How EWA may reduce American debt | ImmediatePay | Immediate

How EWA may reduce American debt | ImmediatePay

In this blog post, we'll discuss why companies should consider offering EWA and the impact it may have on reducing American debt over the coming years.

With increasing concerns about wages, debt, and financial instability in the U.S., employers are turning to a modern benefit that provides employees with on-demand access to their earned pay: earned wage access (EWA). This innovative, voluntary financial benefit allows employees to access a portion of their wages before payday and can result in powerful outcomes for individual households, as well as businesses. In this blog post, we’ll discuss why companies should consider offering EWA and the impact it may have on reducing American debt over the coming years.

EWA reduces the need for high-interest debt

Did you know that the national average annual percentage rate (APR) for payday loans is almost 400% (Tina)? Many Americans turn to high-interest debt options like payday loans or credit cards to cover unexpected expenses during the gap between paychecks. With Immediate, employees can responsibly access their earned wages before payday, reducing the need to turn to these costly predatory options.

EWA can help you avoid overdraft fees

According to Forbes, overdraft banking fees cost consumers $12.4 billion in 2020, alone (Smith). When employees have bills or expenses that need to be paid before their next paycheck, they may turn to over drafting their bank account, which can result in fees. Spending $30 here and there on insufficient funds fees (NSF) can quickly add up. Immediate can help employees avoid these pricey fees by providing them with the funds they need to cover their emergency expenses.

EWA can help reduce reliance on government assistance

According to studies, about 59 million Americans rely on some type of government assistance program to supplement their income (Milena). Immediate can help employees meet their financial obligations without having to rely on these programs by allowing them access to their earned wages when they need them most. Over time, our services can help build financial stability and help employees better manage their expenses. Immediate is also a responsible option for people who may have limited credit options.

Increase financial stability with Immediate

Overall, earned wage access delivered by Immediate can provide employees with increased financial stability, which can help them avoid debt, improve their financial well-being, and increase job satisfaction. Click here to learn more about how Immediate can benefit your employees, today.

Works Cited

Tina. “Payday Loan Statistics for 2023.” Balancing Everything, 3 Mar. 2023, 

Smith, Kelly Anne. “Banks Charged Low-Income Americans Billions in Overdraft Fees in 2020.” Forbes, Forbes Magazine, 6 July 2021, 

Milena. “24+ Welfare Statistics – 2023 Update.” Balancing Everything, 3 Mar. 2023,,SSI%2C%20TANF%2C%20and%20SNAP.

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