Should I be careful about innovative ‘gamified crowdfunding’ campaigns?

In a world where student loan debt has become a burden for millions, the allure of gamified crowdfunding platforms such as Givling offers a glimmer of hope. Promising a chance to win a coveted $50,000 payout towards student loans, these apps attract individuals hoping for financial relief. However, while the concept of coming together as a community to crowdfund debt sounds appealing, users should exercise caution and be aware of the risks involved.

Givling positions itself as a trivia game, where players can climb the ranks in a queue and earn queue points through various means, including watching ads and making purchases from its paid sponsors. The app’s founder, Lizbeth Pratt, touts it as a form of altruistic crowdfunding, where players supposedly pay off someone else’s loan rather than seeking personal financial gain. However, the reality seems to differ significantly.

Users have reported spending hundreds, even thousands of dollars on the app in an attempt to rise in the queue and secure the $50,000 payout. The chances of winning appear to be skewed towards those who have made substantial investments in the game. Additionally, the legality of the app has come into question, with at least one state regulator finding it in violation of gambling laws.

The benefits of gamified crowdfunding include creating a sense of community among users, offering a platform for borrowers to share their experiences and frustrations. For some fortunate players, winning the payout can be life-changing, providing much-needed financial relief and an opportunity to achieve long-term goals like homeownership or paying off a mortgage.

However, the risks cannot be overlooked. Users may find themselves trapped in a cycle o

f spending money on unnecessary purchases to earn queue points, which can take a toll on their financial well-being. Moreover, the tax implications of the $50,000 payout are uncertain, and winners might face unexpected tax liabilities.

In conclusion, gamified crowdfunding campaigns like Givling can be a double-edged sword. While they provide a glimpse of hope for borrowers struggling with student loan debt, users should exercise caution and consider the potential financial risks involved. It is crucial to evaluate personal financial situations carefully and avoid falling into an obsessive cycle of spending in pursuit of the elusive payout. Instead of solely relying on these platforms, borrowers should explore more reliable and traditional avenues for managing their student debt. Remember, financial relief should never come at the cost of financial stability.