You cash a check or pay a bill if you don’t have a bank account вЂ“ and millions of American’s don’t вЂ“ how do? Also you get a small loan in an emergency if you do have a bank account, how do? One study showed that up to 63 per cent of People in the us could be strapped to increase $500 should they needed it in an emergency.
The word if you have no bank records is вЂњunbanked.вЂќ In line with the 2013 FDIC National Survey of Unbanked and Underbanked Households, вЂњ7.7 per cent ( one out of 13) of households in the us were unbanked in 2013. This percentage represented nearly 9.6 million households.вЂќ In addition to that, вЂњ20.0 % of U.S. households (24.8 million) had been underbanked in 2013, which means that that they had a bank-account but in addition utilized alternate monetary solutions (AFS) not in the bank operating system.вЂќ
That is untold thousands of People in the us whom either lack a banking account or otherwise need to use “alternative financial solutions,” such as for example payday loan providers and look cashing solutions. A 2014 AlterNet article, “the latest Financial Scam Driving Workers Deep Into Debt,” stated what this implies: “then you own them, sometimes literallyвЂ”itвЂ™s a game as old as money itself if you can lure people into borrowing. “