Eva Wong is the co-founder and COO of a fintech startup that is dedicated to helping users make sense of their credit. Indeed, credit anxiety is a prevalent stigma that affects countless individuals. Managing credit card debts and reducing credit utilisation are some of the biggest financial challenges that individuals can face. Unfortunately, credit utilisation is a double-edged sword that can enable people to afford things they wouldn’t be able to buy otherwise. They can then repay over time. In theory, credit is a smart move. In practice, however, many households rely on credit cards to buy essential services and products rather than as a convenience. As a result, they find it tricky to reduce credit card debts and manage their credit score.
Until Eva Wong’s startup, Borrowell, came along to afford support with credit utilisation management and help people meet their financial goals. Achieving financial literacy for self-improvement and a life out of debt is the goal behind the smart tool. Here are some of the most important lessons we can learn from Eva Wong and Borrowell.
Financial literacy is for everyone
Eva Wong has had the right idea about financial literacy. Lack of financial knowledge and know-how can be the source of dramatic issues. Money problems and money stress can affect everybody. Promotion financial literacy can come in a variety of ways, from relying on a Borrowell-like tool to introducing your team to financial assistance and advice. As an employer, you can find out more about the employee assistance programme that helps your employee manage their money problems alongside other life issues. When money becomes a source of embarrassment, it’s essential to offer a path to destigmatise it.
Money management problems are likely to be on the rise
The current pandemic situation is also expected to drive money stress and issues. Insolvency statistics have been on the rise at the end of 2019, with a whopping 23% increase on the previous year. Chances that the COVID-19 lockdown is forcing households to max out their credit cards to make ends meet on a limited budget. Many families have lost one source of income as a result of pandemic-related unemployment. Bankruptcy, individual voluntary arrangement and debt relief order are the three options for insolvency in England and Wales. Other places in the world have different arrangements. Yet, the truth remains: now’s the best time to learn how money literacy can improve your financial situation.
Why is money topic relevant to everyone right now
The M-word, money, is a source of stress and embarrassment for most people. However, the increase in remote working arrangement since the beginning of the pandemic creates additional risk. Indeed, individuals who work remotely are more likely to struggle with depression. Lack of social interaction can affect productivity and motivation. But it also makes it more difficult for individuals to make informed and strategic decisions about their finances. Overcoming feelings of loneliness in self-isolation is as much a matter of mental health as financial stability.
With Borrowell, Eva Wong helps to increase awareness about our money problems. Making credit knowledge and information accessible to all, the service reminds businesses all over the world, that money problems matter. Supporting teams with confidential assistance and social interactions can make a significant difference to their financial wealth under lockdown.