JMFA: Take the Stress Out of the Holidays with a Compliant Overdraft Program

The holidays are full of surprises; an overdrawn checking account shouldn’t be one of them.

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With Thanksgiving falling six days later this year than in 2018, consumers will lose almost a full week of holiday shopping. But thanks to advance retail promotions, the buying season began much earlier this year. Information from the National Retail Federation (NRF) predicted that 39 percent of consumers would begin their shopping in October. And many subscribers to online shopping services kicked off their holiday season in July, with digital events like “Prime Day” that featured mid-year, “can’t miss” holiday deals.

According to the NRF survey, retailers have figured out that many people prefer early shopping to spread out their spending and de-stress the season. So, while consumers who strategize to stay within their holiday budget can make the most out of early promotions and sales, the shopping frenzy can lead to financial hardship for those who don’t keep track of their purchases or who are hit with an unexpected expense.

In a financial wellness survey implemented by PwC, respondents from every generational group reported experiencing financial stress in their life. Cash flow and debt issues were cited as the biggest causes of stress. In the days leading up to the holidays, what are you doing to help calm your members’ financial concerns if they overdraw their account balance?

Read more here to find out the three things JMFA suggests your credit union can do to help members avoid unpleasant financial surprises.