The truth of the matter is, almost all American adults have some form of debt. And unfortunately, a large percentage of them struggle to repay it on time.
What are some strategies often used to help pay down debt?
There are 2 main strategies that financial advisers often recommend to make a dent in debt payments:
- Debt Stacking: Making the minimum payment on all debts, and then putting extra funds into the debt with the highest interest.
- Debt Snowballing: Making the minimum payment on all debts, and then focusing on completely paying off the debt with the lowest balance.
Noticeably, the key to both strategies is to have enough money in the bank to make all the minimum payments, and then to put additional funds into at least one debt. Yet for most American workers, that is simply not possible. Many workers live paycheck to paycheck, lack savings, and fail to meet even the minimum payment requirements.
How can I support my employees in making a dent in their expensive debts?
Employers can help by offering an alternative to Debt Stacking or Debt Snowballing – one that is feasible and responsible for employees. This is where Kashable can make the difference. Kashable is an employee financial wellness benefit that provides access to affordable credit that can be used to pay off high-interest debts. In fact, over 40% of all Kashable borrowers use our loans for exactly this purpose!
Kashable combines employment data into the underwriting process, so we approve loans for employees at rates and terms that are better than most other alternatives. We call it Socially Responsible Credit™. And it means that we:
- Allow employees to take only one loan at a time, ensuring they do not overload their plates
- Typically lend 5-10% of any one take-home paycheck, leaving enough funds on the table for employees to continue to make ends meet
- Lend at affordable interest rates
- Offer automatic repayment through payroll, so that borrowers are always on time with their payments and do not have to worry about their debts snowballing
- Offer the Kashable Program at no cost to you, the employer*.
Sound like something your employees could use? Learn more about the Kashable offering when you Book a Demo.
*For employers with 500+ benefit eligible employees.