It’s Expensive to Be Poor — And It Doesn’t Have to Be
When Maria’s car broke down on her way to work, she didn’t have the $400 on hand to cover the repairs. With no savings buffer, she turned to a payday loan with an interest rate of more than 300%. Weeks later, a high utility bill arrived. She couldn’t pay it all at once and her electricity was disconnected. To keep her kids warm, she bought space heaters and groceries from convenience stores at double the price of a supermarket. By the time she dug out of the debt cycle, she had spent nearly twice what someone with more resources would have paid for the same needs.
Maria’s story isn’t unique. It’s a vivid reminder that poverty is not only about having less - it’s about being forced to pay more.
The Hidden Costs of Poverty
People living paycheck-to-paycheck face a reality most of us don’t see:
Banking fees → In 2019, Americans paid over $11 billion in overdraft fees, with the largest burden falling on low-income account holders.
Payday loans → Interest rates regularly exceed 300% APR, compared to 15–25% for mainstream credit.
Housing & utilities → Lower-quality housing often means higher utility bills due to poor insulation, outdated appliances, and inefficient systems. Renters also pay higher upfront costs in deposits and fees.
Medical debt → Nearly 4 in 10 adults in the U.S. report having medical debt in collections, disproportionately affecting low-income families.
The result? It costs more to be poor than it does to be financially secure. And these costs keep families from building savings, investing in education, or pursuing opportunities that might break the cycle.
Why This Matters
Poverty is a trap reinforced by structural inequities:
The financial toll — High interest rates and recurring fees eat into already limited incomes.
The emotional toll — Constant stress from instability impacts health, relationships, and decision-making.
The community toll — When whole neighborhoods carry these burdens, cycles of disinvestment, instability, and inequality deepen.
It’s not enough to say people should just “budget better.” Systems are designed in ways that make it more expensive to be poor.
What Can Be Done
At the Systems Level
Reform predatory practices like payday lending and excessive overdraft fees.
Expand access to community-based financial tools like credit unions and micro-lending platforms.
Enforce fair housing standards that ensure low-income renters aren’t paying more for unsafe or inefficient housing.
Protect vulnerable households from utility shutoffs, especially during extreme weather.
At the Personal Level
You don’t need to run a foundation or write legislation to make a difference:
Support organizations tackling these inequities (financial counseling, fair housing, credit-building).
Share stories that put a human face on hidden costs—storytelling builds empathy and drives change.
Advocate locally for fair utility practices, affordable housing protections, and payday lending reform.
Give consistently—even small, recurring donations provide nonprofits the stability they need to reduce these burdens for others.
Practice proximity—get to know your neighbors, listen to their experiences, and stand alongside them.
Because it shouldn’t be expensive to be poor.
Together, we can rewrite this story.
A Call to Action
At Access Ventures, we believe flourishing means more than survival - it means dignity, stability, and opportunity for all. But for that to happen, we must first recognize and confront the hidden costs that make it so expensive to be poor.
Explore stories of resilience:
Learn more about structural solutions in our downloads:
Support companies reimagining fair systems:
Samaritan — helping unhoused neighbors access support through community networks.
SoloFunds — peer-to-peer lending with dignity and fair terms.
mRelief — making access to food assistance simple and stigma-free.
Leap Fund — helping workers overcome benefit cliffs and move toward long-term stability.
(Originally posted February 2018, updated October 2025)