Rent to own, payday loans and high-interest credit cards are likely not your reality. For a sizable portion of your employee population, however, they are. Check your reality in these financial situations and see which choices you would make.

1. REALITY CHECK
Understanding the need for employer-based
financial wellness in the workplace.

2. Nearly half of Americans would have to borrow money
or sell something they own to pay for a $400
emergency.1
Thirty percent have credit scores under
601,2
leaving them with limited purchasing options.
Check your reality in these financial situations and see
which of the limited choices you would make.
1 http://www.federalreserve.gov/econresdata/2014-report-economic-well-being-us-households-201505.pdf
2 http://blog.credit.com/2016/02/how-many-americans-have-bad-credit-136868/

3. Income: $45,000Single Parent Age: 32
Situation
• Your three kids need a laptop for
accessing homework.
• They must have one in time for
the new school year.
• It's going to cost at least $300, but don’t forget all
the other school supplies on their lists.

4. What do you do?
1. Use a payday loan: At a cost of $17.50 per $100, a $300
payday loan could cost $105 for a total amount of $405 that
needs to be repaid in one month.*
2. Buy a used laptop: It may not come with up-to-date or
compatible software. Buying new software can cost as much
as the laptop.
3. Ask your parents for help: They’re on a fixed income.
Income: $45,000Single Parent Age: 32
*15-day terms with one rollover. For more information: http://www.paydayloaninfo.org/pdfs/PDLwebsite_cost_comparison_chart.pdf

5. Income: $65,000Single-Income Family Age: 45
Situation
• You and your spouse have been fixing up
your old home as you can afford it.
• Last year you chose a real vacation over
new plumbing.
• This year, before the new plumbing project,
your TV stopped working (right in the middle
of your favorite show).

6. Income: $65,000Single-Income Family Age: 45
What do you do?
1. Dig out your radio: Tune in until holiday sales
bring the cost down to bargain levels.
2. Use your emergency credit card with a 23%
interest rate: It’s been nice not having credit card debt,
but you’re only halfway through your favorite show.
3. Dip into your 401(k): It can be a challenge to pay a
401(k) loan off and catch up for missing contributions plus
the tax penalty if it's not paid off in time.

7. Income: $55,000Empty Nester Age: 52
Situation
• Your washing machine is leaking water again.
• The last time you had it repaired the bill came
to more than $100 and the fix-it gal told you it
was on its last legs.
• The new one you want is about $1,000, but
that’s a lot of money, more than you have.

8. Income: $55,000Empty Nester Age: 52
What do you do?
1. Use your nearly maxed credit card: You’ll need to
call for a credit limit increase.
2. Visit the rent-to-own store: By the final payoff
you could spend up to almost $1500 on interest
and fees.*
3. Hit the local laundromat: Start saving those
quarters until things get better.
*Source: www.aarons.com/p-1100-22-cuft-french-door-refrigerator-in-stainless-steel.aspx

9. Every day
your employees
are faced with
difficult financial
choices.
PayCheck Direct®
makes those
choices easier.
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