Payday loan use growing among middle class families

As the country's economic news worsens, a natural side-effect of job losses and financial uncertainty is the increase in people looking for small loans to pay bills and handle emergency repairs. The Atlanta Journal-Constitution reprinted an article last week from the Los Angeles Times about the booming business of payday loans and its growing popularity with the middle class. Many families live without a financial cushion, and borrowing $300 for a $45 payday lender's fee seems reasonable when faced with having the lights or heat turned off in their homes.

Good money management
One of Directo's goals is to make every cardholder a savvy consumer. We email monthly newsletters full of money-saving tips to all of our clients to share with their employees, and counsel cardholders on the best ways to handle their accounts. An alternative for those looking for immediate access to extra funds for a short period of time is the ability to overdraw their accounts with overdraft protection for a much lower fee than a payday lender's.

Directo paycard accounts are portable, so it's not just the card their employer gave them at this job - it's an account for life. Directo paycard customers know that they don't have to carry all of their cash with them, that it's safe in their account, and soon discover that it's easier to save when their money is in the bank. And those savings might just keep them away from the payday lender.