ATLANTE, March 16, 2022 /PRNewswire/ — In March, credit professionals, financial experts and lending institutions recognize National Credit Education Month. purchasing power®, a voluntary benefit company offering the leading employee purchase program, encourages all consumers to use the month as an opportunity to hone their credit awareness skills and knowledge of all financing options.
“It’s a fact of life that unexpected and new expenses are going to happen, like appliances that wear out or tires that suddenly need to be replaced,” said Assad Lazarus, Chief Client & Development Officer, for Purchasing Power. “And when that happens, many consumers turn to credit cards or other better-known payment options to cover new or unexpected expenses.”
“When these expenses arise, consumers need to be both credit savvy and knowledgeable about all of their financing options,” he added. “What may look like a quick funding lifeline at the time may have longer-term financial implications.”
The Bureau of Labor Statistics recently reported that inflation in the United States hit a 40-year high in January, with prices rising 7.5% from a year ago. In the last three months of 2021, credit card balances increased by $52 billion – the largest quarterly increase in the data’s 22-year history. Worse still, January’s rise in the consumer price index (CPI) was the largest since February 1982reflecting significant increases in the prices of food, electricity and housing.
Wage and salary increases aren’t helping because rising inflation and rising costs of living mean employees will have less purchasing power this year.
Conventional credit options such as credit cards; buy now, pay later; and rent-to-own may be an appropriate solution for new and unforeseen expenses. However, another option for consumers may be an employee purchasing program.
With an employee purchasing program, employees can purchase consumer products and services through automatic payroll deductions over a 6 or 12 month period. There are no credit checks, no interest or hidden fees, and automatic deduction helps ensure that employees don’t suffer the consequences of missed payments. Prices may be higher; however, without accumulating monthly interest, making regular payments over a period of time provides more long-term value, as well as easier monthly budgeting.
“Consumers should know the terms of their financing options before making a purchase using any financing method,” Lazarus said. “In some situations, there may be voluntary financial wellness benefits available through the consumer’s employer. An employee purchase program, for example, may be a better option for an unexpected expense. and unexpected.”
Still recovering from pandemic-related financial difficulties and now facing rising interest rates and record inflation, consumers are looking for ways to meet their short-term shopping needs. Being credit literate and considering alternative credit options like voluntary benefits will mean consumers will make smart credit choices even for short-term purchases and avoid jeopardizing long-term financing options.
About Purchasing Power, LLC
Purchasing Power, LLC, is a Atlantavolunteer-based company celebrates 21 years as the leading employee purchasing program for consumer products and services through payroll deductions. By helping employees achieve financial flexibility, purchasing power is accessible to millions of people through large corporations, including fortune 500s, associations and government agencies. Purchasing Power is a Flexpoint Ford, LLC company. For more information, visit www.corp.purchasingpower.com.
Purchasing Power is a registered trademark of Purchasing Power, LLC.
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SOURCE Purchasing Power, LLC