We’re proud to announce the launch of our new insights series on predatory debt, taking a bold step toward reshaping how harmful financial products are defined and addressed. Over the years, our work with low-income workers has given us a unique, in-depth perspective on the debt products that entangle them in cycles of borrowing and strip them of financial stability. Our data reveals that 55% of our clients are burdened by predatory debt, and 94% of those hold at least three harmful products. Drawing on this expertise, we’re introducing a new, expanded definition of predatory debt—one that goes beyond the obvious culprits to include product features and lender practices that jeopardize workers’ financial security. We’re excited to share this work with you! Learn more and read the first brief here: https://neighborhoodtrust.org/wp-content/uploads/2024/12/NT_PredatoryDebt_IR-1b.pdf (fb)

Cash advance apps. Retail store credit cards. Buy now, pay later apps. What do these have in common? While they can be convenient options for consumers seeking to access financing options or address cash flow shortages, some have harmful characteristics that lead to negative financial implications for low-income consumers. Many incentivize over-spending and use features designed to keep workers dependent on the product over the long term, which can trap them in a debt cycle. In Tackling Debt on All Sides - we share our data on the scale and design of these products that cause burdensome debt for our clients. Our insights also highlight our approach to helping clients trapped in debt cycles stemming from these products. Our Financial Coaches create customized plans that introduce safer products and set workers on a path toward building savings and achieving financial freedom. Read more here: https://neighborhoodtrust.org/tackling-debt-from-all-sides/ (fb)