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Tate HackertSeptember 16, 20184 min read

Escaping the Never-Ending Debt Spiral and What You as an Employer Can Do About It

Debt is the trillion dollar problem stopping Americans from smashing their financial goals – chances are, your employees are some of them.

The Dreaded Debt Spiral

Debt creates more debt. That’s what we call a Debt Spiral. A Debt Spiral – also known as a Debt Trap – occurs when people use debt-incurring methods to try and solve their current debt. The end result?

More debt.

And as much as we may want to place the blame on banks and their high-interest rates, rising costs of daily living, and the inconveniences of life – we really only have ourselves to blame.

The truth is: We’ve got a very unhealthy relationship with debt and that is why Financial Wellness continues to be a myth for the American people.

The Vicious Cycle of Debt 

Got an outstanding bill? Credit card.

Middle of the month and you need extra cash? Payday loans.

Need to settle an outstanding debt? Take out another loan to settle it.

Consumers have become accustomed to the idea of relying on quick-fix situations to navigate through their debt spirals. Totally unaware of the fact that they’re only creating a bigger mess for themselves. After realizing that their debt spiral is never-ending, this is how Americans feel:

Overdrawn, overspent and overwhelmed.

But despite experiencing these negative emotions, people in the US have become accustomed to having debt. Resorting to “solutions” that will only increase their debt, totally forgetting about the consequences that come with them. And it isn’t getting much better as stated by Quartz, “Delinquency rates for credit cards and auto loans are rising, while about 10% of student loans were at least 90 days overdue…”. Loans are an easy target because they are by nature, debt. Unfortunately, there are other products in existence that compromise individuals too and add up significantly over time. Unlike a student loan that may not be (entirely) avoidable, there is some debt that hides in the form of charges that is completely avoidable. The easiest one to point out: overdraft or Insufficient fund fees.

Cash Flow Mishaps and Overdraft Fees

Heard of it? You should have considering the fact that Americans paid $34 billion in overdraft fees in 2017. $34 billion dollars. Do you know what every individual could have done with that money if it hadn’t gone to overdraft fees? Much of this could have been prevented by simply shuffling around funds. Getting paid a little earlier or having more control over paydays could help prevent the ugly debt trap.

Focusing on this small, yet important component of the debt cycle, what can people do?

Employee advances are something that around 13 percent of employers do regularly. Employee advances or advances on your paycheck can be a great way to avoid unnecessary charges and debt. It is very important that payroll advances are used solely for replacing cash flow, and not to purchase something else. Typically, an employee requests an advance from the payroll department or directly from the business owner who then has to run a separate pay process and (most commonly) write a check to the employee. When payday rolls around, the payroll clerk then issues the employee their pay but withholds the advanced amount.

Unfortunately, we know too well the downsides of employee advances. We know that an as an employer you may run into liability issues by treating Jack different than Jill. We know that an extra pay run costs time and money. We know you don’t have a proper system in place to manage all the money you are graciously giving out in the form of advances. We know, above all, you don’t want to do it.

That’s why we made ZayZoon. To help the employer, and the employee.

ZayZoon is The Fintech solution that stands to reverse the debt problem millions of Americans face on a daily basis.

How ZayZoon Can Help With Your Debt Crisis

 As part of the rising Financial Technology industry, ZayZoon was created to put predatory lending – and excessive spending – to a stop.

This includes payday loans, overdraft fees, and wallet-burning credit cards.

Through partnerships with payroll and employers, we give employees access to their earned wages before payday. The difference between our system and the traditional loan systems out there is this:

Firstly, we aren’t a loan service and there is not a debt trap with us.

Secondly, we’ve made our process as seamless as possible:

Our clients can come into ZayZoon and withdraw their money as they earn it. 24 hours a day, 7 days a week, 365 days a year. Money to your bank account in seconds.

We give our clients the opportunity to receive their hard-earned money on their preferred schedule – without the worry of late bill payment fees.

As we mentioned earlier – we’re a FinTech firm with a dedication to razing the debt crisis individuals have to fight on a daily basis.

Are you ready to change the way you think of payday?


To learn more, click here.


Tate Hackert

Tate is the brain behind ZayZoon, developing the idea of providing access to funds before payday, in 2013. He feels gratified knowing “we get to improve the financial health of people each and every day.” One of his favourite ZayZoon experiences involves a business trip to Selinsgrove, Pennsylvania where he helped film a Holiday Inn Express testimonial video. Wearing a ZayZoon shirt at the local Walmart, someone saw Tate and exclaimed, “Hey, ZayZoon! I use that!"