By Scrapabill Team
20 July 2021
How Scrapabill Can Help African People with Their Financial Problems?
Global economic recessions affect every community in the world. Developing nations find it even harder to cope with such financial challenges. It becomes a survival challenge for many to stay afloat in such circumstances. People look for alternative credit solutions. In reality, debt financing becomes unavailable to many as their income levels deflate and credit scores take a dip. Scrapabill is an idea to offer alternative credit to people globally.
Financial Problems in African and Developing Nations
From financial literacy to the lack of financial resources, there are several challenges that people in Africa and other developing nations face. Government entities and commercial banks offer assistance but that is hardly sufficient. Let us take a glance at the top financial challenges faced by these communities and see how Scrapabill can help them overcome these challenges.
Financial literacy does not mean a post-graduate degree in finance. It means to develop the understanding of basic financial concepts like credit score, interest rates, budgeting, savings, and investment basics at least. African and other developing communities fall behind the financial literacy. It hinders their financial progress in several ways.
These communities earn a low income as compared to other developed communities. It means people living in developing countries will always fall behind their financial needs. Their formal and informal earnings resources are limited.
High Unemployment Rate
The high unemployment rate is one of the biggest reasons for low-income levels in these communities. These communities struggle with finding formal and informal earning methods.
Expensive Credit Facilities
As a result of low earnings, these communities cannot develop credit scores. Thus, commercial financing becomes expensive. Commercial banks and creditors charge high interest rates as compensation for risky debt financing.
Lack of Alternative Financing
One way of overcoming financial challenges is through alternative financing options. However, we can see visibly low participation of community-level crowdfunding and alternative financial support in African communities.
Struggle with Paying Bills
All of these financial challenges for African people mean they fall behind the comfort levels at any given time. They keep paying for high-interest rate debts. Yet, they find it difficult to fund their necessities such as paying for bills on time. Obtaining formal financial services is a global challenge. The challenge becomes sterner in African communities and developing nations for various reasons. Such financial problems escalate quickly in economic recessions such as the current one due to COVID-19. Financially struggling people turn towards debt financing. However, debt financing is seldom available to everyone or comes at a high cost of borrowing. Either way, it results in an unending circle of debt repayments one after another.
How Scrapabill can Help African People and Other Developing Nations?
We introduced Scrapabill with an idea of financing solutions to the challenges discussed earlier. One of the most common hurdles for many people is the lack of alternative financial resources. Scrapabill offers an effective and low-cost financial model that works at every level. It is a digital financial service, hence accessible from anywhere in the world. African communities can take advantage of easy access to our global platform.
Paying Bills through Scrapabill
All you have to do is to sign up with Scrapabill. You'll create a profile and post an application to receive cash support. You can spread the word by asking your friends and family to join the cause. Every participant can contribute towards bill payment with a minimum of $20. You can keep the post until your bill fully gets “Scrapped.” With Scrapabill, you do not need to run after commercial loans with a mind-boggling documentation process. You'll be spared the high interest rate and servicing costs as well.
Growing your Network
At Scrapabill, you follow a community of sincerely connected people that are interested in helping each other financially. Unlike other social networks, Scrapabill lets you follow and support bills. You follow and support others with a minimum contribution of only $20. In return, you get financial support for paying bills when in need.
Scrapabill can help African communities as an alternative financing solution. As it’s a fully digital financial network, people can access it easily. Paying bills and supporting others has never been easier than with Scrapabill.
To register and create your account on Scrapabill, click Here.