Debt shouldn’t stand in the way of the life you’ve always wanted, but it’s an unfortunate reality for many people worldwide, especially in the current economy.
Did you know you can harness the power of online crowdfunding to overcome personal debt?
Whether you’re interested in raising capital in exchange for a loan through peer-to-peer lending or debt-based crowdfunding, or you want to get rid of your debt with the support of friends and family, there are many crowdfunding platforms out there that can meet your needs.
To help guide you to a debt-free life, I’ve compiled a list of crowdfunding platforms that you can use to raise capital online or rally the support of your community to reduce debt.
But first, I wanted to mention a powerful resource that might make a huge difference for you and your campaign.
My book, Crowdfunding Personal Expenses, is available with a free trial of Audible right now. Get the free audio book with Audible’s 30-day Free Trial.
It’s based on my years of experience and research in the world of crowdfunding for personal expenses, and in it, I share everything I’ve learned about putting together a strong campaign to help you beat debt.
I hope you’ll check it out because it could be the only thing standing in between you and freedom from debt!
Now, let’s take a look at the top 7 debt crowdfunding sites.
1. Prosper
Prosper uses peer-to-peer (P2P) lending to help individuals consolidate their debt, especially credit card debt.
Through peer-to-peer lending platforms like Prosper, individuals can secure loans from other individuals in order to cover debt.
Prosper claims to offer lower interest rates than traditional lending companies and does not charge pre-payment penalties. They also allow for flexible payments, so you can choose how much your monthly payments will be.
2. Funding Circle
Funding Circle is a P2P lending platform that specializes in helping businesses secure debt consolidation loans from individual investors.
At the time of writing, Funding Circle has helped 130K businesses in 700 industries obtain a total of $19.4 billion in P2P loans, allowing them to overcome debt and grow to their fullest potential.
3. Upstart
If you’re struggling to secure a reasonably-priced traditional loan because you lack credit history, Upstart might be able to help!
This P2P lending platform doesn’t need your credit score. Instead, they use information about schools you attended, your area of study, academic performance, and employment history to calculate the loan you qualify for.
Upstart can provide low fixed-rate loans for personal debt consolidation at a lower rate than most traditional institutions.
4. GoFundMe
GoFundMe uses traditional rewards-based crowdfunding rather than P2P lending, but it’s one of the most popular crowdfunding platforms for personal and nonprofit expenses.
GoFundMe campaigners can set up a page to tell their story and explain why they need funds. Then they can share their page with members of their community and request funds to help pay off their debt.
GoFundMe is a massively popular crowdfunding platform with over 120 million users, so it’s no wonder many individuals turn to the site to consolidate their debt.
If you decide to set up a campaign on GoFundMe, I highly recommend you check out my FREE GoFundMe course, which will help you navigate the platform, promote your campaign, and most importantly, raise more!
5. Indiegogo
Indiegogo is perhaps best known as site that helps independent artists and tech designers raise money for their projects, but it also has a sizeable personal causes category.
Like GoFundMe, Indiegogo uses a traditional rewards-based crowdfunding model.
It also permits flexible funding, so even if you don’t meet your funding goal, you get to keep everything you raise.
6. SoFi
SoFi (Social Finance, Inc.) is a versatile platform that helps users secure loans for a variety of purposes, including personal debt and student loans.
SoFi promises low monthly payments, unemployment protection, and personalized loan options.
They can also provide same-day funding, meaning you might receive your funds as soon as your loan is approved.
7. Rally.org
Rally.org is a traditional crowdfunding website for nonprofits and personal causes, and you can use it to consolidate your debt!
Through Rally.org, you can set up your own webpage for your fundraiser and start gathering funds from your community.
It’s free to create a page on Rally.org, but they do charge a 5% fee on funds raised as well as credit card transaction fees.
Conclusion
No matter what kind of debt you’re dealing with, there’s a crowdfunding platform out there that can help you get it out of the way.
Take your time to choose one that suits your needs. Once you’ve raised some funds or obtained a loan, you’ll be well on your way to seeing all your debt melt away.
Of course, if you decide to go with a traditional crowdfunding platform, there’s a lot more to success than just setting up a page.
You have to really know how to sell your story.
That’s why I want to recommend you check out my GoFundMe Cash Machine course, which is full of resources to fast-track raises for personal causes.
Obviously, it’s specifically geared toward GoFundMe users, but almost anyone who wants to use crowdfunding for personal or nonprofit expenses can get a lot of mileage out of it.
If you give the course a try, you’ll also get access to my Pro Fundraising Email Templates and Complete Fundraising Checklist, which will make setting up and promoting your campaign a piece of cake.
Good luck with your campaign, and remember: CrowdCrux is happy to help you every step of the way!
