How to Reduce Debt with a Financial Wellness Program

With increased job loss and financial insecurity due to the COVID-19 pandemic, many adults feel stressed about their finances. It’s important to note that financial stress can have a significant, direct impact on employee productivity and is a common cause of distraction. So how can companies support employees dealing with financial stress? The answer is simple: implementing a financial wellness program.

Financial wellness programs offer coaching, a variety of financial education services, and are an invaluable resource to help with issues like debt reduction. In fact, 80% of adults agree that they would directly benefit from professional financial counseling (corporatewellness.com).

How Financial Wellness Programs Reduce Debt

When you invest in your employees’ happiness and security, you invest in the future of your company. Employees experiencing financial stress are less-effective workers and are more likely to miss work or leave tasks incomplete.

Reducing debt can be one of the first steps in developing a financial plan. Debt management services should target specific issues related to debt, so your employees can work with the right resources to address their particular needs. These include:

Debt Counseling – Working with a debt counselor is a great first step for anyone wanting to gain more insight into repayment options. Among other benefits, “debt counseling can help people pay down debt balances and avoid negative consequences like foreclosure. When employees qualify, payment programs and lower-interest loans decrease the amount of money that goes to paying debt each month” (missionmoney.org). From income-driven repayment plans to loan refinancing, to deferment, understanding the array of repayment options is key when selecting the most feasible repayment plan.

Online Finance Management Services – Whether it’s setting up a reliable loan repayment plan or having immediate access to account balances, using online budgeting services is a fantastic way to stay on top of payments and track financial goals. Plus, it’s easy to set up automatic monthly or weekly payments towards loans so you never forget to make the transfer again.

Education and Classes – Financial wellness programs offer a variety of educational opportunities for employees seeking to gain a broader understanding of their debt. From online classes to in-person lectures, these resources are a great way to gain insight into debt management and to connect with coworkers and peers who have experience addressing similar concerns.

The Right Financial Wellness Program

Just as every business is unique, every financial wellness program is unique. From education regarding financial planning, to addressing common financial questions, financial wellness programs are designed to offer employees courses, counseling, and online platforms to help manage their money.

Financial wellness programs often address:

Planning for Financial Goals – Whether it’s saving for retirement or investing wisely, everyone has individual financial goals. Workplace programs are a great way for employees to take control of their finances and start working toward both short-term and long-term objectives.

Budgeting Assistance – Fostering a healthy relationship with finances involves creating a sustainable day-to-day budget. Learn how to create a healthy budget and stick to it to save more and spend less.

Credit Education – Financial wellness programs offer educational resources addressing credit cards, improving credit scores, and managing credit card debt.

Debt Management – Offer employees debt management resources, including debt counseling, repayment plans, and refinancing options.

Student Loan Repayment – Most Americans are saddled with at least some student debt. Financial wellness programs can connect employees to services specializing in loan repayment strategies.

Remember that selecting a financial wellness program is not a “one size fits all” solution. Financial wellness programs need to address the most prominent concerns your employees face, and that will vary from business to business. The best financial wellness solutions offer a holistic package that can be tailored to each of your employees’ unique needs.

At My Secure Advantage, we offer your employees unbiased, professional financial coaching to help address their financial concerns. On average, our clients see a 90% increase in overall financial well-being after working with our coaches and an increase of 1.9 hours per week in workplace productivity.* We offer easy-to-use online management tools to help your employees reach their financial potential.

Ready to chat about financial wellness for your workplace? Contact us today.

* My Secure Advantage, Inc., January 2023. Based on MSA member self-reported data, when working with a coach on this specific issue, from 1/1/21 – 12/31/22.