THE VOLUNTARY BENEFIT THAT FILLS THE CREDIT GAP

When you recommend Purchasing Power as a voluntary benefit to your clients, you aren’t just assisting them in rounding out their employee benefits program offerings. You are also supporting middle-class and financially at-risk members of their employee population with a benefit that fills the credit gap.

March is designated Credit Education Month to raise awareness of credit-related issues and resources, including the need to manage finances more efficiently and effectively. Many middle-class employees as well as financially at-risk workers are stretching their paycheck to cover monthly expenses; they have little emergency savings and a maxed out credit card. So they generally don’t have many options when they need to make a major purchase. Therefore, they tend to resort to rent-to-own, payday loans or installment loans. These options can drag those consumers into an ever-deeper cycle of debt.

The impact of typical financial options are:

  • Subprime/in-store credit card – high interest rates (averaging over 20 percent); potential late fees and ballooning interest; and open-ended payment terms that can cause the purchase price to spiral.
  • Payday loan – finance charges on a typical payday loan equate to 400% APR.
  • Rent-to-own – annual interest rates equate to 100%.
  • Retirement savings/withdrawal – jeopardizes long-term savings; can incur penalties, taxes and high interest on repayment.

With Purchasing Power, the employees’ job is their credit. Our employee purchase program allows workers to access products and services that are often out of reach because of their credit or that they would otherwise have to pay a significantly higher cost due to finance fees.

Purchasing Power offers all-inclusive pricing that covers the actual product, value-added features such as extended warranties and accessories, shipping and handling fees and any applicable taxes. Employees will know the cost up front. The automated payment program helps ensure they won’t miss a payment.

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