Offering Paycheck-to-Paycheck Consumers a Better Solution for Meeting Unexpected Expenses

    DES PLAINES, IL, November 23, 2023 /24-7PressRelease/ -- "For the millions of American households living paycheck to paycheck, any significant unexpected expense can be disastrous," states Dave Papeck, senior district manager for online lender GoCredit.me. "And the upcoming holiday season is yet another major contributor to financial instability.

"These families have limited options when unexpected expenses arise," he adds, "and they'd find it difficult to secure a small-dollar loan from a bank or credit union. Unfortunately, more and more of them are turning to credit products to help them get through—with extremely costly consequences."

New study finds many families struggling to cope with expenses

According to a recent report by PYMNTS Intelligence and financial services company LendingClub, "60% of consumers in the United States are still living paycheck to paycheck as of August 2023." PYMNTS is a global leader in data, news and insights on payments and the platforms powering the connected economy.

The study also underscored the lack of savings for many households, finding that an unexpected $500 bill would cause one in four consumers significant financial difficulty.

The holiday season brings increased financial stress

What's more, the report found that seasonal factors—including fluctuating utility bills, tax payments and special events such as holidays—can impact consumers' financial stability. Events and celebrations, along with the holiday spending that accompanies them, are cited as the top fourth-quarter stressor by almost half (47 percent) of consumers.

"We're now in the time of year that causes the highest seasonal financial distress for many Americans," notes Dave. "And some of the strategies consumers use to manage expenses put them in even worse condition."

Managing expenses with costly credit products

According to the PYMNTS report, more than a third of consumers are turning to credit products to manage their finances, with one in five (21 percent) using credit as their top strategy.

Using credit products to cover expenses can negatively impact consumers' financial standing, and the report found that this is happening with 75 percent of consumers choosing this strategy.

"Instead of opting to finance their bills through credit," says Dave, "what these millions of families need is a path that takes them to a more secure financial situation. If they can build savings, they'd be better able to handle the unexpected expenses that can derail a household budget."

It's Simple: Cash Loans + Savings!SM

With the innovative savings and installment loan offered by GoCredit.me, customers get the money they need for immediate expenses while they build savings that provide greater financial stability.

Here's how the loan works:
• Application—after completing and submitting the brief installment loan application, customers can get approved within minutes
• Funding—A portion of the funds can be deposited directly into their bank account the same day, and a portion will be placed into a secure savings account that the customer can monitor through an online portal
• Building—As a customer makes installment payments, their savings build and accrue interest
• Collect—Once the installment loan is paid off in full, the customer receives full access to the funds in the savings account

"Another important benefit of the GoCredit.me savings and installment loan is the automatic reporting of a customer's installment payment history to one of the leading credit bureaus," says Dave. "As a customer pays off their loan, they're building their savings but they're also getting the opportunity to build a positive credit history."

Round-the-clock online convenience backed by attentive customer service

Customers in Illinois, Indiana and Oregon can apply for the GoCredit.me savings and installment loan by visiting the GoCredit.me website or by contacting a customer service representative at 888-599-5077. Illinois customers can also visit any of 12 conveniently located GoCredit.me locations.

The application process is quick and easy, and same-day funding is available. Customers can choose a 12-month installment plan or a more budget-friendly 15-month installment plan.

"As the holidays draw near and financial stress increases, we want consumers to know there's a lending option that's stacked in their favor," Dave concludes. "We're looking forward to helping more households meet the new year with savings that provide security and greater financial stability."

About GoCredit.me

GoCredit.me, Illinois' newest fintech, is headquartered in suburban Chicago. The company gives customers in Illinois, Indiana and Oregon an easy way to build savings and get funded for an installment loan through a quick and simple online application process.

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