There’s a very expensive secret that wealthy people rarely talk about. It’s called the poverty premium.
In economics, this means things can cost more when you have less money. Think about it: if you can buy toilet paper in bulk at Costco, you might pay about 50 cents a roll. But if you can only afford a four-pack at the corner store, you might pay closer to a dollar a roll. You’re basically paying an extra tax for being broke.
But lately, this has moved from the grocery store to your phone. There’s a whole world of apps—some even in the top 10 in the app store—that are built to pull fees, data, and interest from people who are already struggling. They make money when you lose money.
I’m talking about apps that trick you into selling your online safety for pennies. Apps that charge “tips” that act like high interest. And shopping apps that keep you stuck in debt.
Today, we’re going to audit your phone. We’re going to look at specific apps you should delete right now if you have them. I’ll also show you the math on how they keep you broke. And I’ll give you safer, real alternatives you can try instead.
So, let’s get into it.
This is a transcript of our video. You can watch the full video on our YouTube channel: Low Income Relief.
Instacart And The Third-Party Delivery Trap
The first one might surprise you. This wasn’t on my list until a few days ago. I’m talking about Instacart and the third-party delivery trap.
Yes, delivery is expensive. We all know about the service fees. But that’s not what I mean.
I’m talking about hidden markups.
Reports from Consumer Reports and other news outlets say the price in the app is often higher than the shelf price. That gallon of milk that costs $3 in the store might show up as $4 or $5 in the app.
And here’s what’s even worse: you may not be paying the same price as someone else. A recent study said Instacart puts people into groups, and each group can see different prices. So you might pay more than your neighbor for no good reason.
If you haven’t seen that study, I’ll link it in the description. It was really interesting.
Now, I get it. If you’re low income, you may not have a car. You may need delivery. But this new “prices change by user” thing acts like a hidden tax.
If every item is marked up 15%, and then you add a service fee, delivery fee, and tip, you could end up paying way more. You might pay $150 for $100 worth of food. Over a year, that can turn into thousands of dollars—just for the privilege of eating.
If you need convenience, try the grocery store’s own app instead. Use the Walmart app, the Kroger app, or the Target app. Look for curbside pickup, or their own delivery. It’s often cheaper. Many big stores also say the online price matches the in-store price.
Cut out the middleman and shop from the source.
Also, please remember: many food banks offer delivery now, too. You may have more options than you think.
Honeygain
Next up is an app that really bugs me. Influencers push it because it promises free money and “passive income.”
It’s called Honeygain.
They say, “Download this app. Let it run in the background. We’ll pay you for your unused internet.”
That sounds good, but ask yourself: Why are they paying you? What are they getting from you?
The answer is in their terms. Their website says they pay about $1 for every 10 gigabytes you share.
When you install this, you turn your home Wi-Fi into a kind of “tunnel” that other people can use. Strangers—this company’s business clients—can run their internet traffic through your connection.
Honeygain says they check their clients. But the truth is, these kinds of tools can be used for sketchy stuff. Things like ad fraud, getting around location blocks, or sneaker bots.
If someone uses your connection for something illegal or suspicious, you could be the one who gets blamed.
Some users say Netflix or Hulu flags their IP address as a bot. And sure, it’s annoying if you can’t stream a show. But imagine trying to log into your bank and getting blocked because your connection looks suspicious.
And if something goes wrong, Honeygain limits what they’ll cover. Their terms cap liability at $100. That’s not much protection.
At the end of the day, you’re trading your online safety for maybe $10 to $15 a month. In my opinion, that’s not passive income. That’s a security risk waiting to happen.
If you disagree, tell me in the comments. I’m sharing what I personally won’t use. I wouldn’t install this, and I wouldn’t trust it. I want to keep you safe.
But if you’ve had a good experience, I’d honestly love to hear it.
Earned Wage Access Apps
Number three is a group of apps: earned wage access apps like Earnin, Dave, or Brigit.
These apps act like they’re the good guys. They say, “We’re not payday loans. We don’t charge interest.”
And technically, they may not charge interest. But they charge tips, rush fees, and other charges. Your bank account still feels it.
Let’s do simple math.
Say you need $100 for a week to buy groceries. The app says, “Leave a $5 tip.” Then it says, “Want it faster? Pay a $4 express fee.”
Now you paid $9 to borrow $100 for 7 days.
If you turn that into yearly interest, it can be over 400% APR. That’s worse than many credit cards, and it’s right up there with payday loans.
And the real danger is the cycle.
They take $109 out of your next paycheck right away. Now your next check is short. Most of us can’t afford that. So what happens? You borrow again. And again. And you end up paying hundreds a year just to access your own money.
If you work for a big company or you’re in a union, ask HR if they have an official pay advance system. Some places—like Walmart—offer this for free.
If not, try a credit union. Ask about a payday loan alternative. Those are federally capped at 28% APR. It’s not free, but it’s way cheaper than 400%.
Buy Now, Pay Later For Food
Number four is a dangerous shift in how people buy food. I’m talking about buy now, pay later apps—especially when people use them for things they’ll eat right away.
If you use a service like Affirm to buy a laptop for school at 0% interest, I get it. That can make sense. A laptop is an asset.
But now these pay-later options are built into apps like DoorDash, Instacart, and even pizza chains.
I’m not a financial adviser, but here’s a common-sense rule: don’t borrow money for things you’re going to eat before you even finish paying for them.
If you split a $40 pizza into four payments of $10, the pizza is gone tonight—but you’re still paying for it weeks later.
That can lead to a debt spiral. Next month, you’re paying for last month’s pizza, plus this month’s groceries. Your future paychecks get smaller and smaller.
It also separates the “pain” of paying from the “fun” of buying. And that is a proven way to stay broke long term.
As much as it hurts, I’ve learned the hard way: if you can’t pay cash for something, you probably can’t afford it. I’m still digging out of debt because I made that mistake too many times.
Credit One Bank
Number five is a master of disguise: Credit One Bank.
If you look at their logo, it looks a lot like Capital One. That’s not an accident. They want you to confuse them with a better bank.
Credit One—and other subprime cards like Premier or Surge—are what I call fee harvesters. They target people with bad credit who are trying to rebuild.
Here’s the trap.
They often charge an annual fee right away—like $75 to $99—as soon as you open the card. So if your limit is $300, you might start out owing $100 right off the bat.
Then they may charge monthly maintenance fees just to keep the account open. They can also charge fees to raise your credit limit. There are fees everywhere.
You can end up paying hundreds of dollars just to hold a piece of plastic.
Ask me how I know. I’ve had these cards before.
A better option is often a secured credit card from a major issuer like Discover or Capital One, or from a local credit union.
I am loving my local credit unions right now. They’ve helped me so much.
With a secured card, you put down a deposit—often around $200. But you usually don’t get hit with monthly fees. After about a year of good payments, you might get your deposit back, and they may upgrade you to a normal card.
So please don’t fall into the fee traps if you’re rebuilding.
Real Money Gambling Gaming Apps
Number six is another group: real money gambling gaming apps like Skillz and Jackpocket.
These apps prey on desperation. They try to tell you that if you’re “good enough” at solitaire or bingo, you can win rent money.
That is a lie.
These are casinos in your pocket—often with fewer rules and less protection.
I’ve seen claims that some games give you “near misses,” where you lose by one point. That can trigger a dopamine rush and make you think, “I can win next time. I just need to bet a little more.”
And apps like Jackpocket can also charge service fees on top of the cost of the ticket.
The lottery is already a tax on the poor. Paying a service fee to play the lottery is a tax on a tax.
If you’re low income, the only winning move is not to play.
Stop Using Cash App As Your Bank
Number seven: please, I am begging you—stop using Cash App as your bank.
Cash App is great for sending $20 to a friend for lunch. But it’s terrible for holding your rent money.
Cash App is a fintech company, not a bank. Yes, they have partner banks. But their customer service is often automated.
If a scammer drains your balance, getting a real person can be very hard. Getting your money back can take weeks or even months.
Real banks and credit unions usually have fraud departments you can call 24/7. They have physical branches you can walk into.
When you’re living paycheck to paycheck, you can’t afford to have your money frozen by an algorithm. That can be a disaster.
Final Thoughts
As you can see, this system is built to be expensive for the people who can least afford it. You already know life is too expensive.
But now that you can see the poverty premium, you can start avoiding it.
Delete the fee harvesters. Ignore the 400% “loans.” Protect your data.
And if I missed any predatory apps, or you disagree with me, tell me in the comments. I love talking with you.
