App will advance some of your paycheck for free

Posted at 6:33 AM, Jun 29, 2017
and last updated 2017-06-29 16:02:36-04

SAN DIEGO (KGTV) - The expenses for living in San Diego keep rising, and a new study shows nearly half of American workers aren't making enough every month to cover their expenses.

"I just hustle, that's what you do," said North Park resident Lily Corredor, who has a 10-month old daughter. "End-of-the-month hustle; pick up shifts if you have to, sell things if you have to."

Corredor is a waitress and her husband's a musician, and she fears their days in San Diego might be numbered.

Now, an app called Activehours can help San Diegans like Corredor get access to cash for free. The app, which asks for tips, works with any worker that receives a direct deposit. It will advance someone up to $500 per pay period, with a daily $100 limit.

Jon Baumunk, a finance lecturer at San Diego State University, said there could be some risk of getting into bad habits.

"You may also be creating a long-term problem in that instead of becoming dependent upon your paycheck and living paycheck to paycheck, now suddenly you might be living advance to advance," he said.

Baumunk also noted Activehours could be making money with your highly personal information, such as how much you make.

Active Hours spokeswoman Katie Austin said the company doesn't sell data.

"We use data to help us go directly to people, instead of having to partner with employers one by one," she said. "We're truly community supported. People want to be able to use the app tomorrow. So, they support us today."

Corredor, who hadn't heard of the app, said she hopes her discipline, such as not spending a lot of money around North Park, keeps her family there for years to come.