It's a cycle.
People on assistance often don't have enough money to cover food, rent, and basic living costs. Many pawn whatever they own just to get through the month—often their phone, sometimes even their ID for $10 or $15.
When their cheque arrives, much of it goes to paying interest, never mind having enough to reclaim those items. Then they're right back where they started.
The following month will be even tighter.
Some turn to panhandling. Some are sexually exploited. And some simply give up.