According to a report by the Federal Reserve Bank of New York in a February 2019 Washington Post article:
A record 7 million Americans are 3 months behind on their car payments, a red flag for the economy...When car loan delinquencies rise, it is usually a sign of significant duress among low-income and working-class Americans.
Car being repossessed. Image courtesy Wikipedia/Ruben de Rijcke [CC BY-SA 3.0
Rising Cost of Living
vs
Household Income
Business Friendly
vs Worker Friendly Government
Six-month
Emergency Funds
are M.I.A.
Paycheck to Paycheck
causes major
amounts of stress
The cost of living keeps rising however household income has not kept up at the same pace.
Unfortunately this creates a detrimtental imbalance with no end in site. It's like constantly playing a game of catch-up that you cannot win.
According to an article in The Guaridan, "It is no coincidence that all three branches of the federal government, as well as most state governments, have become more “business-friendly” and less “worker-friendly” than at any time since the 1920s..."
Fiancial experts agree that an emergency fund, preferably at least six months is needed to cover unexpected expenses and emergencies - anything from car or house repairs, dental emergencies, etc.
Living paycheck to paycheck means you can't save for emergencies.
According to the American Psychological Association, (APA), "...money continues to be a top cause of stress for Americans."
This has a negative impact on relationships in addition to the fact that many people are putting their health-care needs on hold because of financial concerns.
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