Employers Offer Aid to Avert Foreclosures

Wall Street Journal (06/17/08) P. D1; Needleman, Sarah E.
A recent survey by the Society of Human Resource Management reveals that an increase in pay advance requests was reported by 20 percent of employers in 2007, while a jump in retirement savings withdrawals was reported by 39 percent of those polled. In response, more companies are providing interest-free loans, grants, improved employer-assistance programs and personal finance seminars to curtail the productivity losses that occur when workers experience financial problems. Baptist Health South Florida is one company taking steps to help struggling employees avoid foreclosure. It has a $280,000 fund in place that has given more than 100 employees interest-free loans of $3,000 to $5,000 from January through May, allowing them to catch up their mortgage payments and giving them two years to repay the money.