This combination of economic insecurity and financial marginalization has placed more low- and moderate-income families right at the well-lit front doorsteps of payday lenders and other alternative financial service providers to try to meet their financial needs.
Alternative financial services: convenience vs. cost While alternative financial services may serve the access needs of many consumers, they often come at a much higher cost than traditional financial services. For example, the typical payday lender may charge $ to $ per $ borrowed for a two-week period, translating into annual percentage rates often exceeding 390 percent.