January 15, 2025

The Reality of Being Cash Poor in 2025: A Call for Financial Change

Living paycheck to paycheck continues to be the reality for millions of Americans in 2025, highlighting persistent financial inequities and challenges. The 2025 Cash Poor Report delves into these issues, shedding light on the financial strain caused by rising costs, limited access to fair credit, and the growing reliance on short-term borrowing. This year’s findings provide a comprehensive view of the financial burdens faced by Cash Poor Americans and offer a roadmap for addressing these challenges.

The Scope of the Problem

The 2025 Cash Poor Report highlights how the costs of borrowing and accessing short-term capital contribute to financial instability for many households. Americans living paycheck to paycheck face significant barriers, including high fees, interest rates, and inadequate support from traditional financial systems.

The report reveals that:

• Payday loans and other high-cost options often charge rates exceeding 300% APR, making it difficult for borrowers to escape cycles of debt.
• Subprime credit cards remain the most expensive option, consistently draining financial resources.
• Traditional financial institutions provide limited support for underbanked and low-income individuals, focusing more on profitability than accessibility.

These systemic issues disproportionately impact Cash Poor Americans, placing an outsized financial burden on those who can least afford it.

Key Findings from the Report

1. $39 Billion in Fees: Cash Poor Americans paid over $39 billion in fees beyond advertised APR in 2025, a 34% increase from 2023.
2. Subprime Credit Costs: Subprime credit cards continue to rank as the most expensive borrowing option.
3. Fintech Affordability: For the second consecutive year, fintech platforms were identified as the most cost-effective and accessible solutions for short-term borrowing.

Why Community Finance Is the Solution

The 2025 Cash Poor Report underscores the importance of innovative, community-focused platforms like SoLo Funds. SoLo offers borrowers a transparent and affordable way to access short-term capital, while lenders have the opportunity to support others meaningfully. By fostering community-driven financial support, SoLo provides a viable alternative to the high costs and systemic barriers associated with traditional borrowing methods.

Unlike traditional systems, SoLo’s approach prioritizes transparency, empowering borrowers to take control of their financial decisions without hidden fees or exploitative terms.

What’s Next?

The 2025 Cash Poor Report is a wake-up call for policymakers, businesses, and communities to address financial inequities and create systems that prioritize inclusion and equity. Bridging the wealth gap and improving financial stability requires bold, actionable solutions and collaboration across sectors.

To learn more, explore the 2025 Cash Poor Report and its findings: The Cash Poor Report.

We’re immensely grateful to our partners—Opinium Research, Pace University, The Global Black Economic Forum, The Aspen Institute Financial Security Program, and the Independent Women’s Forum —for their contributions to this critical report.

For a quick overview, check out the accompanying press release here: Cash Poor Report Press Release.

Together, we can create a financial system that works for everyone—not just the privileged few.

The time for change is now.