Financially fragile employees – those living from paycheck to paycheck and with little or no savings and credit – can become even more financially strapped when it’s time to make a major purchase (such as electronics, home appliances, furniture and mattresses). Without access to a full line of financial services, these consumers have to consider alternative financing methods in order to acquire routine household items and make emergency repairs or replacements.
The tightening of consumer credit has forced some workers to resort to rent-to-own, payday loans or installment loans. Consumers should be aware of terms of their financing options before jumping head-first into a purchase. For the most part, rent-to-own, payday loans and installment loans are extremely costly options. These options can drag those consumers into an ever-deeper cycle of debt.
Our newest Perspectives discusses these options and compares them to an employee purchase program. With Purchasing Power’s employee purchase program workers won’t face the consequences of missed payments, compounding interest rates and fees, or loss of merchandise like they would with rent-to-own, payday loans or installment loans.
Employee purchase programs provide a cost-effective, financially responsible way to purchase.
Be sure to share this latest Perspectives with your clients and prospective clients. Click here to access.