2025 Cash Poor Report” Data Shows Troubling Financial Trends Amongst Women Living Paycheck to Paycheck

Findings highlight disproportionate challenges cash-poor women experience paying for expenses compared to their male counterparts

Los Angeles, CA, March 25, 2025 — SoLo Funds , the US’s largest community finance platform, is announcing today data from the The 2025 Cash Poor Report that depicts the concerning financial health and well-being for women living paycheck-to-paycheck or cash poor. The comprehensive survey examines this consumer’s financial experience and the true total cost of borrowing money over a 12-month period from common options to cover unplanned expenses. This year’s report reveals that 54% of cash-poor Americans are women, and that 71% report that their financial situation over the past twelve months is worse than they expected compared to 61% of men living paycheck-to-paycheck.

The 2025 Cash Poor Report was conducted in partnership with Opinium Research, Pace University, The Global Black Economic Forum, The Aspen Institute Financial Security Program, and the Independent Women’s Forum. The study surveyed 2,000 American adults spanning Gen Z, Millennials, Gen X, Boomers and the Silent Generation, and found that when comparing fees as a percentage of a $1,000 loan. The survey illustrates that Americans with little or no savings paid more than $39 billion dollars in fees–beyond the advertised Annual Percentage Rate (APR)–when seeking short-term capital, a 34% increase from 2023.

Findings show that cash-poor consumers are much larger than what was once assumed as it’s mostly middle-class Americans, including those with college degrees, those who own homes, are investors, and those who have six-figure incomes. One in seven cash-poor Americans makes over 75,000 a year. As well as unplanned expenses costing the average American family living paycheck to paycheck $1,825 a year – a decrease from $1,900 in 2023.

Women disproportionately face economic barriers when paying for an emergency expense due to mounting debt, and bills. Some of the key findings include:

• Women living cash poor are much more likely to say they are struggling with their current financial situation than men (56% vs. 39%).
  • Nearly half (48%) of Americans living cash poor say they’re currently struggling with their personal financial situation – an 8% increase from last year. This figure rises to 61% among those with $500 or less in their savings.
• Americans living cash poor  are slightly more likely to be women (54% to 47%). This is more pronounced among Millennials (59% to 42%) and Gen X (62% to 56%).

• 16% of cash-poor women are not confident in their ability to pay for planned expenses they regularly incur
• 39% of cash-poor women used a credit card to pay for planned expenses
  • Subprime credit cards have the highest average with the greatest variability. Looking at the data, these credit cards remain the most expensive option for unplanned expenses, with the average cost rising to 48%, up from 41% in 2023. Maximum fees can reach a staggering 90% of the principal borrowed, driven by high total fees, penalties, and monthly maintenance fees. These cards account for $19.6 billion in aggregate borrowing costs in 2024, marking an $8 billion increase from last year.
• 48% of cash-poor women experienced unplanned expenses on at least 2-3 occasions
• The most common unplanned expenses that cash-poor women experience most included auto repairs (22%), unexpected utility bills (15%), unexpected medical bill (10%)
  • The average cost of these unplanned expenses for cash-poor women were around $855
• The highest fees for paying an unplanned expense for cash-poor women were APR or interest (51%), late fees (23%), transaction fees (16%) and instant cash fee (14%)

• The APR rate continues to not include late fees, origination fees, subscription fees, transaction fees and other expenses that can create debt traps for consumers in a financial crisis. Fintechs with newer fee structures like tips and donation are more affordable than APR driven products.

• 10% of cash-poor women used payday loans to pay for unplanned expenses
  • Payday loans feature the highest minimum borrowing cost among all options at 22%, with an average cost rising to 35% (from 33% in 2023). Maximum costs reach 67%, fueled by origination fees, late fees, and penalties. Aggregate costs for payday loans increased to $6.7 billion in 2024 from $6.2 billion in 2023, reflecting the ongoing financial burden these loans place on borrowers.
• P2P loans like SoLo remained the most affordable option in terms of aggregate borrowing costs, totaling just $1 billion in 2024. This marks a decrease from $1.3 billion in 2023, driven by reduced borrowing amounts. While borrowing can be cost-free for disciplined users, average costs can reach 17% due to tips and late fees.
  • After comparing what the true total cost of borrowing money is when using payday loans vs. credit cards, and fintechs – SoLo was one of the most affordable  options to borrow money
• Friends & Family: 43% of those surveyed noted borrowing money from family and friends to pay for unexpected expenses – up from 38% in 2023.  

“Women are being disproportionately pushed into financial distress by outdated banking models and predatory lending,” said Rodney Williams, President and Co-Founder of SoLo Funds. “The data is clear: fintech and community-based financial solutions are proving to be a better alternative, and women deserve access to borrowing options that don’t put them further into debt.”

To download the full report and learn more about the 2025 Cash Poor Report, please visit www.theCashPoor.com