Comment Re:Welcome to The Future! (Score 1) 147
Not really anything new - people have been buying groceries on credit cards for years, it helps to meet basic needs between paychecks. This is a shift from asking a friend or family member bo borrow a few hundred dollars until payday to using an app and avoiding embarrassing conversations with friends or family.
The thing to look out for is when people start missing payments, incurring late fees, etc., that means they have run out of resources/options.
Using credit to manage cash-flow issues isn't necessarily a sign of an impending depression, borrowing $500 or $1,000 has never been easier, and I think that ease is the main driver for the uptick in activity.
Borrowing for basic needs is not sustainable, I'd be curious about the repayment history (how long to pay-off loan) and repetition (how often).
As I recall, micro loans were once the things that were going to lift countless poor folks out of poverty in third-world countries, but somehow micro loans in the US is a sign the economy is about to implode?