Paycheck-to-paycheck living isn’t just for the working class anymore, according to community finance platform SoLo’s 2025 Cash Poor Report.

Many middle-class Americans, including those with college degrees, those who own homes, people who are investors, and those who have six-figure incomes, are also “cash-poor,” SoLo said in its survey of 2,000 adults. Cash poor means not having enough liquid cash on hand to cover unplanned expenses, which averaged $1,825 for the average family living paycheck to paycheck last year, it said. One in seven cash-poor Americans makes over $75,000 a year, it said.

To cover unexpected medical bills, car repairs or other surprise expenses, many Americans turn to expensive short-term loans that can further erode their finances, SoLo said.

“Being cash poor is a way of life for most Americans, this creates vulnerability in being able to manage variable and unplanned expenses,” said Rodney Williams, president and co-founder of SoLo.

Who are the most vulnerable cash-poor Americans?

According to SoLo,

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• 54% of cash-poor Americans are women
• Two-thirds are millennials and Gen X. Gen X is comprised of those born between 1965 and 1980, while millennials were born between 1981 and 1996.
• 14% are Black American
• 40% work full-time

How much are Americans paying for short-term loans?

Americans paid more than $39 billion, or 34% more than in 2023, in fees to borrow money to pay their unexpected expenses, SoLo said. Fees were on top of the advertised Annual Percentage Rate (APR), which often already reaches into the 20% range for credit cards, it said.

What types of short-term loans do Americans use to bridge gaps?

To pay for surprise expenses like medical emergencies or car or home repairs, SoLo said cash-poor Americans often use some of the following:

• Subprime credit cards: The most expensive option, with an average cost of 48%, up from 41% in 2023. Maximum fees can reach 90% of the principal borrowed, driven by high total fees, penalties, and monthly maintenance fees.
• Payday loans: The average cost is 35%, up from 33% in 2023. Maximum costs reached 67%, fueled by origination fees, late fees, and penalties.  
• Buy now pay later, or BNPL: A relatively affordable option that allows people to pay in instalments. It has minimum fees averaging just 2%. However, costs can climb to 45% due to interest and additional fees.
• Earned wage access: Tapping into your earned wages before payday has one of the lowest average borrowing costs at 13%, but fees can rise to 26% if including optional tipping and transaction charges.
• Bank small-dollar loans: Growing in popularity, these are typically less than $1,000 and repaid in a few weeks or months. Average borrowing costs were 25% in 2024, with a minimum fee of 12%, mostly because of mandatory account balance and deposit requirements.
• P2P, or peer-to-peer, loans: The most affordable option in terms of aggregate borrowing costs, but average costs may reach 17% due to tips and late fees.
• Friends & family: 43% of people surveyed borrowed from friends and family last year. That’s up from 38% in 2023. These loans generally have no fees.

Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at [email protected] and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning.