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How do everyday Americans struggle with financial setbacks and find ways to regain stability?
Life is unpredictable, and for many Americans, a single emergency can wipe out savings. Even those with stable jobs and decent incomes often struggle to cover unexpected expenses. It’s not just about how much you earn—it’s about having enough when it matters.
For Ilaria D’Anca of Mesa, Arizona, and Tenisha James of Waterbury, Connecticut, financial setbacks forced them into tough situations. But instead of giving up, they found ways to fight back.
How Financial Stability Disappears Overnight?
D’Anca, 44, had a successful 20-year career, earning six figures. But from 2016 to 2019, a series of crises—career changes, family disputes, home flooding, and legal battles—wiped out her $150,000 savings.
“I lost every penny,” she said. “We had three vehicles repossessed and lost our home.”
She turned to short-term loans but quickly discovered how “bad financial products” trap people in deeper debt.
Why Borrowing Can Make Things Worse
In 2025, cash-strapped Americans paid $39 billion in borrowing fees, 34% more than in 2023. Some of the most expensive options include:
- Subprime Credit Cards – Fees and interest can reach 90% of what’s borrowed.
- Payday Loans – Start at 35% interest but can climb to 67%.
- Buy Now, Pay Later (BNPL) – Can jump from 2% to 45% with fees.
- Earned Wage Access (EWA) – One of the lowest-cost options but can still rise to 26%.
D’Anca learned this firsthand when her truck broke down.
“They covered my $2,200 repair, but if I didn’t repay in three months, the interest would shoot up to 169%,” she said. With no other choice, she took the loan.
The Struggle to Get Ahead
Single mom Tenisha James, 47, always worked full-time but struggled to pay bills on time. Late fees kept her from catching up.
“I’d miss a bill while waiting for my paycheck to clear. Late fees would eat up my money,” she said.
She avoided payday loans but turned to EarnIn, an EWA service, to access her paycheck early and prevent late fees.
“I paid $4.95 per use—way less than the late fees I would have paid,” she said.
Unfortunately, new regulations in Connecticut now restrict EWA services, cutting off her financial lifeline. She started a Facebook group and petition to push for change.
Who Are the Cash-Poor?
Many believe paycheck-to-paycheck living is a working-class issue, but it affects homeowners, college graduates, and even six-figure earners.
- 1 in 7 cash-poor Americans earn over $75,000.
- 54% are women, and two-thirds are Gen X or Millennials.
- 40% work full-time yet still can’t cover emergencies.
How to Break the Cycle
If you’re struggling financially, here are some ways to avoid costly loans and fees:
- Build an Emergency Fund – Even small savings add up.
- Research Lending Options – Avoid loans with hidden fees.
- Negotiate Bills – Many companies offer payment plans.
- Look for Low-Cost Borrowing – P2P lending, EWA, and small-dollar bank loans are better alternatives.
D’Anca and James show that while financial struggles can hit anyone, smart decisions and persistence can help break free from the cycle.
