posted on behalf of Bill Abrams, President of Trickle Up
Building savings is one of the most viable financial strategies for the very poorest, who live on less than $1 per person per day. With a safe place to save, the women and men whom Trickle Up serves can create a hedge against crop failure, address health concerns before they worsen and assert more control over their finances. Savings and the formation of savings groups are a critical first step out of poverty that helps the very poor access credit, ultimately helping the poor build sustainable livelihoods.
What do you think are the potential advantages/disadvantages of this type of credit?