DALLAS – United Way of Metropolitan Dallas announced a new program designed to provide opportunities for families to access affordable loans, build credit and save their hard-earned money. An employed-based initiative called Financial Wellness @ Work is being introduced to help employees improve their personal finances, reduce stress, and ultimately better their productivity in the office.
According to an employee financial wellness survey distributed by Pricewaterhouse Cooper, LLC, seven out of 10 workers claim that finances are their most common cause of stress, despite a growing economy and low unemployment. Many North Texans turn to payday lenders to take care of unplanned expenses, mainly because they don’t require a credit score for a loan. Texas has one of the highest usage rates of payday loans, and some of the highest interest rates for those loans in the country. Financial Wellness @ Work has been created to offer families a better solution toward financial stability.
“Almost everyone has experienced some type of unexpected financial shock in their lives,” said Greg Mangum, vice president of economic mobility at United Way of Metropolitan Dallas. “Even with a steady paycheck and benefits, those can be tough to handle. We see too many families who have become trapped in payday and car title loans, and it puts immense financial strain on their families.”
Financial Wellness @ Work is fast-tracking access to affordable loans through a partnership with TrueConnect, an employee benefit program that allows employees to take out short-term loans online from an FDIC-insured federal bank without the need for a credit score. Payments are automatically deducted from an employee’s paycheck in small increments over a one-year term. Those payments are reported to credit agencies to help employees establish or improve their credit history.
“Employees with good or great credit already have many options when trouble occurs,” said Doug Farry, vice president of TrueConnect. “Our experience taught us that the employees who need the help most are those with no credit scores or poor credit. They can’t just charge things on their credit cards – because they don’t qualify for credit cards. They need something designed for their unique needs.”
United Way is offering TrueConnect through a partnership with the National Fund for Workforce Solutions and Washington University in St. Louis, as part of its Financial Wellness @ Work program. The TrueConnect program is available to for-profit and non-profit employers with 100 or more employees. Interested employers can reach out to Greg Mangum directly (email@example.com) or to Doug Farry at TrueConnect (firstname.lastname@example.org), for more information.
“We are excited to offer TrueConnect to our own employees and to other Dallas area employers through our Financial Wellness @ Work program,” said Mangum. “People need better options when financial crises occur. It can help reduce the financial strain and stress that can have such a negative effect on hardworking employees across our region.”
Through this partnership and other income initiatives, United Way is committed to leading the charge to improve access to more reasonable and cost-effective alternatives that help people save money for emergencies and build their credit over time to qualify for more affordable loans.
“Financial stability is a key ingredient to a steady, successful life,” said Susan Hoff, Chief Strategy, Impact and Operations Officer, United Way of Metropolitan Dallas. “Together, we give everyone in our community the opportunity to secure a firm foundation for living.”
About United Way of Metropolitan Dallas: United Way of Metropolitan Dallas is a community-based social change organization that puts opportunity in the hands of all North Texans. Working with our determined supporters, we lead the charge to improve education, income and health—the building blocks of opportunity. We invite all change-seekers in our community to Live United to achieve lasting results right here at home. To give, advocate or volunteer, visit www.UnitedWayDallas.org.
About Employee Loan Solutions, Inc: Employee Loan Solutions, Inc. developed the patented TrueConnect Loan program as a voluntary employee benefit to help employees access safe and affordable credit. The TrueConnect Loan is free for employers to offer and requires very little administration. Qualified employees get access to small dollar loans (from $1000 – $3000) that are repaid through automatic payroll deductions. Employees do not need a credit history but can only borrow what they can pay back with 8% of their paycheck to help insure a successful loan repayment. On-time payments are reported to credit bureaus so borrowers can build up their credit scores. For more information about Employee Loan Solutions, please visit www.employeeloansolutions.com or connect with us on Facebook, Twitter and LinkedIn.