Neighborhood Trust Financial Partners’ Post

Is credit card debt among your workers hurting your organization? Inflation or corporate greed or modern money theory or a host of other maladies are harming workers, businesses, and organizations, depending on whom you ask. But credit card debt? Is that something we as smart employers must care about now, too? Short answer: yes. Credit card debt is rising. It’s a tip of the iceberg thing, a symptom: roughly one in five credit card users are maxed out, per the latest Quarterly Report on Household Debt and Credit from the Federal Reserve Bank of New York. Credit card delinquencies are rising, too. Almost 9% of credit card debt was categorized as delinquent in Q1, 2024. Another symptom: rising numbers of workers struggling paycheck to paycheck, turning to earned wage access apps to make it to payday. In research released this month, the Consumer Financial Protection Bureau estimates that in 2022, 7 million workers received $22 billion through apps that worked with their employers, and 3 million workers received $9.1 billion through direct-to-consumer apps. Workers who use earned wage access took out on average 27 of these loans a year, roughly one loan for every biweekly paycheck. Smart employers recognize the problem, worker cash-flow gaps in what the The Aspen Institute calls a broken system of jobs and benefits, and are exploring our role in bridging the gap. Read more in our latest article, "Is credit card debt among workers hurting your organization?" on Medium in which we share tips for workers paying off credit card debt, informed by our TrustPlus personal finance coaches. The link is in the first comment. #debt #humanresources #smallbusiness #benefits

Brilliant to speak to Ripon about carers and financial support - we know carers face a 'caring penalty' when they leave work, and the benefits system doesn't prevent carers from falling into poverty. We need a new settlement to help people care if they want to - meaning support to take paid leave from work to care, and a benefits system which actually values the work carers do.

Thousands of unpaid carers have been fined due to falling foul of earnings rules in the UK. Some of them also faced prosecution. The Department of Work & Pension (DWP) is recovering the overpayment of carers allowance from their existing benefit or salaries. On this month’s Debt Talk podcast, Ripon Ray (MIMA Cert) explored: ‘Carers & benefit overpayment’, with distinguished guests from a funder and civil society organisations. Rory Ewan, Senior Analyst from Policy in Practice, spoke about the financial and non-financial challenges carers face in the UK. He explained the nature of carers’ role and how they have fallen foul of the criteria for carers allowance. He describes how income received under carers allowance is different from universal credit. Universal credit has a taper system whereas carers lose the whole of carers allowance if they earn a pound above the legal threshold. The DWP then use enforcement action to recover the debt which leaves carers in further poverty and some faced criminal prosecution. Abby Jitendra, Senior Policy Adviser from Joseph Rowntree Foundation (JRF) explained the reality of being a carer. They are mostly women, low-paid and deemed to fall within the vulnerability category. Joseph Rowntree Foundation (JRF) carried out several research into the causes of poverty and carers and they are financially penalised for caring and also marginalised from the labour market leaving them insecure. Abby Jitendra also highlighted the importance of changes in the benefits system to support carers in the long term. Both panel members provided Debt Talk listeners with TOP TIPS to improve the lives of carers in the UK. My next podcast is on: 'Indebted with By Now Pay Later products.’

Great to be on Debt Talk to discuss the issues facing carers in the UK, reforms to carers allowance and what we can do to make the system better.

How Can I Consolidate My Debt for Lower Rates and Relief? Answers: https://lnkd.in/gSFJXkME #DebtRelief #FinancialAdvice #DebtFreeJourney Hey everyone! 👋 I'm reaching out for some advice since I’m really feeling the weight of my debt right now. I’m 29 and juggling a few different debts: I have a personal loan of almost $10k at a hefty 12.65% interest, some credit card debt, and I’m also managing Afterpay. On top of that, I’ve been overpaid by my workplace, so a chunk of my paycheck goes back to them every week. Here’s the breakdown: 💸 **Personal Loan**: Just under $10k at 12.65% p.a. 💳 **Credit Card & Afterpay**: Adding to my stress! 💼 **Workplace Repayment**: Deductions from my paycheck making budgeting tough! With my finances, I bring home about $1.3k every two weeks after workplace repayments. Of that, I’m automatically sending $350 to my personal loan. This doesn’t leave me with much for living expenses, and I often find myself living paycheck to paycheck. It’s incredibly stressful! 😩 To make matters worse, I'm thinking of selling my car since it's nearing the end of its life and I could use the cash. But here's the thing: I know I’ll need ...

#𝟯𝟳. 4 𝗗𝗮𝗻𝗴𝗲𝗿𝗼𝘂𝘀 "𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗔𝗱𝘃𝗶𝗰𝗲" 𝗜 𝗘𝘃𝗲𝗿 𝗛𝗲𝗮𝗿𝗱 𝗧𝗵𝗮𝘁 𝗬𝗼𝘂𝗻𝗴 𝗔𝗱𝘂𝗹𝘁𝘀 𝗦𝗵𝗼𝘂𝗹𝗱 𝗔𝘃𝗼𝗶𝗱 𝗳𝗼𝗿 𝗮 𝗕𝗲𝘁𝘁𝗲𝗿 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗙𝘂𝘁𝘂𝗿𝗲. Adults love giving financial advice - regardless if it's good (but mostly bad). Since I started working, first in the private sector, then the government, and now as self-employed, I heard various differing views about money. Some of them were sincere and helpful. At other times, they are plain disastrous. Here are four of the most dangerous financial advice I have heard. 𝟭. "𝗬𝗼𝘂 𝘀𝗵𝗼𝘂𝗹𝗱 𝘀𝗽𝗲𝗻𝗱 𝘆𝗼𝘂𝗿 𝗳𝗶𝗿𝘀𝘁 𝗽𝗮𝘆𝗰𝗵𝗲𝗰𝗸 𝗶𝗺𝗺𝗲𝗱𝗶𝗮𝘁𝗲𝗹𝘆." I was shocked when I heard this from a co-worker while waiting for our first salary during our first job. He said the advice was from his friend, who meant it was for "good luck." Unfortunately, if you do this while just starting your working life, you're already one foot in the debt cycle. 𝟮. "𝗬𝗼𝘂 𝘀𝗵𝗼𝘂𝗹𝗱 𝘁𝗮𝗸𝗲 𝗮 𝗹𝗼𝗮𝗻 𝘄𝗵𝗶𝗹𝗲 𝘆𝗼𝘂𝗻𝗴, 𝘀𝗼 𝘆𝗼𝘂𝗿 𝗹𝗶𝗺𝗶𝘁 𝘄𝗶𝗹𝗹 𝗶𝗻𝗰𝗿𝗲𝗮𝘀𝗲 𝗳𝗮𝘀𝘁𝗲𝗿 𝗮𝘀 𝘆𝗼𝘂 𝗮𝗴𝗲." This advice is from a teacher colleague who was seriously in debt. She said I should get a loan as early as possible, even if I didn't need it to increase my loan credit limit faster. I soon learned that this is one of the prevailing money principles among teachers which traps them in an endless debt cycle. 𝟯. "𝗬𝗼𝘂 𝘀𝗵𝗼𝘂𝗹𝗱 𝗮𝗹𝘄𝗮𝘆𝘀 𝘂𝘀𝗲 𝘆𝗼𝘂𝗿 𝗦𝗦𝗦/𝗚𝗦𝗜𝗦/𝗣𝗔𝗚-𝗜𝗕𝗜𝗚 𝗹𝗼𝗮𝗻 𝘁𝗼 𝗮𝘃𝗼𝗶𝗱 𝗼𝘁𝗵𝗲𝗿𝘀 𝗳𝗿𝗼𝗺 𝘂𝘀𝗶𝗻𝗴 𝘆𝗼𝘂𝗿 𝗰𝗿𝗲𝗱𝗶𝘁 𝗹𝗶𝗻𝗲. This advice is connected to the second, but the idea stems from a baseless fear that other people can take a loan using your name and credit lines. As a response, they want to be the ones who would benefit from their government contributions by loaning money they don't need and spending it as fast as they can. So don't be surprised to learn that a lot of government employees are only taking home P5,000 for their monthly salary due to an assortment of loans from banks, GSIS, PAG-IBIG, cooperatives, and more. 𝟰. "𝗗𝗼𝗻'𝘁 𝘀𝗮𝘃𝗲 𝗺𝗼𝗻𝗲𝘆 𝗼𝗿 𝗯𝘂𝘆 𝗶𝗻𝘀𝘂𝗿𝗮𝗻𝗰𝗲 𝗯𝗲𝗰𝗮𝘂𝘀𝗲 𝘆𝗼𝘂'𝗿𝗲 𝗷𝘂𝘀𝘁 𝗰𝗮𝗹𝗹𝗶𝗻𝗴 𝗳𝗼𝗿 𝗮𝗻 𝗲𝗺𝗲𝗿𝗴𝗲𝗻𝗰𝘆." The fourth one is plain disastrous and foolish, coming from a place of financial illiteracy. I've heard this more times than I'd like, and their reason is often the same: people who save and get insurance are just preparing for accidents and medical emergencies. The ironic part is the very same people who don't believe in saving money and getting insurance for emergencies are the first ones to ask for help when they encounter an emergency.

My experience living in the United States most of my life is that this is an expensive country to live in. The way the economy works in the United States is it only provides a few months of emergency savings. The jobs generally pay the minimum amount of money to keep you alive. I have gone broke several times in my life and when this happens I cut up and cancel all my credit cards. In my opinion if you are invested in the stock market right now you should get out of it because of very serious speculation going on. Get rid of all credit cards immediately also. This is a financially concerning time similar to 2008. The 2007-2008 Global Financial Crisis. The idea of the Middle Class is somewhat of a fabrication based on my research. Landlords keep the rent at a very high level in the United States so the " so called middle class people" cannot do anything as far as leisure activities. We basically have no life. Politicians lie to people and are only in it for themselves. This is the truth. I have done plenty of research in my life and Professor Emeritus Richard D Wolff will tell things as they are without sugar coating things. He will teach you about De-dollarization which is a real thing that happens because currency loses value over time. Kamala Harris and President Joe Biden have done a horrible job with United States economy otherwise very meticulous and conscientious people with financial expertise wouldn't complain. Donald Trump will be able to fix the economy and regulate taxes so the Middle Class isn't crushed with overwhelming taxes. About debt in the United States: Household debt 77% of American households have some type of debt, with mortgages accounting for 70% of the total. As of the second quarter of 2024, the total debt of American households is $17.796 trillion, with an average of $104,215 per household. Credit card debt 47% of adult credit cardholders carried a balance at some point in 2023, down from 50% in 2020. The leading cause of credit card debt is emergency expenses, with 43% of those carrying debt citing this as the reason. Medical debt A 2022 KFF report found that nearly 9% of U.S. adults owed medical debt, with 11 million having balances greater than $2,000 and 3 million owing more than $10,000. Debt by generation Generation X has the largest credit card balances of all generations, with an average of $8,134. Baby boomers have an average of $6,245, millennials have an average of $5,649, and Generation Z has an average of $2,854.

Debt Matters: Employers are Missing a Key Benefit Need Among Workers: Employers are increasingly seeking to help workers with aspects of their finances beyond healthcare and retirement, like building emergency savings and repaying student debt. But a.. http://dld.bz/j8jun #layoffsandjobreductions #oilandgascompanies

Personal debt is a major issue for Americans, and it’s getting worse. According to the Federal Reserve, American household debt was at $16.9 trillion at the end of 2022, up $2.75 trillion from 2019. As the issue continues to grow, the responsibility of maintaining healthy personal finances falls on employers as well as employees. Employee debt can occur from a number of different sources. Credit card debt is one of the foremost challenges for employees. Student loans and medical debt also pose a significant challenge. The U.S. owes over $1.6 trillion in student loan debt dispersed between around 43 million borrowers, according to data by Forbes. However, the nature of debt means that your employees could be suffering in silence. A recent financial well-being index from TELUS Health found that while 2 in five workers felt overwhelmed by their debt, almost 75% of those surveyed had yet to reach out to their employers for help due to embarrassment. It’s important that employers confront this issue head-on with accessible financial wellness tools. Providing a financial wellness solution increases workplace productivity and signals to your employers that their personal well-being is being cared for. Read More: https://lnkd.in/exYp-6uH #EmployeeBenefits #FinancialWellness #Debt

Collection agencies are third-party, private companies contracted by lenders and creditors to recover funds that are past due. The Fair Debt Collection Practices Act (FDCPA) federally regulates debt collector’s malpractices to protect consumers from abusive, unfair, or deceptive practices. However, often those with debt can feel harassed and intimidated by collectors. While half (47%) of adults with debt due to medical or dental bills say that they or someone in their household has been contacted by a collection agency because of these bills in the past five years, these shares are higher among Black adults (66%), those with lower incomes (55% of those with incomes under $40,000), and women (52%). The impact of debt collection practices on employees can be significant, especially regarding their ability to retain talent within an organization. Here's how it can affect them: 1. **Stress and Distraction**: Employees who are dealing with debt collection issues may experience increased stress and distraction at work. This can affect their productivity, focus, and overall job performance. 2. **Financial Instability**: Employees facing debt collection may also struggle with financial instability, which can lead to absenteeism, tardiness, or even resignations as they seek additional sources of income or attempt to address their financial situation. 3. **Health and Well-being**: The stress associated with debt collection can have adverse effects on employees' mental and physical health, leading to increased healthcare costs and potentially impacting their ability to work effectively. 4. **Morale and Engagement**: Employees who feel harassed or intimidated by debt collectors may experience decreased morale and engagement at work. This can result in a negative work environment and lower levels of employee satisfaction. 5. **Retention Challenges**: Ultimately, the combination of financial stress, distraction, and decreased morale can make it more difficult for organizations to retain talented employees. Employees may seek employment elsewhere in search of a more stable and supportive work environment. To address these challenges, employers can consider implementing financial wellness programs, providing resources for debt management and counseling, and fostering a supportive workplace culture that prioritizes employees' well-being. Additionally, ensuring compliance with regulations such as the FDCPA can help mitigate the negative impact of debt collection practices on employees. Connect with me to explore options before one of the members of your staff fall into becoming a statistic. #EmployeeWellness #FinancialWellness #WorkLifeBalance #EmployeeRetention