Credit card delinquencies have spiked to their highest level in over a decade, with the Federal Reserve reporting that 9.1% of credit card balances transitioned to delinquent in 2024. This alarming trend is largely driven by rising inflation, which has stretched household budgets to their limits, leaving many Americans without an emergency fund or affordable credit options. As a result, employees are increasingly relying on high-interest credit cards and struggling to keep up with payments, leading to heightened financial stress.
The impact of this financial strain on employees extends beyond their wallets. Stress from credit card debt is significantly affecting workplace productivity, mental health, and overall company culture. Employees burdened by financial concerns report spending over eight hours per week worrying about money during work hours, contributing to absenteeism, decreased productivity, and strained relationships with coworkers. For employers, this can mean higher turnover rates, as financially stressed employees are twice as likely to seek opportunities elsewhere.
To help address these challenges, employers can explore financial wellness benefits that offer affordable credit options, promote emergency savings, and provide financial education resources. At FinFit, we empower employees to take control of their financial health through our comprehensive platform. Discover more insights and practical solutions in our latest infographic.