> Plus sometimes sudden unexpected costs happen, and you cannot wait another week to slowly save up for it, you need that money now.

If unexpected costs happen currently, you either have the money or you don't and have to wait - the situations are the same.

(Upfront payment - Have the money? Great. If not, wait until next payment. Daily payments - Have the money? Great. If not, wait)

> I'd rather not humiliate these people any further and make it even harder for them to lead a dignified life

(FWIW, I live on benefits due to medical issues) How is this undignified? If anything, it's one less thing to worry about (I've occasionally forgot about payments and ended up having ~zero money left just after a payment. A rolling income would at least mean I get money for essentials pretty much immediately)