What Do You Think About This Idea to Get a Million People Out of Debt?


Dear Steve,

I’m 60k in debt and don’t like the idea of paying for 20+ years.

What are your thoughts on people in debt pooling money together and paying off loans in full?

Example, 1 million people agree to help each other. Each person pays a one-time payment of 150 then continues to pay 50 a month. So a lump of 150 million with 50 million coming every month.

Every person that paid the 150 and 50/month get a random number generated for them, 1 through 1 million. Money pays off each loan of the people involved until the million people are debt-free.

So number 1 still pays 50 a month till the millionth person gets out of debt.



Dear Ryan,

My initial reaction is it sounds like a scheme doomed to fail. Kind of a hint of a lottery or Ponzi scheme feel. I know that’s probably not your intention, that’s just how it makes me feel.

Depending on the debt load of people participating it could take a long time before all the debt gets repaid.

It seems like a $1,900 Chapter 7 Bankruptcy filing where the debt is eliminated in less than 90 days or so is a faster way to deal with unaffordable debt.

From a practical point of view, I can’t even begin to forecast how much it would administratively cost to manage the plan or the costs of compliance, bonding, and/or licensing in all the states that would require that.

I’m not trying to rain on your idea, just be practical based on my experience in the debt world since 1994.

A universal truth is that no good deed goes unpunished so I would expect stiff headwinds if this started to gain momentum.

But then again, what the hell do I know?

I do know that you should not call it debt pooling. Has a bad history.

If you do decide to launch such a program, I would love for you to keepme posted on progress by posting comments below.

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I wish you tons of luck in this effort.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

Damon Day - Pro Debt Coach

Steve Rhode

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