A number of Tennessee residents are battling with debt, whether it be from medical bills, credit card balances or student loans. Understanding the impact that this debt is having on their workers, a number of companies around the United States are offering to help pay off employee debt.
There are a number of different approaches that these companies are taking, ranging from offering discounts on medical debt to offering interest-free loans to pay off debt. The loans are then repaid through payroll deduction. Some employers are offering their employees payday advances or emergency loans to cover expenses. The idea behind these loans is to help employees avoid visiting institutions that offer payday loans as a business as these can lead a person into a continual spiral of debt an eventual Chapter 7 bankruptcy.
Many employers realize that it is in their best interests to help their employees deal with debt. It is estimated that on an annual basis, businesses in the United States may lose up to $250 billion a year as a result of lost productivity and increased absenteeism associated with their employees’ stress over debt. Proof of this is can be seen in a 2017 poll. In the survey, more than 1,600 full-time employees stated that they felt stressed about their finances.
The research shows that it is not just lower paid workers who are concerned about debt. During the government shutdown that ended in January 25, 2015, even people with higher salaries were having trouble covering their basic needs.
When debts start to escalate, bankruptcy may be the best solution. A bankruptcy attorney could explain what a client could expect during the bankruptcy process.