Author Topic: The Unbanking of America: How the New Middle Class Survives  (Read 475 times)

frugalparagon

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The Unbanking of America: How the New Middle Class Survives
« on: February 03, 2017, 04:13:25 PM »
Anyone else read this one? I thought this was super interesting. It's about the use of check cashers and payday lenders by people who are loosely "middle class."

It's easy to think that they should be using banks, but their increasing use of fees makes that more complicated. People use alternative services because they find them to be a better value and get the services they need (like your money today, not in five days when the check hold clears).

She goes on to describe attempts to give people what they need at lower cost--innovative companies working on things like alternate credit scores and faster check cashing--things that big banks aren't really interested in.

I thought it was thought-provoking. Sure, people should plan ahead, but to some extent, being able to do so comes from privilege.

What do you guys think?
I blog about Mustachianism during the child-raising years at frugalparagon.com.

DailyGrindFree

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Re: The Unbanking of America: How the New Middle Class Survives
« Reply #1 on: February 03, 2017, 05:24:08 PM »
Is there link that I can't see?
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marty998

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Re: The Unbanking of America: How the New Middle Class Survives
« Reply #2 on: February 03, 2017, 05:57:17 PM »
This is why it is so important to take liquidity when you don't need it (e.g. apply for a higher credit limit on a credit card when you have the means).

Because when the world turns as it so often does, the exact moment you need credit you won't be able to go to a bank to get it.

Is there link that I can't see?

This is the book club forum. I don't think she can send the pages through a screen :)

BNgarden

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Re: The Unbanking of America: How the New Middle Class Survives
« Reply #3 on: February 03, 2017, 06:56:09 PM »
There is apparently often a mismatch between when the income is available and when the expenses hit.  For many this would favour instant services.  Researchers in this area are looking into what services are useful under these conditions (per what you said).

See this fabulous series of research:
https://ssir.org/the_hidden_lives_of_americas_poor_and_middle_class

The last link is the piece I saw first, in a webinar:
https://ssir.org/the_hidden_lives_of_americas_poor_and_middle_class/entry/the_hidden_lives_of_americas_poor_and_middle_class

DailyGrindFree

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Re: The Unbanking of America: How the New Middle Class Survives
« Reply #4 on: February 04, 2017, 10:05:56 AM »

Is there link that I can't see?

This is the book club forum. I don't think she can send the pages through a screen :)

Da! :-) My bad. It was a rough day at work. :-)
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