This week we have expanded our ability to support employee financial wellbeing with our latest product: Advance.
The reality for many people is that having to wait until payday can sometimes mean falling back on high-cost debt like a payday loan or overdraft. Advance helps employees avoid this situation by enabling them to draw down what they have earned during their pay cycle.
In our research, The Employer’s Guide to Financial Wellbeing, we found that 34% of people are regularly running out of money between payday. This financial pressure can force a reliance on debt to make it through to the end of the month or to deal with financial emergencies. A survey by OnePoll found that the average adult uses a credit card or overdraft to get through to payday four months a year. 10% said this is the case every month.
How Advance helps
By giving increased control over pay frequency we can make it easier to budget and reduce a dependency on expensive, short-term debt. For example:
- Dealing with emergencies: For the 17 million people with less than £100 in savings (Money Advice Service), something as commonplace as a car repair can be a serious financial challenge. Access to earned pay before payday provides a means to manage this without relying on debt.
- Controlling pay frequency: Falling back on expensive credit increases by 18% (source) when there is less alignment between the timing of when pay comes in and bills go out. Advance combats this by giving more flexibility and control over their pay cycle – people can receive their salary when they need it.
Find out more about Advance here or in this video.