Banks, debt, and credit scores weren’t made with your freedom in mind.
Money stress isn’t just about bad habits or poor planning—it’s about a system that was never built to let most people win. From the moment you open your first bank account to the day you retire (if you even can), the financial system is stacked in ways that keep you grinding, guessing, and just barely getting by. And while personal responsibility matters, pretending this is all about individual choices ignores the bigger picture.
High-interest loans, shady fine print, impossible-to-crack credit formulas—none of it is accidental. These are features, not bugs. The more confused or desperate you are, the more profit they make. It’s no surprise that so many people feel stuck, anxious, or like they’re constantly falling behind. Because the truth is, you’re not failing at money—the game was rigged from the start. Here’s how the system keeps everyday people in survival mode.
1. Credit scores punish you for being poor and reward you for being in debt.
You’d think a good credit score would mean you’re financially responsible—but the system works in reverse. As highlighted by Dave Martin for the Financial Times, credit scores are designed to measure how well you manage debt, not how well you manage money.
Credit scoring models are designed to favor people who play the game—those who keep accounts open, stay just in debt enough, and interact with banks regularly. It’s not about financial health. It’s about tracking your usefulness to lenders.
So if you’ve ever felt like no matter what you do, your score never reflects your actual effort or stability, it’s not your imagination. The system isn’t measuring how well you manage money. It’s measuring how well you serve the debt machine.
2. Interest rates hit hardest when you need help the most.
When you have money and great credit, lenders practically roll out the red carpet—offering you low interest, perks, and flexible terms. But the minute you’re struggling? That’s when the system gets ruthless. Julia Kagan at Investopedia explains that risk-based pricing allows lenders to charge higher interest rates to borrowers deemed higher risk, often resulting in those with lower credit scores facing more expensive borrowing costs.
It’s called risk-based pricing, and while it sounds logical, it basically means people with the least money pay the most to borrow it. So if you miss a payment or fall behind, the punishment is financial quicksand. It’s not just discouraging—it’s mathematically designed to trap you. The richer you are, the cheaper money becomes. The poorer you are, the more expensive everything gets. It’s a loop that’s hard to break and easy to profit from—which is exactly why it exists.
3. Banking fees quietly drain your account without you noticing.
Think overdraft fees, maintenance charges, ATM withdrawal costs, “inactivity” penalties—the list never ends. These little hits might seem minor, but for people living paycheck to paycheck, they add up fast. Per experts at the Consumer Financial Protection Bureau, banks collected $5.8 billion in overdraft and non-sufficient funds fees in 2023, disproportionately impacting low‑income consumers who often face multiple charges annually.
Overdraft fees in particular are brutal. One small mistake—spending a few bucks more than you have—can snowball into a chain reaction of penalties. And instead of declining the charge, banks often approve it and hit you with a $35 fee anyway. It’s not about helping you manage your money. It’s about squeezing the most out of the people who can afford it the least.
4. Student loans were sold as opportunity but turned into lifelong debt traps.
Higher education was supposed to be the key to upward mobility, but for millions, it’s become a never-ending financial anchor. Student loans are one of the only debts that can’t be wiped out in bankruptcy, and interest keeps piling on even when you’re barely making a dent in the principal. It’s not just a bill—it’s a decades-long burden.
The system preys on young people who are told this is their ticket to a better life. But once those loans hit, repayment becomes a constant source of stress, often delaying homeownership, family planning, or even basic stability. And while the cost of college has skyrocketed, wages haven’t kept up. Meanwhile, lenders and loan servicers make billions off the interest. It’s not a broken system—it’s a business model. And it’s working exactly as intended.
5. The stock market rewards wealth while punishing the poor for not having any.
People love to say “investing is the key to building wealth,” but here’s the catch: you need money to make money. The financial system is built to reward those who already have capital—and it leaves everyone else scrambling just to keep up. If you don’t have extra cash to invest? You miss out on the compounding gains and tax breaks the wealthy enjoy effortlessly.
Meanwhile, your paycheck gets hit with taxes before you ever see it, while investment income is often taxed less. And if you try to grow your money without access to financial literacy or safety nets? One wrong move can wipe you out. The system creates a permanent divide between the people who can afford to take risks and those who are just trying to survive. The game isn’t just unfair—it’s set up to keep you from ever reaching the starting line.
6. Rent prices keep rising while wages stay stuck in the past.
Housing is supposed to be a basic need, but in today’s economy, it’s a profit engine—and renters are getting squeezed. Landlords raise prices faster than incomes grow, often just because “the market allows it.” Meanwhile, tenants are stuck paying more for the same four walls, with little to no protection or recourse. And forget about saving for a home—if rent eats half your paycheck, what’s left?
Wages, especially for working-class and service jobs, haven’t kept pace with inflation or housing costs in decades. That’s not a coincidence—it’s the result of policy choices that favor real estate investors and corporate landlords over everyday people. In cities across the country, renters are spending 40–60% of their income just to keep a roof over their heads. And while profits climb, your bank balance stays flat. Struggling to keep up isn’t failure—it’s exactly how the system’s designed.
7. Emergency expenses can wreck your finances in a single day.
Car repair, medical bill, broken phone, vet visit—take your pick. One unexpected expense, even just a few hundred dollars, can unravel someone’s entire budget. And yet, the system acts like everyone should have an emergency fund ready to go. Spoiler: most people don’t. Not because they’re irresponsible—but because there’s nothing left after covering the basics.
The problem isn’t poor planning. It’s low wages, high costs, and a complete lack of safety nets. Meanwhile, payday lenders, high-interest credit cards, and shady installment loans are waiting to “help” with terms that only make things worse.
The moment you hit a bump in the road, the system doesn’t slow down to help—it speeds up to collect. And for people living on the edge, it’s a fast slide into debt they didn’t ask for and can’t afford to escape.
8. Wealth-building tools are locked behind gatekeeping and fine print.
Sure, there are ways to build wealth—retirement accounts, investment portfolios, tax-advantaged savings plans—but good luck accessing them without a guidebook. The financial system is full of jargon, hidden rules, and complex paperwork that keep everyday people overwhelmed and outsiders in the dark. And while the rich have financial advisors and tax pros, everyone else is left to Google their way through it.
Want to invest? Better know the difference between a Roth and traditional IRA. Trying to buy a home? Hope you’ve got perfect credit, thousands saved, and an understanding of lending loopholes. These systems aren’t impossible to navigate—they’re just intentionally complicated. Confusion keeps people passive. And passivity keeps the wealth gap right where it is. When financial literacy is treated like a privilege instead of a public tool, the game stays rigged.
9. Health care and debt collection go hand in hand in the U.S.
In many countries, getting sick doesn’t mean going broke. In the U.S.? It absolutely can. Medical bills are one of the leading causes of debt—and they often show up when you’re least equipped to deal with them. Even with insurance, deductibles, copays, and surprise charges stack up fast. And once you miss a payment? It’s off to collections.
This isn’t a glitch in the system—it’s the system. Hospitals overbill, insurance companies deny coverage, and collections agencies profit off your stress. It’s a setup that turns illness into a business opportunity. And the emotional toll is just as real as the financial one. Being sick shouldn’t mean risking your credit score, your savings, or your mental health. But under this system, it does—because your body is treated like a financial liability, not a human experience.
10. The system profits most when you stay one step behind.
Every late fee, interest charge, loan extension, and bounced payment is a revenue stream for someone else. The financial system isn’t built to help you get ahead—it’s built to keep you just close enough to hope, but far enough away that you stay dependent. The more you struggle, the more money it makes. And the second you start to catch your breath? Another charge, rate hike, or setback pushes you back under.
This is what financial precarity looks like by design. You’re encouraged to “build credit,” “invest in your future,” and “buy assets”—but only within a system that profits from your confusion, desperation, and lack of time. It’s not a conspiracy—it’s capitalism functioning exactly as intended. And until that system changes, breaking free isn’t just about discipline. It’s about recognizing the trap you were never meant to escape from.