Debt Relief Negotiation

Relief Secures $2 Million to Revolutionize Debt Relief

Jason Saltzman, a seasoned entrepreneur, has launched a new venture into the debt consolidation and relief sector. His prior successes include co-founding SeamlessDocs and establishing The Alley, a New York City-based coworking space.

The Birth of Relief

Following a joint venture between Alley and Verizon, Saltzman sought a new challenge. This led to the creation of Relief, co-founded with Bryan Okeke and Ram Barrouet. The startup has recently announced a $2 million funding round led by Collaborative Fund, BFV, Necessary Venture, and The Fund, with participation from angel investors like Justin Kan, Ben Kaplan, Elliot Tabele, and David Galanter.

Addressing a Gap in the Debt Relief Market

Saltzman identified a disparity in the debt relief landscape. While third-party debt collection agencies leverage automation, individuals seeking relief often lack access to similar tools. Relief aims to bridge this gap by offering an app that utilizes machine learning and collective bargaining to lower debt balances.

The app performs calculations for users and directly negotiates with creditors to reduce outstanding amounts – potentially by 50% or more, according to Saltzman – all without charging a fee.

Leveraging Collective Bargaining Power

Similar to the model employed by Justworks, Relief harnesses the collective strength of its user base. This allows the platform to negotiate more favorable terms with creditors, resulting in reduced balances and lower interest rates.

Upon successful negotiation, Relief facilitates a structured payment plan for users to manage their remaining debt.

A Unique Approach to Debt Management

While debt consolidation and loans are common solutions for financial hardship, the ability to negotiate directly on behalf of the user remains uncommon among existing platforms.

Saltzman clarifies that Relief is not designed for simple savings; rather, it presents an alternative pathway for individuals considering bankruptcy.

Revenue Model and Future Growth

Initially, Relief will generate revenue through fees paid by credit issuers for settlement handling, effectively replacing traditional debt collectors. The startup also anticipates revenue from loan issuance and associated interest.

Saltzman envisions exploring additional revenue streams as the user base expands.

Building Trust and Addressing a Widespread Problem

“Trust is the biggest challenge,” Saltzman emphasizes. “We must overcome the stigma associated with debt and gain consumers’ confidence.” He highlights that data indicates approximately one in three Americans are currently behind on their credit card payments, underscoring the urgent need for a reliable solution.

Note: A previous version of this article incorrectly stated that Verizon acquired Alley. This has been corrected.