But this convenience comes with a hard price: it further exacerbates the precarious financial state of many families and, in many cases, locks them into a downward cycle of deteriorating finances. This is not to say that mainstream financial services are inexpensive. Free checking accounts are quickly disappearing, replaced by accounts with rising fees.
Overdraft fees on checking accounts can also be pricy, ranging from $ to $ with a median fee of $ These fees are not insignificant, particularly when applied to small dollar transactions.7 In sum, the financial crisis has left many lower- and moderate-income Americans in danger.