We can’t neglect the fact that debt is one of the pressing problems in the country, especially in today’s economy. Current statistics revealed that over 16 million Britons have less than £100 in savings. This data means that 40 percent of most working-age groups do not have safety nets to compensate unforeseen circumstances financially.
In the phase of financial hurdles, 23 percent of the working-age groups either revolve their credit cards or tend to depend on short-term, yet high-risk loans. If one has a poor credit score, their only option is more likely high-risk payday loans.
This concerns most finance experts since it will only lead people to further overdrafts or fuel the struggles of financially impaired individuals.
Looking more into the short-term credit industry, a singular borrower would lend fund that equates to 6.8 days of its monthly wage. Needless to say, if an individual is persuaded to save a week worth of its salary can, therefore, compensate the amount intended to borrow from the lessor.
Finance experts from FairQuid details that every individual applying for a payday loan has an average of 48 months stay with his/her employer. Therefore, there is a significant opportunity to maximize this relationship between the employer and the employee that can help end payday loans.
Most suggest that if employers offer alternatives or support on financial matters can make a huge difference. Imagine encountering financial issues and able to seek assistance from your company? Most likely, an employee’s state of productibility remains as stressfree, and other psychological factors are eliminated, making such issues a walk in the park.
However, there is hesitation among employers in offering such assistance or referring lending institutions as most companies do not tolerate borrowing. As per most employers, establishing a fair and robust credit score is more suggestible than leading them loan sharks.
The importance of saving remains highly suggested among working-age groups. One should Apply a significant amount of dedication to budget planning to create a considerable amount of security in times of financial hurdles.