The Department of Education reports that the typical repayment period for borrowers with between $20,000 and $40,000 in federal student loans is 20 years, the worst being with higher interest rates shackling people to ever lengthening repayment periods. The average monthly payment for a student loan debt holder is $393, according to the Federal Reserve.
In order to reel in the debt shackled years for tens of millions of young adults and produce more years of bountiful wealth, Ryze is working hard to expand our offerings to allow our users like you to earn rewards on the things you spend money on everyday.
This way, you can use Ryze to take a large chunk of the insidious interest accrual out of the picture and start to build wealth. This is a long-term game, and we want you to pay down your student debt at least 2 years faster than without Ryze. Let me show you how.
Meet Ryzarito Ron
Ryzarito Ron has $37,000 in student debt as a recent graduate, the average in the US. His average interest rate on his loans is 5%. His monthly payment is $393. He’ll be debt-free in 120 months, exactly ten years if he pays on time every month. He’ll end up paying $10,160 in interest alone over the standard repayment life of his loans.
Now let’s say Ron has been using Ryze and is earning $100 in rewards each and every month; a proud and true Ryzarito. If he redeems that cash directly to his student loans each month, he will finish paying off his loans 32 months sooner. That’s almost 3 whole years of relief from the stress of student debt payments! All told, Ron will save $3,000 on interest expenses alone.
With Ron being free of his $393 monthly debt payment and continuing to earn $100 a month in rewards, he can now save and invest. In the 32 months of being debt free he has gained by making extra payments with Ryze, he will accumulate a whopping $15,776 to his investment accounts or saving accounts. That’s enough for the down payment on a starter home, enough for a modest new car, or plenty enough to take a few amazing trips around the world. What a weight to have lifted.
Our Rewards Today
We are proud of our current marketplace of online rewards – which we are ever expanding, but we know you also want to see rewards from local merchants in all categories. Not just the McDonald’s, but the gas station next to it. Not just your grocery store, but also your favorite local restaurant and bar. This will be a key focus for us on our mission to build a stronger economy from the bottom up, and we are working hard to make it a reality soon.
Some of the rewards on our platform are heavy hitters – big purchases by the customers earning big rewards. Some are small bits – a few bucks in cashback here or there on more frequent purchases. Paired together, these are a potent one-two punch of small jabs and big right hooks that combine to help you knock out your student loans.
To show you the potential impact Ryze can have on your spending today, let me walk you through a detailed breakdown. For this, I’ll be using a snapshot of average consumer annual spending provided by the US Bureau of Labor Statistics. You can find the full table below.
Breaking It Down
Breaking it down into specific spending categories, we’ll be able to see the impact Ryze will have. For these examples, we’ll be realistic and estimate you’ll be able to spend 50% of your expenditures in each of the categories through Ryze. This also isn’t an exhaustive list as we won’t touch on every category; only the ones we have live today or will have live in the near future.
Let’s take a look category by category at what your potential rewards could look like.
Food At Home: $111
Ryze offers: Hello Fresh, Green Chef, Perky Jerky, Boxed.com, and many more to come.
On average, our rewards here tend to be around 5%. By spending half of your total groceries and food at home spending at participating Ryze merchants, you’ll earn $111 cashback in just one year.
Food Away From Home: $259
Ryze offers: We’re currently working on some very big things to enable restaurants, bars, spas, and local businesses of all types across the United States to use Ryze to seamlessly offer you rewards and gain your loyalty. It’s been a long time coming and we’ll be making some more announcements on this front soon, but for the sake of this example, let’s carry on with the impact this will have once live.
On average here, we estimate rewards to be about 15%. By spending half of your out of home food budget at participating Ryze restaurants each year, you’ll earn $259 in cashback. If you’re a big foodie, this could be significantly higher for you and you could earn much more back in rewards. If that is you, consider checking out our merchant ambassador program.
Alcoholic Beverages: $29
Ryze offers: Same situation as above. This feature is in the works and launching soon.
By spending half of your alcoholic beverages budget at participating Ryze merchants to earn 10% cash back, you’ll earn back $29.
Household Supplies, Furnishings, & Equipment: $150
Ryze offers: GDF Studio, Modern Bathroom, Brentwood Home, Puffy Mattress, DreamCloud, Nectar Sleep, Cost Plus World Market, Overstock, Saatchi Art, and many more to come.
By spending half of your home goods expenses at participating Ryze merchants, or $2,147 each year, you’ll earn back $150 when cashing in on an average 7% reward.
Other Lodging: $21
Ryze offers: Reservations.com, Hotels.com, VRBO, and many more to come.
In a year, you’ll earn $21 by spending 50% of your lodging spending through Ryze.
Utilities, Fuels, Other Public Services: $101
Ryze offers: AT&T, Verizon, and many more to come.
By spending half of your cell phone, internet, and other similar expenses at participating Ryze merchants, you’ll earn back $101 a year. That’s on $2,024 of spending with a 5% reward. Gosh, internet and cell phones are expensive.
Apparel and Services: $93
Ryze offers: Adidas Outdoor, American Eagle, Brooks Brothers, Columbia, Express, Forever 21, Patagonia, among many others currently in our app and of course many more to come as well.
By spending half of your clothing budget at participating Ryze merchants, you’ll earn $93 in rewards. That’s with an average 10% reward on $930 of spending over the course of a year.
Other Vehicle Expenses: $71
Ryze offers: Advance Auto Parts, and more offers are in the works.
By spending half of your vehicle expenses on parts like windshield wipers, tires, and cleaning supplies at participating Ryze merchants, you’ll earn $71 in rewards with an average 5% cashback rate.
Gasoline, Fuels, and Motor Oil: $52
Ryze offers: We are currently building partnerships to add several gas stations to our platform. Stay tuned for more on this in 2021.
Once live, you can earn $52 back each year here. Broken down, that’s an average 5% reward on $1,054 of spending.
Entertainment & Travel: $80
Ryze offers: Ticketliquidator, Contiki, StubHub, Kiwi.com.
By spending half of your entertainment and travel at participating Ryze merchants, or $1,613 at a 5% cash back, you’ll make back $80 in rewards.
Miscellaneous Stuff: $70
Ryze offers: Acer, Sonos, Bose, Canon, Dell, Samsung, Vitamin World, Oru Kayak, and many, many more on the app!
By spending half of your budget for things like computers, water bottles, and outdoor gear at participating Ryze merchants, you’ll earn $70. That’s an average 8% reward on a total of $880 of spending.
Ryze offers: Campus Book Rental, Babbel, Autodesk, Varsity Tutors, and Magoosh with more to come.
By spending 50% of your education spending at participating Ryze merchants, you’ll make back $35 each year. That’s an average 5% reward on $704 of spending. And if you’re currently a student and have to rent books, this can be significantly more for you.
Grand Total: $1072 In Free Money
All together, the reward potential on these examples comes to $1072 a year in cashback. And that’s just the potential today and in the near future on just half of your annual spending. We are aggressively building the technology and relationships to add many more rewards to our platform in the coming months to not only cover more categories, but also offer a much richer variety of merchants within each of the categories.
When we get asked what our goal is for how many rewards we’d like to have in our app our answer is always simple: more.
By always chasing more, our goal is to have our average user earning $1200 a year in cashback. We’re close, and when we get there, we want millions like you to be just like Ryzarito Ron mentioned earlier; earning rewards regularly, paying down debt faster, building wealth sooner, and living your life the way you want to do it while all these rewards are earned seamlessly in the background.
If you’d like to help in our mission, check out our Merchant Ambassador Program as a way to get more merchants on Ryze in your hometown and earn some extra cash yourself. And as always, if you have specific requests for brands you’d like to see on Ryze, shoot us a chat in the app anytime.
In closing, I want to encourage you to be like Ryzarito Ron. Spend through Ryze. Earn cashback. And get yourself on the road to less financial stress and more financial freedom.
More to come. Let’s Ryze.