#FinancialStress #ImprovingEconomy #FinancialStrains
We hear the economy is improving.
We also hear that companies can’t fill jobs, when just a few short years ago, they were laying people off in droves.
Yet, many are suffering financial distress.
“A growing number of low- and middle-income households are plagued by high debt and have little or no savings,” writes Paul Davidson for USA Today. “The financial strains have especially worsened for those near the bottom of the income ladder,” Davidson continues.
Davidson, whose article on the subject was also published April 19, 2018, in The Atlanta Journal-Constitution, quotes a UBS study that says some households could fall behind on loan payments, reduce their spending and slow or even undercut a buoyant U.S. economy for the first time since the Great Recession officially ended in 2009.
In other words, the economic news we hear isn’t telling the whole story.
Though the study focuses on lower-income households, other households, whose income was just fine prior to the recession, have yet to recover. The job they now have pays less than the jobs they lost. The manageable debt they had with the higher-paying job is less manageable now.
The article quotes a Bankrate.com survey that says rents are soaring. One in five working Americans aren’t saving any income, the survey says. Average rents have jumped 30 percent nationally since 2010, the article quotes RealPage.
In other words, paychecks have grown much more slowly than expenses.
What to do, if you’re in this predicament?
Perhaps moving is not an option. More than likely, if you are having trouble paying your rent, your search for cheaper accommodations will be futile, since the studies indicate that rising rents is a universal problem.
A second job? Chances are your first job already extracts too much from you for too little compensation, and the thought of getting a second job, even as a temporary measure, is unappealing. Besides, the second job probably won’t give you the extra financial cushion you need, and will just take more of your time away from your family, or things you like to do.
So what is the solution? Perhaps, instead of a second job, you could check out one of the many ways to make extra money without having to get another traditional W-2 job. To examine one of the best such vehicles – one that could also help you save money on some household expenses – message me.
It’s been said that a rising (economic) tide will lift all boats. It’s also been said that building an economy from the bottom up, is better for everyone than building from the top down.
However you look at things, be it the economy as a whole or your life in particular, you can’t count on someone, or something, to solve your problems, if you are having problems.
You have to look for things YOU can do to make your life better. It’s great to set goals, but they will not be reached without action on your part.
Sometimes, all it takes is meeting someone who can show you a way out that you hadn’t noticed, or thought about, before.
If such a person comes into your life, don’t ignore him or her. See what he or she is offering, and whether it is right for you.
Peter
Tag Archives: loans
COLLEGE DEBT CRUSHING MANY STUDENTS
#CollegeGraduates #CollegeDebt #CollegeStudents
One graduate has resorted to selling her eggs to help infertile women.
She is one of many college graduates who have huge college debt and not enough income to easily pay it off.
Her story and others were relayed by Kala Kachmar of the Asbury Park (N.J.) Press in an article also published in the May 8, 2016, edition of The Tennessean in Nashville as part of its USA Today supplement.
About $2 million borrowers bear a $1.3 trillion loan burden, the headline reads.
“Who wants to live at home at 29? I don’t. But, luckily, I can. … I shouldn’t be living paycheck to paycheck,” the article quotes Christyn Gionfriddo of Neptune, N.J.
Let’s examine what has happened. We have gotten constant messages for decades that to get a good job, one needs a good education – a college degree. Colleges and the government have made it easier for students of all income levels to get into college.
Some of the vehicles used to facilitate students getting into college involve loans that students are not obligated to begin repaying until after graduation.
In theory, this plan works if students can convert their educations into a good-paying job.
That doesn’t always happen.
Therefore, students are graduating with huge debt that may be difficult to repay, if their incomes can’t support it.
Some, in fact, will try to avoid repaying it.
What’s a young person to do?
First, determine in your high school years, whether college is right for you.
It’s certainly a nice goal to have EVERYONE get a college degree, but today’s economics require a more in-depth thought process for each student.
Ask yourself, if you go to college, what is the goal when you graduate? What kind of income will you be likely to earn with your degree? Will you need loans to get through school? What is the likelihood of you getting a job in your chosen field immediately after graduation? Will it be enough for you to live a decent life, and pay off your debt?
If you’ve determined that college is worthwhile enough to borrow money for, then watch your spending while in school. You may have to forgo some good times, get a part-time job and otherwise be somewhat miserly. Watch every dime you spend and make sure it is worthwhile.
If you determine that college may not be right for you, don’t fret. There are other ways to make an income without having to worry about what kind of job you have. For one of the best, visit www.bign.com/pbilodeau. You’ll see people of all income and education levels spending less, and potentially earning enough to pay off any debt promptly.
In short, don’t view going to college as an automatic decision. Don’t view your education as an interlude to be young, boisterous and have a good time. Because, when you grow up, there could be a big debt welcoming you to adulthood.
Colleges don’t care what happens to you once you get out. But you should take that into account before deciding whether to go to college.
Peter