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In today’s economy, many families struggle to make ends meet. Paychecks go just far enough to meet expenses, leaving little cushion for events that can break a budget, such as an expensive car- or home repair or loss of income. In fact, according to a survey by JP Morgan Chase Institute of one million Chase customers, 50 percent experienced a monthly income swing of 30 percent or more between 2012 and 2015. For lower income Chase customers, the percentage rose to 50.
Living on tight margins increases stress levels. Worry can become constant when even a minor upset can cause a family to fall behind on essential bills. Often, families resort to credit cards and payday loans, which can make their stresses even more acute in the longer term. Debt is the opposite of what families struggling to make ends meet need. Savings provide the key to relieving financial instability. For the millions of families struggling with financial instability, Fintech has created exciting products that boost savings, reduce debt, and make managing household bills easier.
Even
Even is a three-year-old app that assists customers with fluctuating incomes. Even calculates the family’s average monthly income over past paychecks and advances the difference when paychecks are low. It then collects the advances when higher paychecks arrive. For workers paid on commission, freelancers, and employees dependent on tips, Even can be a lifesaver. Though freelancers, salespeople, and servers may take home huge paychecks, they also get skimpy ones when business slows. Often, savings are depleted and workers wind up with debt, overdraft fees, and late payment fees as a result. Even puts an end to that destructive cycle.
Digit
Digit helps households save money on a consistent basis. Saving often eludes people because they lack a consistent, large chunk to put away every month. Often, the only way to save or increase savings are through tiny increments. Digit analyzes users’ pay rates, bills, and spending. When a chance to add to savings occurs, Digit automatically deposits the money into an interest-bearing savings account.
Prism
This app takes all the stress and angst out of paying the monthly bills and guards against late payments. Prism creates reminders of payment due dates. Users are able to pay their bills when the reminder comes simply by clicking on a button. Prism ends long periods of time spend logging in an out of multiple accounts or, for the old fashioned, writing checks.
Fintech also assists in finding low-interest lending opportunities. As everyone on a tight budget knows, paying huge interest rates hurts. Ascend Consumer Finance, for instance, provides consumer loans with rates much more competitive than payday lenders.
Credible provides a multi-lender platform for securing private student loans. By using Credible, student loan borrowers are able to shop for the most competitive student loan rates. Unlike federal student loans, private student loan rates vary greatly by lender. Choosing the best option saves borrowers thousands of dollars in interest payments.
In an era where high living costs take an increasing proportion of Americans’ incomes, saving money has never been more important.
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