That’s you, our awesome, frequent users, paying down your debt and showing it who’s boss!
“How did we come to this conclusion?” You might ask. Well, we’ll tell you:
First, we gathered the data of all the people who had signed up for the ReadyForZero service during the very first week of the launch of our product. We divided this group of users into 3 sub-groups based on the number of times they’ve signed into the service after the initial sign-up: Regular users (10+ sign ins), occasional users (2-10 sign ins) and rare users (0-1 sign ins).
Next, we tracked their progress over a period of 18 weeks by looking at the average amount of debt paid off by the people belonging to each of the 3 sub-groups. We were completely taken aback when we saw the results: Those of you who regularly use ReadyForZero paid down twice as much debt over the 18 week period as those who rarely use the product and almost 1.5 x as much debt as occasional users!
Of course, we know that your debt doesn’t automagically get reduced simply by linking your accounts to ReadyForZero and checking them often enough. But, just as keeping track of calories in a food journal helps people understand their intake and lose weight faster, using ReadyForZero can help people gain a much better understanding of their debt and pay it off faster. It’s safe to say that this is one case where ‘using’ is a good thing for you; the more frequent, the better!
So tell us, how often are you using ReadyForZero and how has it helped you change your debt profile?