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>it affects the poorest and least technically literate in society disproportionately. Why does it affect the poorest disproportionately?
by macspoofing 2y ago
>it affects the poorest and least technically literate in society disproportionately.
Why does it affect the poorest disproportionately?
- dijit 2y agoThere are several possible reasons: 1. People who are "less well off" (i.e. poor) often can't get a credit card, because they've failed to pay off their balance on credit cards in the past, and their credit is shot. 2. Paying for things in cash is an effective budgeting technique. When you run out of your "spending money" (i.e. money not set aside for bills and necessities), then you can't spend any more, because you literally have no more money in your wallet. 3. Many poor people don't have bank accounts (possibly to avoid overdraft fees, and possibly because they don't trust banks), so they cash all their checks and pay for everything in cash. 4. In general, they tend to use check cashing places instead, feeling that the benefit of having a bank account isn't worth the hassle when they make so little money. & Even honest one-off jobs may pay in cash. The situation is going to be different for different people, but it's often some combination of the above.
- blitzar 2y agoUK banks are legally obliged to provide free basic banking facilities. Said facilities come with payment card, no overdraft and no fees for bounced payments etc. An estimated 9 million people (of 70million) in the UK use this type of account. This mitigates 1, 2, 3, 4.
- paganel 2y agoThe poorest tend to be less banked.