Employer-employee loan schemes could improve outcomes for financially stressed US households, according to an article published by the Federal Reserve Bank of Minneapolis on June 19.

Families that routinely struggle to make ends meet often resort to credit options that can impose high costs. “Every year, millions of Americans turn to payday or auto-title loans to find credit, collectively spending $9 billion on loan fees,” says Ben Horowit, community development manager at the Minnesota Fed.