Back when we owned rental homes, we consistently had tenants who could never pay their rent. However, they always had enough money to buy all the cigarettes and beer or wine that they wanted. I have never understood how priorities could be that misplaced. Smh...
ECON Millions of Americans one paycheck away from economic disaster
- Thread starter Doomer Doug
- Start date
jward
passin' thru
I see the agenda, especially now, as being an effort to counteract Trump's stellar economic numbers, particularly with minorities. What is unemployment in black and hispanics.... Lowest EVER! Hell of a nice perk from that racist orange man eh.
As per hispanics and repo, no idea what those stats are. Id not be surprised to learn that utter unfamiliarity with having hard assets played some tiny piece of it. And absolutely, there's still all the cultural plastic people who are chasing appearance and living beyond their means.
jward
passin' thru
You seem annoyed today- do they have bears in AL with a propensity for stepping on thornes, perhaps?
How long has it been since the economic numbers were not a freaking lie, based on Fed funny money?
I assume the unemployment rate improvement in the minority community is documented, as the Dems would
love it to not be true, and would knock it down if they could.
Racing22
Crew Chief
That last piece is VERY telling.. The front edge of the Boomers have already entered retirement age, the mid point of that wave is like 62.
If over HALF of Boomers can't make it to next payday (and have nothing saved), this country is SCREWED...
Can you say MAJOR retirement crisis in the future!
Profit of Doom
Dismember
A little tidbit on how to save money and be prepped on food as well.
http://www.ezekieldiet.com/400-30-day-emergency-food-supply-for-4-from-sams-and-wal-mart/
http://www.ezekieldiet.com/400-30-day-emergency-food-supply-for-4-from-sams-and-wal-mart/
How long has it been since the economic numbers were not a freaking lie, based on Fed funny money?
Oh, I don't know - pick a date, any date. 1913? 1933? 1964? 1971? They all mark milestones on the road that has gotten us to where we are now. And we are still adding deficit at 1.2 trillion PER YEAR. But this road DOES NOT go on forever like the one in the song.
https://www.youtube.com/watch?v=S0_oE5c-VAg
CHRIS REA - TEXAS
RT 05:11
(1989)
You seem annoyed today
Yeah, I get a little bit peckish from time to time. Some days I am just not fit to be around. Worse days are likely coming. Which is what bothers me.
Oh, I don't know - pick a date, any date. 1913? 1933? 1964? 1971? They all mark milestones on the road that has gotten us to where we are now. And we are still adding deficit at 1.2 trillion PER YEAR. But this road DOES NOT go on forever like the one in the song.
https://www.youtube.com/watch?v=S0_oE5c-VAg
CHRIS REA - TEXAS
RT 05:11
(1989)
You seem annoyed today
Yeah, I get a little bit peckish from time to time. Some days I am just not fit to be around. Worse days are likely coming. Which is what bothers me.
Racing22
Crew Chief
Hey, I think I might have found out why... Take a look at the top of each one of your posts, you might see something I see... there's a number in the top right of each one, see it says "67,XXX....
Just a helpful suggestion, maybe a few hours outside enjoying the fresh air, instead of in front of the keyboard "every waking moment" could be beneficial for you... I'm just here to help!!!
The doom and despair here on a daily basis will kill ya... 
Here's a screen grab for your help:
Attachments
jward
passin' thru
You seem annoyed today
Yeah, I get a little bit peckish from time to time. Some days I am just not fit to be around. Worse days are likely coming. Which is what bothers me.
Well if you're hangry type peckish, we've got unlimited
If you're troubled by something else entirely, I recommend our alternative health, religion, or funny pet video archives. If none of that helps, my ace in the hole solution's fresh sun dried sheets and a good long doze after making a mental list of all those reasons you've to feel gratitude.
Whatever the issues, I wish you blue skies and warm breezes.
Yeah, I get a little bit peckish from time to time. Some days I am just not fit to be around. Worse days are likely coming. Which is what bothers me.
Well if you're hangry type peckish, we've got unlimited
If you're troubled by something else entirely, I recommend our alternative health, religion, or funny pet video archives. If none of that helps, my ace in the hole solution's fresh sun dried sheets and a good long doze after making a mental list of all those reasons you've to feel gratitude.
Whatever the issues, I wish you blue skies and warm breezes.
Dog:
If you lend me $200,000 to buy a house at 5% interest, then that first month I owe you 5% divided by 12 equals .00461 interest on that $200,000 you loaned me. That comes to $833.33 that I owe you in interest that first month. If this is spread over 30 years then I will pay $240 towards principal that first month.
Interest payment will go down by about a $1 a month and the principal will go up about $1 a month for the first few years. Then it will change by $2 a month for a few years then $3 a month and then finally $4 a month towards the end of the 30 years. But the key point is that you are receiving that .00461 per month on the remaining amount I owe to you that was agreed to when you loaned me the $200,000 to buy that house.
It would not be fair to you the lender, for me to pay you less than the interest rate we agreed to when you loaned me the money.
hiwall
Has No Life - Lives on TB
Plus it is a contract that was agreed upon by both parties. Either party could have said "no deal" before the contract was signed. Thank goodness that we have banks that are willing to loan money to people to buy homes. Just think how few would own a home if there were no banks.
Josie
Has No Life - Lives on TB
Part of the problem is that many people have trouble differentiating between necessities and wants. Food, shelter, clothing, power, maybe transportation (depending on where you live) are necessities for living. The latest cell phone, manicures, Netflix, gaming systems, entertainment tickets, etc. are more of the wants...things you can survive without but make life more enjoyable.
Also, the OP doesn't take into account how much people are now required to pay into a healthcare system that they can't use unless there is a major catastrophe in their lives.
Also, the OP doesn't take into account how much people are now required to pay into a healthcare system that they can't use unless there is a major catastrophe in their lives.
Correct...
However, the good news is, you can shorten the length of the loan significantly (assuming your mortgage contract allows paying ahead) by paying even an extra couple hundred bucks more than your amortization table requires *on the principal" every month, especially in the beginning. Unfortunately, that is usually the period when most people (especially young ones just starting out) don't have any extra. But, as we've discussed earlier in the thread, it's rare for people to not have *any* extra that coukd be used to pay down principal... if you can take the $600 a month you're spending at Starbucks and apply it to your mortgage principal for the first 10 years, you may be able to take a 30 year mortgage and pay it off in 20...and cut your total interest expense by 50%.
Why they don't teach this stuff in schools, rather than the assorted gender confusions and social justice crap is beyond me... unless they want the peons to be dumb and broke.
Summerthyme
SouthernBreeze
Has No Life - Lives on TB
"dumb and broke", and totally dependent on the government for their livelihoods.
Racing22
Crew Chief
I think you made a mistake in your first sentence. Usually, on a 30 year loan, more goes to INTEREST the first year versus principal. Later in the pay down, more goes to principal.
Doesn't have to be law, that already exists. Just take a shorter loan, like 15 years, and more of the payment goes to principal.
Yep I did sorry about that people and thanks for pointing that out , I got is exactaly back words.
Yes, a mortgage is a bad economic deal, but renting doesn't build any equity, although you save the interest.
Profit of Doom
Dismember
One might wonder how our economy would look without our entire banking system and it’s constant inflation and growing debt, national and personal. If we could not create these mortgages, would houses cost so much? Specifically, would the lots cost so much? It’s nothing but dirt, the only value is the ability to put a house on it that anchors a half a lifetime of debt.
Milk-maid
Girls with Guns Member
I grew up very poor too... a family of 10... very small portions to eat and all of us crammed into 2 bedrooms. My mother was the grand budgeter. She figured everything down to the penny. I've said this before, but I feel like I've lived through the great depression.
I know this may sound excessive, but I save string, boxes, envelopes, bubble wrap, paper and other things. Things my grandma did, because she actually did live through the great depression. When you've been poor, seeing others throwing valuable things out just to buy new, looks criminal.
There are times in my life that I was there again and didn't like the feeling of having no control. So for years I put myself and hubby on an austerity budget and scrimped and saved to pay everything off; the house, cars, everything! We didn't go out to eat, we didn't buy new clothes, no vacations unless it was at home. We repaired everything to make it last longer. Had our vehicles over 20 years each. We had one almost 30 years.
That austerity budget got us to the other side of debt. Not having a house or car payment is the most freeing thing I've ever experienced.
I've figured out what the necessities cost and the average month's cost is $400. We can save money now and buy whatever we want. (Our needs are simple.) We still put money into savings each month...and I feel it is very important to have an emergency savings (not in the bank either)
I like being able to help others. So we donate a lot to the Food Bank.
You can't easily do this when you are deep in debt and a slave to the man. Or living paycheck to paycheck.
Just my .02
Milk-maid
Girls with Guns Member
Cash or money from their checking account?
TammyinWI
Talk is cheap
So with Trump is ok, he gets a free pass. The train can't be turned around anyway, it is picking up speed and heading for a cliff. But he said that he would do it, in so many words...he made many lofty, wonderful promises.
When we were younger we lived pretty much paycheck to paycheck, but apart from the mortgage I don't recall carrying any debts. Our first house payment was $86.00/month, including taxes and insurance. We lived quite well on our limited income, although we didn't spend a lot on extras. No cable even available at the time, so we watched local stations on a used black and white tv. T here was a meat market in the neighborhood where we could get three pounds of Delmonico steaks for $3.95, so we bought some once a month, and on Fridays we could enjoy a steak.
I look back fondly on those simpler times; we had less but enjoyed it more. Does that make sense?
I look back fondly on those simpler times; we had less but enjoyed it more. Does that make sense?
Racing22
Crew Chief
Well, that's not quite accurate. True, you're not gaining any equity, but you're definitely paying interest with renting, but not yours, you're paying the landlord's interest on HIS house loan, but you're NOT getting the mortgage interest deduction (or property tax deduction) on your taxes, he is.
China Connection
TB Fanatic
Um, here in Australia Sydney has seen below of recent. So most have lost between $50 to $100 thousand dollars in the last year.
Falls in prices varied across Sydney regions. The Ryde region recorded the biggest drop, with the median home price decreasing 13.3 per cent for the year.
Prices fell by 10.9 per cent in the Canterbury-Bankstown area and in the Sutherland Shire, while in the Hills area the falls were similar at 10.8 per cent.
Parramatta values dropped an average of 10.8 per cent and inner west values by 8.8 per cent.
Sydney areas with a long pipeline of new housing projects could record even bigger falls in prices over the year ahead, Mr Kusher said.
https://www.news.com.au/finance/rea...s/news-story/04e81bedb4de966a6a06fa837a1c656d
Falls in prices varied across Sydney regions. The Ryde region recorded the biggest drop, with the median home price decreasing 13.3 per cent for the year.
Prices fell by 10.9 per cent in the Canterbury-Bankstown area and in the Sutherland Shire, while in the Hills area the falls were similar at 10.8 per cent.
Parramatta values dropped an average of 10.8 per cent and inner west values by 8.8 per cent.
Sydney areas with a long pipeline of new housing projects could record even bigger falls in prices over the year ahead, Mr Kusher said.
https://www.news.com.au/finance/rea...s/news-story/04e81bedb4de966a6a06fa837a1c656d
This started out as a typical SJW pity thread and quickly morphed into one where many TB2Kers were replying with wise financial common sense.
Realize this. The most common shtf that you are going to face is not global war, national upheaval, or the hoards from the city, or even a nationwide financial collapse.
It's going to be your own financial collapse, up close and personal, and life will go on as normal for everyone else while just your world falls apart.
Prepare for that by being financially wise and safe and leading a healthy life, and you will automatically be prepared for a lot of the other crap we like to fantasize and dream about.
I'd love to see a doomer story about something like that.
Very wise advice, and you are right, most people are full of self pity for their lot in life and don't realize that their lack of financial self discipline is the reason they're where they're at. Ive read the Tightwad Gazette and have done some of those things. Dave Ramsey is great. "Live today like no one else so you can live tomorrow like no one else".
The Millionaire Next Door is also a good book with sound advice. Another old first printing book from a long time ago,that gives advice on going from being debt ridden to financial independence is "Your Money or Your Life". It talks about the unnecessary things people buy called gazingas and when is enough, enough. It talks about how much money has passed through your hands in your entire life and what you have to show for it. It talks about realizing the true wage of your hourly employment and how we trade the limited hours of our life for sometimes stupid crap.
The biggest mistake a lot of new landlords make is that they don't accurately figure in these costs when setting the rent price. They either learn quick or go out of business.
It's also important that landlords learn what type of house makes a good rental.
Realize this. The most common shtf that you are going to face is not global war, national upheaval, or the hoards from the city, or even a nationwide financial collapse.
It's going to be your own financial collapse, up close and personal, and life will go on as normal for everyone else while just your world falls apart.
Prepare for that by being financially wise and safe and leading a healthy life, and you will automatically be prepared for a lot of the other crap we like to fantasize and dream about.
I'd love to see a doomer story about something like that.
Very wise advice, and you are right, most people are full of self pity for their lot in life and don't realize that their lack of financial self discipline is the reason they're where they're at. Ive read the Tightwad Gazette and have done some of those things. Dave Ramsey is great. "Live today like no one else so you can live tomorrow like no one else".
The Millionaire Next Door is also a good book with sound advice. Another old first printing book from a long time ago,that gives advice on going from being debt ridden to financial independence is "Your Money or Your Life". It talks about the unnecessary things people buy called gazingas and when is enough, enough. It talks about how much money has passed through your hands in your entire life and what you have to show for it. It talks about realizing the true wage of your hourly employment and how we trade the limited hours of our life for sometimes stupid crap.
^^^ The root of most people's financial problems condensed into a nutshell. Probably also applies to other areas of their life such as health and sickness.
My own belief is that a home with land is the only thing you should ever take a loan to buy once you have your financial house in order.
People need to sit down with an amortization table print out, or one of those online amortization programs that let you add a few bucks to each month's payment. You will be amazed at how much you can shorten the term of your loan and save thousands in interest just by paying a little extra each month/or year.
Again, just my own belief, but you should never buy a home you can't pay off in 10 years or less by making extra payments on principle. And never ever get a mortgage that will not let you pay extra on the principle each month. Most people find it easier to throw a few hundred extra a month at the mortgage than extra thousands in an extra yearly payment.
You hit the nail on the head on this one. Renters mostly don't realize they are paying the landlords principle, interest and taxes as well as repair costs, management fees and a profit for the owner. If they weren't, the landlord wouldn't be renting the house for that price.
The biggest mistake a lot of new landlords make is that they don't accurately figure in these costs when setting the rent price. They either learn quick or go out of business.
It's also important that landlords learn what type of house makes a good rental.
West
Senior
YES!
After losing everything twice....its really not so bad
Down sizeing has it's big pluses. One can be held down by to much stuff.
Many so called assets are more of a liability sometimes. Do know the real fact that one can even be land rich but tax poor.
Yes anyone can get seriously ill, although some people (hell myself included with diabetes) are a major causative factor in their own illnesses.
But, I do grant you that events can pile up one on top of the other to make it impossible to overcome.
Anyone can get hit by a beer truck when they step off the curb, and the ever popular "all skill is in vain when an angel pisses in the touchhole of your musket" comes to mind.
Life isn't always fair and sometimes we are destined to lose. Be it our health, our fortunes, or our very life. There are no absolute guarantees, but one can do a lot to sway the odds in their favor.
Yes around half the bankruptcies are related to medical things, but a good portion of those medical related bankruptcies are aided and exacerbated by NOT having good medical insurance, or being already living financially on the edge and not having adequate savings, or just plain not taking good care of yourself.
Again it's a matter of odds. Most people are relatively healthy during their younger years where they can least afford the expensive health insurance plans or large savings accounts as backups. Fortunately good health in younger years works to their advantage most of the time.
Again, life isn't always fair and sometimes your going to lose and die.
Once we reach middle and older years, we have a responsibility and have had the time to be better prepared, since most of us are almost certain to have medical issues. Hell I stayed in the Navy in order to have a reliable retirement and also a lifelong health care plan. Now I'm fully retired with military and two state retirements, 2 social security incomes for my wife and myself, Medicare and Tricare for healthcare and ExpressScripts for meds.
Those programs provide what I and my wife consider adequate level of healthcare. Could some exotic and expensive medical issue come up that isn't paid for? Sure, and it might kill me, but as I said, nothing in life is guaranteed. I am prepared for that and have no illusions that I'll get the same kind of health care as asshole john mcstain got for his brain cancer, or that Bill Gates would get if he gets sick. That's life. We all need to live AND die within our means.
This idea that life can knock you down, and therefore prepping and saving and investing and planning are pointless is what really bothers me.
Hell, the whole idea of bankruptcy bothers me. People are cheating others out of money they legitimately owe to others when they go bankrupt.
Don't even get me started on repeat bankruptcy filers. Over 15% of bankruptcies are people who have filed multiple times. How many chances should you get to cheat others out of what you legitimately owe?
As I said before, a good portion, not all, but a good portion of medical bankruptcies are exacerbated by the person not being financially responsible in many different ways.
Also now days the average age of those filing for bankruptcy has increased.
Today, the average filer is older and married, has a high school education and makes less than $30,000 a year.
If you are older and make less than 30K a year, you are either incompetent or a slacker.
As we get older, we should try to plan for the things that inevitably happen to us.
Our health will fail, we will be limited in what we can physically and maybe even mentally do. If you're edging towards retirement and are still paying on a house or worse yet a car, you're not prepared. If you are still struggling to maintain a huge house or a big farm because you didn't anticipate getting old, you failed. Not society.
That being said, if you know the pitfalls and odds, still roll the dice, and are prepared to live with the outcome of your level of preparedness, and not demand other people pick up the pieces and pay for your mistakes or misfortune, then I'm okay with that and have no beef with you.
That's what we all do and those are the chances we all take. It's part of life.
Blacknarwhal
Let's Go Brandon!
Here's where you lost me, at least until you add "you live in an economically depressed area" or maybe "you work in a field that fluctuates in demand". Lot of reasons to not make over 30K that aren't "you're a loser."
West
Senior
Plus I'll add that there is hundreds of thousands of men and I'm sure many women who have been black listed with spousal support or other income levies and they have just said screw it, and only make enough to survive maybe $15k a year in income can lower ones court ordered levies to a few hundred dollars a month.
Also many profeshional tradesmen and businessmen/women are early bloomers who get burnt out, add a frivolous law suit, or claim etc... about half way threw their careers. It can kill them in stress.
The stresses of running a payroll alone for decades and a frivolous lawsuit or comp claim, etc.. make a businessman physical sick as they pay out three plus times in total payroll liabilities than they take home with just a few employees.
Just saying.
PghPanther
Has No Life - Lives on TB
Our whole economy...........hell..civilization itself is based on having enough energy to implement a consumption society based on growth.
That is not sustainable on a finite planet but more of the immediate problem is if humans stop consuming the engine of growth and society comes to a stop.
and we get beat over the head day after day to consume.........
This is particularly troubling for families because of the nag factor of children that marketers exploit............imagine having 3 children who want their own iPhones with data usage..........what a huge expense that society has conditioned children to see as a must have life support system.
George Carlin once description consumption in our society as "buying things we don't need with money we don't have."
There is a lot of truth to that.........
On top of that most people don't create a budget let alone maintain it in their personal life..........
When I was unemployed and had to watch every penny I spent I developed a monthly budget and always knew to a penny what was in my checking account and balance on my credit card at all times (which I always pay off in full every month)...........and matched up those running totals to my monthly budget allocations on a day by day basis.
When I found employment I kept those same parameters in place and found them being the key to not only staying in budget but to saving money as well.
That is not sustainable on a finite planet but more of the immediate problem is if humans stop consuming the engine of growth and society comes to a stop.
and we get beat over the head day after day to consume.........
This is particularly troubling for families because of the nag factor of children that marketers exploit............imagine having 3 children who want their own iPhones with data usage..........what a huge expense that society has conditioned children to see as a must have life support system.
George Carlin once description consumption in our society as "buying things we don't need with money we don't have."
There is a lot of truth to that.........
On top of that most people don't create a budget let alone maintain it in their personal life..........
When I was unemployed and had to watch every penny I spent I developed a monthly budget and always knew to a penny what was in my checking account and balance on my credit card at all times (which I always pay off in full every month)...........and matched up those running totals to my monthly budget allocations on a day by day basis.
When I found employment I kept those same parameters in place and found them being the key to not only staying in budget but to saving money as well.
You go to where it's not economically depressed. You change careers. It's called adapt and survive. It's what allowed our ancestors to survive.
Of course we can choose to keep doing what we do, or living where we do, BUT we have to be prepared to live with the consequences and not feel sorry for ourselves.
.
I can't tell you how so very many people bemoan their state in life that is entirely due to decisions they made and choose to stubbornly refuse to change.
Now if you are aware that your career choice isn't going to make you rich....
If you prefer to live where you are in spite of a poor area economy....
That's your own business.
BUT you made that decision fully aware of the consequences and one should be prepared to live with the results. To expect otherwise is to ignore reality.
Yes, the level of financial sophistication that many people have is abysmal.
We have created a society that is so safe that it protects people from themselves and their own stupid mistakes.
As a result people don't learn the discipline and behaviors that they need to learn in order to survive and cope with reality. That's why so many are able to live in their own private fantasy land and act so surprised when life finally smacks em upside the head.
Blacknarwhal
Let's Go Brandon!
Uh huh. So how exactly do you get money to move--you need money to move, you know--if you can't actually make that much more money than you need to live on where you are?
PghPanther
Has No Life - Lives on TB
Rather than finding reasons not to............seek opportunities instead.
Example.......I was in that situation, no money, horrible area to live.........I studied the best areas of the US to relocate to and then started reaching out to everyone and anyone about my goals...................
I ended up moving to my #1 area because of a friend who knew a friend there that let me stay for free in an empty apartment they had...........within 6 months I had a good job and was out of the place on my own.....within 10 years I had made more money than I had in 40 years living in the old economically depressed place I moved from.
There are always reasons to excuse risk.............but few seek out and leverage everything they can to exploit it to their advantage......
I have found that when you are down on your luck but willing to do what it takes that people actually like to help and give breaks to people like that..........
Your attitude and willingness to follow through will encourage people to do the same with you...............
Excuses are depressing for other people in dealing with you.......so don't give them reason to feel depressed and you will find doors open instead.
Blacknarwhal
Let's Go Brandon!
I'm thinking more here about the folks who work at Walmart or the like because it's all there is.
Doomer Doug
TB Fanatic
It seems things are worse here in the USA than even I thought. Granted, it has always been about both debt and consumer consumption. What passes for the Trump economy is a debt based stock scam, just like Obama's and Bush junior, and Clinton's were.
The link is below
https://www.zerohedge.com/news/2019-06-01/nearly-25-americans-are-using-debt-pay-necessities-food
Nearly 25% Of Americans Are Using Debt To Pay For Necessities Like Food
Profile picture for user Tyler Durden
by Tyler Durden
Sat, 06/01/2019
Authored by Mac Slavo via SHTFplan.com,
Even though we are told the economy is doing great, all the evidence shows that main street Americans are struggling more and more every day. A recent report claimed that the costs of goods have risen to the point that 25% must use debt to pay for necessities, such as food.
According to a new Experian report that came out last week, Americans have an average of $6,506 in credit card debt. But some expenses are weighing much more heavily on the credit cards of the average American…
Necessities, like food and rent, are being put on credit cards. A full 23% of Americanssay that paying for basic necessities such as rent, utilities, and food contributes the most to their credit card debt, according to a new survey of approximately 2,200 U.S. adults that CNBC Make It performed in conjunction with Morning Consult. Another 12% say medical bills are the biggest portion of their debt. Medical bills additionally likely contribute to the purchases of food on a credit card.
This news isn’t shocking unless you believe the mainstream media’s glorification of the false “recovery” we’ve experienced since the Great Recession of a decade ago. American households have taken on historic levels of debt, which will crush them in the next economic downturn.
Everyday expenses continue to rise, and as the shadow inflation increases, it also threatens to wipe out the middle class – what’s left of it anyway. In fact, middle-class life is now 30% more expensive than it was 20 years ago, according to a separate report by CNBC. The cost of things such as college, housing, and child care has risen precipitously: Tuition at public universities doubled between 1996 and 2016 and housing prices in popular cities have quadrupled, Alissa Quart, author and executive director of the Economic Hardship Reporting Project, tells CNBC Make It.
Alissa Quart, the executive editor of the Economic Hardship Reporting Project, examines the lives of many middle-class Americans who can now barely afford to raise children. Through gripping firsthand storytelling, Quart shows how our country has failed its families. Her subjects—from professors to lawyers to caregivers to nurses—have been wrung out by a system that doesn’t support them, and enriches only a tiny elite. – Squeezed: Why Our Families Can’t Afford America
It has become common to rely on debt, live above one’s means, and spend more than is made. The Federal Reserve’s money printing policy isn’t helping either, as its goal is to enrich themselves and the political elite that continues to allow the top few to impoverish the rest of America. Central banks have become the evil fire which government officials fan the flames of.
But, there has been a bit of a lack of personal responsibility running through most of the country as well. Americans spend an average of $483 a month on non-essentials such as dining out, entertainment, luxury items, and vacations, Schwab’s 2019 Modern Wealth report found. Debt reduction is a key to preparing for the next recession: which will happen, the only question is “when?”
There are several ways to reduce your debt, but it will likely require cutting spending on unnecessary things and saying no to expensive dinners in restaurants. Debt reduction is a gargantuan task, but it can be done.
In fact, credit card companies have been given more leeway in order to collect debts recently. Future Money Trends‘ James Davis suggests you avoid this by simply avoiding debt.
This is an unfortunate change to the rules, however, experiencing a call from a debt collector can be avoided by avoiding debt in the first place. When you borrow someone else’s money and do not repay it as you originally stated in the contract, you will be bothered and harassed. People are going to want their money back, and debt collectors honestly don’t care much whether you have it.
Avoiding debt also allows one to invest their own money and live a more financially free lifestyle – with zero chance they will be harassed by a debt collector who wants their money back. A debt is a liability and only by having as few liabilities as possible will one see their net worth rise and their personal wealth increase. – James Davis, Future Money Trends
Copyright ©2009-2019 ZeroHedge.com/ABC Media, LTD
The link is below
https://www.zerohedge.com/news/2019-06-01/nearly-25-americans-are-using-debt-pay-necessities-food
Nearly 25% Of Americans Are Using Debt To Pay For Necessities Like Food
Profile picture for user Tyler Durden
by Tyler Durden
Sat, 06/01/2019
Authored by Mac Slavo via SHTFplan.com,
Even though we are told the economy is doing great, all the evidence shows that main street Americans are struggling more and more every day. A recent report claimed that the costs of goods have risen to the point that 25% must use debt to pay for necessities, such as food.
According to a new Experian report that came out last week, Americans have an average of $6,506 in credit card debt. But some expenses are weighing much more heavily on the credit cards of the average American…
Necessities, like food and rent, are being put on credit cards. A full 23% of Americanssay that paying for basic necessities such as rent, utilities, and food contributes the most to their credit card debt, according to a new survey of approximately 2,200 U.S. adults that CNBC Make It performed in conjunction with Morning Consult. Another 12% say medical bills are the biggest portion of their debt. Medical bills additionally likely contribute to the purchases of food on a credit card.
This news isn’t shocking unless you believe the mainstream media’s glorification of the false “recovery” we’ve experienced since the Great Recession of a decade ago. American households have taken on historic levels of debt, which will crush them in the next economic downturn.
Everyday expenses continue to rise, and as the shadow inflation increases, it also threatens to wipe out the middle class – what’s left of it anyway. In fact, middle-class life is now 30% more expensive than it was 20 years ago, according to a separate report by CNBC. The cost of things such as college, housing, and child care has risen precipitously: Tuition at public universities doubled between 1996 and 2016 and housing prices in popular cities have quadrupled, Alissa Quart, author and executive director of the Economic Hardship Reporting Project, tells CNBC Make It.
Alissa Quart, the executive editor of the Economic Hardship Reporting Project, examines the lives of many middle-class Americans who can now barely afford to raise children. Through gripping firsthand storytelling, Quart shows how our country has failed its families. Her subjects—from professors to lawyers to caregivers to nurses—have been wrung out by a system that doesn’t support them, and enriches only a tiny elite. – Squeezed: Why Our Families Can’t Afford America
It has become common to rely on debt, live above one’s means, and spend more than is made. The Federal Reserve’s money printing policy isn’t helping either, as its goal is to enrich themselves and the political elite that continues to allow the top few to impoverish the rest of America. Central banks have become the evil fire which government officials fan the flames of.
But, there has been a bit of a lack of personal responsibility running through most of the country as well. Americans spend an average of $483 a month on non-essentials such as dining out, entertainment, luxury items, and vacations, Schwab’s 2019 Modern Wealth report found. Debt reduction is a key to preparing for the next recession: which will happen, the only question is “when?”
There are several ways to reduce your debt, but it will likely require cutting spending on unnecessary things and saying no to expensive dinners in restaurants. Debt reduction is a gargantuan task, but it can be done.
In fact, credit card companies have been given more leeway in order to collect debts recently. Future Money Trends‘ James Davis suggests you avoid this by simply avoiding debt.
This is an unfortunate change to the rules, however, experiencing a call from a debt collector can be avoided by avoiding debt in the first place. When you borrow someone else’s money and do not repay it as you originally stated in the contract, you will be bothered and harassed. People are going to want their money back, and debt collectors honestly don’t care much whether you have it.
Avoiding debt also allows one to invest their own money and live a more financially free lifestyle – with zero chance they will be harassed by a debt collector who wants their money back. A debt is a liability and only by having as few liabilities as possible will one see their net worth rise and their personal wealth increase. – James Davis, Future Money Trends
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