Have you ever wondered what is the value of financial security? Can an amount be actually added to an abstract factor like financial security? In this day and age of people literally loaning themselves money to survive, desperate people, taking cash advance in order to be able to pay bills, financial security does seem worth an awful lot. If you are head of an organization, you might be wondering exactly how much your fiscally protected workers’ worth is to your organization’s bottom line? Is their financial security a factor that improves productivity as much as it improves their life? This abstract question may soon enough have an answer and organizations will be enabled to solve it.

Financial Finesse is an organization dedicated to improving workplace wellness. They are always on the lookout for creating methods that can tackle such abstract concepts, asking questions like, ‘is it worth it’ in order to truly value the importance of certain workplace practices. Their team of analysts and developers said that it has come up a new prognostic return on investment model, a scientific approach that accurately gives descriptions of exactly how much a worker’s economic state is possible to effect both in a good or bad way, their company’s bottom line in important zones such as nonattendance or absenteeism along with other important factors. Absenteeism is absolutely condemned in any organization and it was important to incorporate that factor in. Another crucial factor is salary garnishments – in the event of an employee falling under heavy debt, the court may place an order which forces the borrower’s organization to pay the lender his or her salary for the month. Since this is a court order, the organization is forced to comply without considering factors like the employee’s performance that month or whether or not he or she deserves to be fired for bringing on such problems for the organization. Another chief area Financial Finesse focuses on is the factor of benefits involvement.

That might come tremendously handy as an economic pressure in the office rises, it has a severe effect on an employee’s psychological and bodily comfort. Such stress can also cause major defects to the standard of work they can produce at work. Employers speculating the amount of money it could be costing their businesses, finally have a way of figuring it out.

The Financial Wellness Score has attempted to make this abstract calculation possible for companies to set a standard and calculate the return on investment related to refining workers’ levels of economic well-being. A state of wellness where a worker has minimal or no economic pressure along with savings funds to squash any unforeseen costs and a carefully designed strategy in place to achieve any targets in the future.

The return on investment model delivers businesses of variable scopes a procedure to set program standards, being able to determine the amount of savings that can be made through effective cutting down of costs, rank target worker populations and keep a record of development and actions over a period of time, in order for human resources and welfares teams to set quantifiable program targets and quantify the influence their financial well-being agendas have on the business’s bottom line.

The detailed study and analysis discovered that workers in the anguish and stressed groups affect their companies’ bottom line at an excessively high rate, be in the region of a yearly charge to the company of $198 and $94 for each worker, respectively. Workers with advanced economic well-being levels cost the organization less. In these desperate times where attaining services like cash advance has become many people’s last resort, it is important for organizations to act wisely.

The Consumer Financial Protection Bureau (CFPB) has taken new steps to introduce stiff legislation on smaller dollar lending companies, better known as payday lenders. Just recently, the government watchdog group made an announcement that they were proposing new rules that lenders would have to follow. These rules revolve around borrowers having the ability to pay back any loans that they take out, and the lenders would have to be the ones to make sure consumers are able to make timely payments. The CFPB also proposed a new rule that would that would limit the collections actions lenders can use for any fees that are “in the excess.”

“Today we are taking an important step toward ending the debt traps that plague millions of consumers across the country,” said the director of the CFPB, Richard Cordray. “Too many short-term and longer-term loans are made based on a lender’s ability to collect and not on a borrower’s ability to repay. The proposals we are considering would require lenders to take steps to make sure consumers can pay back their loans. These common sense protections are aimed at ensuring that consumers have access to credit that helps, not harms them.”

This announcement has caused a bit of a tongue wagging in recent days, though some folks seem to be reacting positively to the proposals. The editors at the New York Times ran a story with the headline of: “Progress on Payday Lending” as a way to chime in on the proposal from the CFPB. The Washington Post also chimed in, with an article that said, “Payday lending is ripe for rules.”

“If you lend out money, you have to first make sure that the borrower can afford to pay it back,” said President Obama with regards to the new rules. “We don’t mind seeing folks make a profit. But if you’re making that profit by trapping hard-working Americans into a vicious cycle of debt, then you got to find a new business model, you need to find a new way of doing business.”consumer-financial-protection-bureau-logo

Nobody wants to see Americans caught in these supposed ‘debt traps’ however, the rhetoric that supporters of the CFPB’s proposals use is obviously crafted to get people behind these new rules. It really comes down to certain folks in the government and in watchdog organizations that have decided to wage what they believe to be a righteous war against payday lenders. Being as most people, even the highly educated folks out there, really don’t understand how the payday lending industry works, it is easy to see how opponents of the industry are able to get people all riled up.

A recent piece in the New York Times reported that the proposed rule changes would only affect a billion dollar industry that ‘serves the working poor’ of this country. That is s common, though misleading view of the payday lending industry. A recent study found that 80 percent of people who take out short term loans make more than 25 thousand dollars a year, and that nearly 40 percent make more than 40 thousand dollars a year. Only around 18 percent of regular payday borrowers bring in less than 25 thousand dollars per year. That 18 percent is what most people envision when they are told about the plight of the ‘working poor’ in the United States. Seeing as how this group really only accounts for a minority of the people who take out payday loans, it is easy to see how the CFPB and its supporters are skewing the facts to tug at peoples’ heart strings. The fact of the matter is that most borrowers are able to pay back their loans, aware of the fees that they will pay and responsible enough to make their loan payments on time.

With Obama being one of the biggest cheerleaders for the CFPB, it looks like everyone will have to watch this bureau get their way for some time to come. But what price will people pay in order to give this organization even more power than it already has?

People have a habit of thinking that they are always smarter than that ‘other guy.’ Whether it is the coworker who supports a different professional sports team than you do, or that uncle of yours who has radical political views, we all seem to think that we usually know what’s best for other people. Let’s face it – getting up on a soapbox and looking down on others can often be a real rush for some people. This has become even more obvious in the Information Age, as everyone and their sister has a point of view about things that they are sure is more informed than yours.payday-loans-61

This all applies to payday loans. Many people seem to think that payday lenders are predators and that the people who take out loans from these lenders are ill informed and in need of rescuing. The lenders charge supposedly sky-high interest rates and “trap” their customers into a never ending cycle of debt. At least, that’s how the story gets told online time and time again. Oh, and those customers who take out payday loans?? They simply don’t know enough about finances to understand just how much they are screwing up by taking out payday loans, right?

This mindset is poisonous, judgmental and, as it turns out, not at all correct. Recent information that was released by the Consumer Financial Protection Bureau seems to reveal the truth about both payday lenders and their customers, and this truth is not at all what you’ve heard or read about in all of those online exposes or local news stories. In fact, it looks like payday lenders are providing very much needed financial services, and, contrary to popular belief, the people who take out payday loans are actually pretty financially savvy.

The CFPB recently analyzed the complaints that they have received over the past three years. When all of the data was laid out on the table, it appears that payday lending really isn’t a problem at all. In fact, only about one percent of the consumer complaints logged online had anything to do with payday loans. The vast majority of complaints were related to mainstream financial services, like mortgages and regular old credit cards. Debt collection was also factored in, and those three areas all added up to over 66 percent of the complaints that were officially logged to the CFPB. This data is backed up by data from the FTC that pretty much reveals the same stats.

The date from the CFPB also disclosed that if people use overdraft protection – the mainstream financial alternative to payday or short term loans – and the APR terms used for payday loans were also used for those overdrafts that people would be much worse off. The APR on the typical overdraft protection fee would come in at an astonishing 1700 percent, while the average APR on a payday loan is only around 350 percent. The CFPB also noted that since people understand payday loan fees as flat, one time fees, rather than bloated APRs that they are better equipped to pay back their loans on time, without any misunderstanding.

We know that the websites and news organizations that love to beat up on payday lenders are not going to change their tactics any time soon. But knowing that even an organization like the CFPB understands that payday loans are not the scourge of the financial world, like so many people pretend that it is, goes a long way in helping to really understand how the payday lending industry compares to other types of financial service providers. And it’s nice to know that payday loan customers really are not the ignorant, helpless people that so many reporters from the mainstream news community like to make them out to be.