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No. I have family who have/had payday loans. From my personal experience they're taken up because an emergency happens, not because the money ran out 2 days bef
by jdavis703 8y ago
No. I have family who have/had payday loans. From my personal experience they're taken up because an emergency happens, not because the money ran out 2 days before payday. A daily payday drip might make sense for some consumers, but what's really needed are accounts that start to build up an automatic emergency fund, and perhaps also look at past banking history to quickly give an emergency loan that is automatically repaid when the next direct deposit hits.
- CydeWeys 8y agoThere's been some success with lottery savings accounts in other countries. The idea is that it's very hard to get people interested in saving if they'll only see a handful of bucks per year in interest on the kinds of amounts they'd be saving, but if that saving instead enrolls in a lottery they could see a huge return. Basically, turn small predictable gains into smaller predictable gains plus much larger unpredictable gains, so that people start redirecting money spent on the lottery (which is a big net negative for them) into money in savings accounts (a net positive for them). And then, as a bonus, they also have money saved up for an emergency.
- dawhizkid 8y agoAgreed. Given the new fintech wave, I'm surprised that there hasn't been a Digit or Acorns competitor for prized-linked savings account rolled out yet.