The recent surveys have shown the strangest results, with the progressing technology people are stepping back and have started to avoid it. Online banking and credit cards are a great hit. They are known as the marvels of the modern technology but the surveys have deducted just the opposite results. According to the calculations people have started to avoid having bank accounts or hiring any kind of financial services from the bank. Then there is the group of people who were having the bank accounts already but they have started to lessen their use of account specially their applications provided to the customers.
The reason which has been concluded is that the banks have started to increase the rates too much of each and every service of their and that is why people have started to avoid bank accounts. 28.3% of the people of United States have decided to close their bank accounts or stop using them. Two terms have been introduced to such people. They are either called the unbanked or under banked. The unbanked are those who are having an account which is not backed up by the federally – backed financial institute. The under banked customers do have the savings account but they don’t use for paying their bills or completing their transactions.
People are looking for external methods to keep their money safe. They are using or finding other financial parties or organizations other than a bank which do take care of their financial problems. Even with the point that the money in the bank stays safe and the chances of any robbery or criminal attack on the house are low but they still prefer to live without a bank account. They are having hidden lockers and safes in their own houses or manors and they are happy with this.
When they are asked that why do they don’t want an account they simply say that they don’t have any money. This response can be funny to hear but represents the economy of the society. People are working very hard to earn their living and are still managing to earn only from hand to mouth. They don’t need to put the money in the bank since they have to spend it daily and it is finished mostly before the end of the month.
This number is increasing from two years. The payday loans and their providers are becoming more successful day by day and people are turning to them when they want a loan instead of to banks. They like the products and offers of AFS. The alternate financial services provide the packages which are more customers friendly and they take less interest if the person is having a good credit report. These services also give loans to the people who are having bad credit report. This is the reason why people have started to think that AFS are truly for people and for their needs.
In comparison debit cards are more in demand than credit cards. People who are not using their bank accounts that much have debit cards which they use instead of credit cards. According to them he credit cards just drag them into a cyclone of loans and debt. It becomes impossibly hard to pay their installments with interest and they find themselves into deep trouble.
People say that the bank staff and the policies are not clearly defined or explained to them before the deal but they find themselves in great disadvantage when the complete terms are explained to them after the deal has been made and they figure out that the damage is done.
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