If you’ve ever had to live paycheck-to-paycheck, where you’ve been challenged to manage all of your financial obligations between pay dates, and every dollar you earn is designated for payment of some bill (many of which are already overdue), you know how stressful this can be. And it can be even harder to dig out, especially if you take a payday loan.
When an employee has instant access to earned wages (money they have already earned) through a daily pay benefit solution, it helps to relieve this type of financial stress. Workers can access money as bills become due to meet their financial obligations and manage unexpected expenses, without having to add the additional stress of overdraft fees, late charges or payday loan fees and interest. Additionally, the transparency employees have into their accrued earnings allows them to make more informed decisions when it comes to earnings and their spending. For example, an employee may want to pick up an additional shift to meet their financial obligations and lifestyle choices, like having to buy a birthday gift for a family member.
According to Forbes, 78% of all American workers live this scenario every day and the toll that this takes on their mental health and productivity in the workplace is palpable. DailyPay recently conducted a survey of our client’s employee users to find out how access to DailyPay helps them, and what expenses they typically pay using their transferred earnings. Here are the results of that survey:
They say a picture is worth 1,000 words. In this case, this video might just be worth 10,000 words. To understand how immediate access to earned wages helps employees, watch this video from our partner, DialAmerica, featuring real-life stories from several employees who share how having early access to their pay gave them greater control over their financial lives.
For more recent news about how daily pay benefits are starting to win and killing the payday loan industry, please enjoy these articles:
- The Wait for Payday Doesn’t Have to Be So Long
- Federal Reserve announces plan to develop a new round-the-clock real-time payment and settlement service to support faster payments
- ‘Early Wage’ Apps Aim to Disrupt Payday Loans, Two-Week Cycle
- Why Providing a Daily Pay Benefit Leads to Financial Wellness
- New Pay Trends: How Today's Workforce Is Reshaping Payroll