Connect with us
Apply Now

Executive Voice

How Americans Can Say Goodbye to Expensive Payday Loans Forever

A Pew Charitable Trusts studyin 2015 found that nearly 12 million Americans rely on payday loans. Each year, they pay about $7 billion in loan fees and interest. Altogether, the annual percentage rate (APR) people end up paying on payday loans varies between 300% and 500%.

Based on this study, it is evident that though they provide the borrowers with short-term relief, payday loans are financially catastrophic in the long run. By comparison, APRs on credit cards range from 15% to 30% and personal loans come with an interest rate of 10% to 25%.

Therefore, we can assume that American workers taking out payday loans have exhausted all other options including credit cards, as payday loans come with a significantly higher APR than other options.

Americansgo to payday lenders when they dont have any alternative avenues for financial relief.. When going in for a payday loan, they usually have a certain number of hours that they have worked during the new pay cycle. They could easily ease the financial burden they are facing if only they could access their earnings before payday, without incurring any financial penalty.

With Clair, a New York-based fintech, employees have the option to access their earnings without any costs to them or their employers. Clair works through integrations with workforce management solutions where it records hours worked for a business’ employees. Employees get a Clair Debit Mastercard that they can use at any time to access the money theyve already worked for, before payday.

Employers can join Clair without paying anything and offer this service to their entire workforce. Not only does this help existing employees, but it also acts as an employee recruitment tool, incentivizing the best and the brightest to work at Clair-enabled businesses in the midst of the current labor shortage. This cost-free alternative to payday loans provides employees with a financial cushion to put their minds at ease.

Employees are able to do their jobs better and more efficiently when they don’t have to worry about not having enough cash to make it until their next paycheck. This improves their overall performance as without the stress, they are able to better focus on their jobs.

The way Clair’s business model works is that instead of charging employees or employers, Clair gets paid a portion of the revenue that flows through Clair Debit Mastercards. This practically ensures that there is no downside for employers to extend this service to their employees.

Continue Reading

Copyright © 2022 Disrupt ™ Magazine is a Minority Owned Privately Held Company - Disrupt ™ was founder by Puerto Rican serial entrepreneur and philanthropist Tony Delgado who is on a mission to transform Latin America using the power of education and entrepreneurship.

Disrupt ™ Magazine
151 Calle San Francisco
Suite 200
San Juan, Puerto Rico, 00901

Opinions expressed by Disrupt Contributors are their own. Disrupt Magazine invites voices from many diverse walks of life to share their perspectives on our contributor platform. We are big believers in freedom of speech and while we do enforce our community guidelines, we do not actively censor stories on our platform because we want to give our contributors the freedom to express their opinions. Articles are not commissioned by our editorial team, and opinions expressed by our community contributors do not reflect the opinions of Disrupt or its employees.
We are committed to fighting the spread of misinformation online so if you feel an article on our platform goes against our community guidelines or contains false information, we do encourage you to report it. We need your help to fight the spread of misinformation. For more information please visit our Contributor Guidelines available here.

Disrupt ™ is the voice of latino entrepreneurs around the world. We are part of a movement to increase diversity in the technology industry and we are focused on using entrepreneurship to grow new economies in underserved communities both here in Puerto Rico and throughout Latin America. We enable millennials to become what they want to become in life by learning new skills and leveraging the power of the digital economy. We are living proof that all you need to succeed in this new economy is a landing page and a dream. Disrupt tells the stories of the world top entrepreneurs, developers, creators, and digital marketers and help empower them to teach others the skills they used to grow their careers, chase their passions and create financial freedom for themselves, their families, and their lives, all while living out their true purpose. We recognize the fact that most young people are opting to skip college in exchange for entrepreneurship and real-life experience. Disrupt Magazine was designed to give the world a taste of that.