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Five signs that employee’ finances need attention
 
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The Federal Reserve Bank of New York’s Center for Microeconomic Data issued its Quarterly Report on Household Debt and Credit, which shows that total household debt increased by $124 billion (0.9%) to $13.67 trillion in the first quarter of 2019. It was the 19th consecutive quarter with an increase, and the total is now $993 billion higher than the previous peak of $12.68 trillion in the third quarter of 2008. The report is based on data from the New York Fed’s Consumer Credit Panel, a nationally representative sample of individual- and household-level debt and credit records drawn from anonymized Equifax credit data.
 
Five signs that employee’ finances need attention

1.) Having to pay late fees or overdraft charges

Frequently getting hit with overdraft fees on a checking account or late fees paying credit card bills means there is a problem. Not only is money being wasted by paying extra fees but the fees are a symptom that cash flow is a concern. This practice accrues costs in two ways: 1. the cost of the fee and 2. the damage to credit scores which can cause higher rates for credit or insurance.

2.) Credit denials

Getting turned down for credit means there is no denying the problem. Lenders will look at a credit report and decide if it’s a worthwhile risk to lend to some individuals. A bank credit denial is a sure sign that a bank is worried it will be paid back.

3.) Missing Payments

Simple enough - Not making the payments can only mean that something is wrong.

4.) Unable to pay for emergency

Emergency- a sudden, urgent, usually unexpected occurrence or occasion requiring immediate action. When medical or car expenses pop up and there is not enough money to pay for them, that’s a sign that finances aren’t very stable.

5.) Cash poor

Always having to use a credit card on small purchases because it is difficult to keep at least $10 or $20 handy can be a sign of relying on credit too much. Of course if the credit cards are paid in full every month then there is no problem.

Money problems are as old as money itself.
Epictetus (55–135 C.E.) said, “Wealth consists not in having great possessions, but in having few wants.”
Who we are and what we do...
Progress Through Business, Inc. and the Center on Business and Poverty are partnerships of businesses, individuals, and non-profits that focus on sustaining and enhancing underserved communities through initiatives, research, writing, networking, and entrepreneurship.
Copyright © 2019 Center on Business and Poverty, All rights reserved.


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