Helping Consumers Commit to Financial Health

Financial wellness

For more and more consumers, the hopes of achieving financial security have become increasingly distant as the pressures of health care expenses, education costs, retirement planning and other burdens take their toll. The stress of these challenges affects both their physical and mental well-being, as well as their personal relationships, work productivity and most every other aspect of life. Nearly 78% of Americans are living paycheck to paycheck, according to a CareerBuilder report, too often relying on high-cost, predatory payday loans to get them through.

Would you accept a loan for a car if the APR was 400%? What would you think about 700%? These rates are staggering. Often times, people who use these services have nowhere else to turn because they need cash immediately and/or their credit scores are not high enough to qualify them for a loan. Many payday loan borrowers “roll over” the loan multiple times. When they do that for just three months, the amount due can be overwhelming. It’s what we call a “debt trap” or “debt spiral.”