[curryst]

That doesn't really address the underlying issue that OP pointed out.

People that have infrequent issues where they need to juggle money around could use this. They could also simply save money, since the implication here is that they have enough money but not at the right time. This is a nice option for them to have, though. I would also expect people in this category to have access to non-exploitative methods of financing. If they don't have savings, they probably at least have assets for use as collateral in a loan to get the interest rate down.

For others, they have frequent issues where they have to juggle money around. Their problem is cash flow, not the timing. They're going to continue to fall behind on their bills. They get a $500 paycheck, and have $450 in bills. They need $250 to fix their car, so they take it out. When their paycheck comes, they get $250 and can't pay the other $200 in bills. The late fees on their $200 bill they can't pay are going to stack up to eat the $50/month they could have saved. They're still paying financial expenses, they're just in late fees instead of interest.

[leetcrew]

there's a third situation. suppose I spend roughly the same amount of money every month as I earn. on paper, this means that I should be treading water, at least. but my wages actually hit my bank account a week after the end of each pay period. in the worst case scenario, I won't see my first paycheck until about three weeks after my first day of work. at the very least, this cuts into my savings, but could leave me permanently in the hole as late fees stack up, even though my income matches my spending! a different version of this problem can occur in any month where paydays and bill due dates fall in the wrong sequence.

credit-worthy people can easily fix this issue with credit cards, which fix the paid-in-arrears issue, and also smooth out spiky intra-month cashflow. but I can see this product being very useful for people who can't get credit cards or don't feel responsible enough to use one.