One-third of America is on the threshold of financial disaster

[Donald Polish]

The real economical disaster you must have heard about but are afraid to discuss.
Thirty-seven percent of Americans have credit card debt that equals or is greater than their emergency savings, according to a new survey, leaving them “teetering on the edge of financial disaster.”
A poll of more than 1,000 adults in the United States by Bankrate.comfound that about 24 percent of Americans have more credit card debt than emergency savings, while another 13 percent have neither credit card debt nor emergency savings.
“Not only do most of them not have enough savings, they’ve all used up some portion of their available credit — they are running out of options,” said Greg McBride, Bankrate.com’s chief financial analyst.
The 30 to 49 age group are in the most peril, with 32 percent of respondents reporting that they have credit card debt higher than their emergency savings. Twenty-five percent of those aged between 50 to 64 said the same, as did 21 percent in the 18 to 29 age bracket and 14 percent of those 65 and up.
As a 2014 survey by American Express reported, emergencies are more frequent than many would like to think. Half of Americans who responded to the survey had to deal with a fairly major unforeseen or emergency expense in the past year. Forty-four percent said the expense was health related, while 46 percent said it was for a car repair.
"People don't have enough money for unplanned expenses, and if they have more credit card debt than emergency savings, it's a double whammy," McBride said. "In the event of unplanned expenses, their options are limited."
Despite the discouraging numbers, more Americans are better off this year than in 2014, the Bankrate survey found. About 58 percent said they have more emergency savings than credit card debt, compared with 51 percent last year.
With effects of the Great Recession still lingering for many, and with decades of stagnant wage growth in several key work sectors, Bankrate’s McBride said that putting a priority on saving has not been “a high enough priority for American households."
It is our tradition to live in debts. All the American economy fully depends on borrowings and external debts.
Debts are becoming American style of life indeed.
But if the system falls down citizens will suffer.

 

[BluesLegend]

One-third of America is on the threshold of financial disaster

So. I guess they shouldn't have followed the governments example of spending money they don't have and piling up debt.

 

[initforme]

As wages decrease and workers are asked to make less in wages this will only increase. The middle clas is too big and there is a plan to shrink it down. And the plan is working to perfection. But at least the 1 percent is doing well... better than ever.

 

[Rozman]

I used to go to the supermarket once a month and ended up spending nearly $100.00 and I put it on a credit card...
And I carried a balance...Then car repairs on an older car because I didn't have the money for another car....
A trip to the mechanic was always $500-$700...Again a hit on a credit card....

Before I knew it I had maxed out all my cards.

Car insurance....$400.00 a month...charge it...
There is only so much money coming in and it's never enough.
It's easy to charge shit.
Not so easy to pay it off...
I tried to arrange a better interest rate and the banks said I am paying the rate I should be paying....No help there.

I have no idea how a family gets by without charging everything on a credit card.

 

[initforme]

Families are not brining in enough no matter how much they work... therefore they have to charge things or not eat, etc. Since you only live once, you either struggle or charge it. The REAL story of working America.

 

[Teddy Pollins]

It is also interesting that a third of Americans have no retirement savings, including 20% from age 50-64.
It would be nice if a personal finances and responsibility class was part of the required curriculum for all high school and college students. As it stands now, I guess I just have to get used to having an old fart behind the counter at the Quick Mart making change for me when I retire.

 

[initforme]

Perhaps wages are simply too low. If I had to choose between having and doing without, I'd charge too. Why live in squalor and without?

 

[PaintMyHouse]

The real economical disaster you must have heard about but are afraid to discuss.
Thirty-seven percent of Americans have credit card debt that equals or is greater than their emergency savings, according to a new survey, leaving them “teetering on the edge of financial disaster.”
A poll of more than 1,000 adults in the United States by Bankrate.comfound that about 24 percent of Americans have more credit card debt than emergency savings, while another 13 percent have neither credit card debt nor emergency savings.
“Not only do most of them not have enough savings, they’ve all used up some portion of their available credit — they are running out of options,” said Greg McBride, Bankrate.com’s chief financial analyst.
The 30 to 49 age group are in the most peril, with 32 percent of respondents reporting that they have credit card debt higher than their emergency savings. Twenty-five percent of those aged between 50 to 64 said the same, as did 21 percent in the 18 to 29 age bracket and 14 percent of those 65 and up.
As a 2014 survey by American Express reported, emergencies are more frequent than many would like to think. Half of Americans who responded to the survey had to deal with a fairly major unforeseen or emergency expense in the past year. Forty-four percent said the expense was health related, while 46 percent said it was for a car repair.
"People don't have enough money for unplanned expenses, and if they have more credit card debt than emergency savings, it's a double whammy," McBride said. "In the event of unplanned expenses, their options are limited."
Despite the discouraging numbers, more Americans are better off this year than in 2014, the Bankrate survey found. About 58 percent said they have more emergency savings than credit card debt, compared with 51 percent last year.
With effects of the Great Recession still lingering for many, and with decades of stagnant wage growth in several key work sectors, Bankrate’s McBride said that putting a priority on saving has not been “a high enough priority for American households."
It is our tradition to live in debts. All the American economy fully depends on borrowings and external debts.
Debts are becoming American style of life indeed.
But if the system falls down citizens will suffer.

My wife likes the line where Donald Trump is walking with his daughter and they pass a guy living on the street. That poor man she says, and Trump says, well don't pity him, he has more money than we do. All Trump had at that point were assets and debt, and the assets were worth less than the debt. Welcome to capitalism boys.

 

[occupied]

One-third of America is on the threshold of financial disaster

So. I guess they shouldn't have followed the governments example of spending money they don't have and piling up debt.

I guess they shouldn't have been born in a country where consumer debt has replaced wage growth, no fucking way to live the American dream without owing your soul to the company store, so to speak.