China Posted May 26, 2019 Share Posted May 26, 2019 Nearly 25% of Americans are going into debt trying to pay for necessities like food American have an average of $6,506 in credit card debt, according to a new Experian report out this week. But which expenses are adding to that balance the most? A full 23% of Americans say 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. That makes sense, given that day-to-day costs continue to soar. Middle class life is now 30% more expensive than it was 20 years ago. 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. It’s now common to be just scraping by. A majority of Americans have less than $1,000 in savings and more than 70% of U.S. adults say they’d be in a difficult situation if their paycheck was delayed by a week, according to a survey of over 30,000 adults conducted by the American Payroll Association released in September. Click on the link for the full article Link to comment Share on other sites More sharing options...
Springfield Posted May 26, 2019 Share Posted May 26, 2019 What about necessities like (MOD edited) (MOD comment - let’s keep it clean people). Link to comment Share on other sites More sharing options...
China Posted May 26, 2019 Author Share Posted May 26, 2019 20 hours ago, Springfield said: What about necessities like my **** Link to comment Share on other sites More sharing options...
Bozo the kKklown Posted May 26, 2019 Share Posted May 26, 2019 We are living in a corporatist, right-wing hellscape. Link to comment Share on other sites More sharing options...
CousinsCowgirl84 Posted May 26, 2019 Share Posted May 26, 2019 They say, but are they being honest with themselves.... I’m sure it is true for some people who are just above the poverty line but the government provides food stamps and public housing so i don’t think the numbers add up. ”Tuition at public universities doubled between 1996 and 2016 and housing prices in popular cities have quadrupled,“ Neither of those items are necessities. Vocational school is a suitable substitute for universities and you can choose to live in a less “popular” city. They seem irrelevant to the story... the article brings up tuition payments several times, like they are important... There are more things to buy (and are being bought) now than at any point in history. Netflix, mobile phones like the iphone and samsung models, food delivery, uber, online micro transactions, video games for practically every device you own, a nice bag of weed... And the companies offering those services make bank and at the end of the day you get basically nothing in return. Im sorry, but i think it is way more likely people are going to debt as a result of those things that as a result of things they actually need. People convince themselves they need the internet, but that is not true. While it’s true you need access to the internet, there are plenty of places where it is free to get online. People convince themselves they need a mobile phone, so they buy a super nice one that their friends can be proud of, but all they really need is a cheap flip phone. Im sure there is a percentage of people who are really struggling to meet basic needs, but it’s not 25 percent of all americans. Americans have beeen tricked into believing their wants are needs and rights by focus groups and marketeers. Link to comment Share on other sites More sharing options...
Sacks 'n' Stuff Posted May 26, 2019 Share Posted May 26, 2019 20 hours ago, Springfield said: What about necessities like my **** Did you post this thinking you might just catch somebody off guard and in the right mood where they’re juvenile, underdeveloped brain would find this humorous? If so, congratulations. I’m still laughing. Link to comment Share on other sites More sharing options...
Mooka Posted May 26, 2019 Share Posted May 26, 2019 5 minutes ago, CousinsCowgirl84 said: While it’s true you need access to the internet, there are plenty of places where it is free to get online. People convince themselves they need a mobile phone, so they buy a super nice one that their friends can be proud of, but all they really need is a cheap flip phone. Im sure there is a percentage of people who are really struggling to meet basic needs, but it’s not 25 percent of all americans. Americans have beeen tricked into believing their wants are needs and rights by focus groups and marketeers. This sounds awfully judgmental on your average American. Those focus groups and marketers aren't just aimed at your average Joe, they're aimed at his job, at his local/federal government, at his children's school, at his doctor's office, at his insurance company, the way he pays his taxes, transportation, his MONEY, etc etc etc etc Link to comment Share on other sites More sharing options...
China Posted May 26, 2019 Author Share Posted May 26, 2019 47 minutes ago, CousinsCowgirl84 said: ”Tuition at public universities doubled between 1996 and 2016 and housing prices in popular cities have quadrupled,“ Neither of those items are necessities. Vocational school is a suitable substitute for universities and you can choose to live in a less “popular” city. They seem irrelevant to the story... the article brings up tuition payments several times, like they are important... There are more things to buy (and are being bought) now than at any point in history. Netflix, mobile phones like the iphone and samsung models, food delivery, uber, online micro transactions, video games for practically every device you own, a nice bag of weed... And the companies offering those services make bank and at the end of the day you get basically nothing in return. Im sorry, but i think it is way more likely people are going to debt as a result of those things that as a result of things they actually need. Im sure there is a percentage of people who are really struggling to meet basic needs, but it’s not 25 percent of all americans. Americans have beeen tricked into believing their wants are needs and rights by focus groups and marketeers. Did you look at the graph? Those things (needs like food vs. discretionary spending) are separated out. https://infogram.com/top-contributors-to-debt-1hke609wypz165r Obviously it's not all americans, as would be impossible for them to poll the entire country. Presumably there is some error range in their results which is not listed. Link to comment Share on other sites More sharing options...
twa Posted May 26, 2019 Share Posted May 26, 2019 The graph is of little use w/o other financials and details. Food like eating out?... or groceries at walmart? clothing and entertainment can similarly be very different things. most go in CC debt because they cannot budget or have self discipline Link to comment Share on other sites More sharing options...
CousinsCowgirl84 Posted May 26, 2019 Share Posted May 26, 2019 2 hours ago, Mooka said: This sounds awfully judgmental excellent. Put me down as someone who judges. 2 hours ago, Mooka said: Those focus groups and marketers aren't just aimed at your average Joe, they're aimed at his job, at his local/federal government, at his children's school, at his doctor's office, at his insurance company, the way he pays his taxes, transportation, his MONEY, etc etc etc etc Yes, yes? Link to comment Share on other sites More sharing options...
Skinsfan1311 Posted May 26, 2019 Share Posted May 26, 2019 IMHO, a lot if it is people getting their "needs" and "wants" confused...... Link to comment Share on other sites More sharing options...
China Posted June 2, 2019 Author Share Posted June 2, 2019 Life is more expensive than it was for older generations: American millennials have an average net worth of $8,000 — and it's part of a bigger financial problem the generation is facing American millennials are financially worse for the wear. They have an average net worth of less than $8,000, Abha Bhattarai of The Washington Post reported, citing a new Deloitte study. According to the study, the net worth of Americans ages 18 to 35 has decreased by 34% since 1996, making them "dramatically financially worse off" than older generations, Business Insider's Kate Taylor reported. These findings underscore previous research indicating that millennials are financially behind. Millennials are less wealthy than previous generations were at their age at any point between 1989 and 2007, according to The Economist, which cited a recent paper by the Brookings Institution. Median household wealth was roughly 25% lower for those ages 20 to 35 in 2016 than it was for the same age group in 2007. Meanwhile, a report by the Federal Reserve published in November found that millennials have much less money than Gen Xers and baby boomers had at their age: "Millennials are less well off than members of earlier generations when they were young, with lower earnings, fewer assets, and less wealth," the study said. According to the Deloitte study, compared from 2007 to 2017, millennials are spending 16% more on housing, 26% more on food costs, 21% more on healthcare costs, and 65% more on education. The latter is a particularly big burden. Student debt has increased 160% since 2004, the study found. And college tuition has more than doubled since the 1980s, according to Student Loan Hero. Consequently, millennials have taken on at least 300% more student debt than their parents, according to Michael Hobbes of HuffPost. Click on the link for the full article Link to comment Share on other sites More sharing options...
tshile Posted June 3, 2019 Share Posted June 3, 2019 On 5/26/2019 at 9:50 AM, China said: Did you look at the graph? Those things (needs like food vs. discretionary spending) are separated out. I read the subheading before it: ”Most debt is derived from spending on extras” seems to support what I mostly see. Most people I’ve worked with have that problem, but also have a problem of not managing or tracking their finances at all. Simply adding their accounts to Mint (or similar program), letting it download everything, and setting up a few reports usually shows them where all their money is going. They’re usually shocked how much they’re just wasting outright or “wasting” on things they like but didn’t realize the total expense over a year and decided they needed the extra money more than the service (now that they know how much they’re spending) i wish they kept a running tab on **** people pay for and don’t use. Like a Hulu account that’s been active for 2 years but no ones even logged in for 6 months. Etc Link to comment Share on other sites More sharing options...
China Posted July 17, 2019 Author Share Posted July 17, 2019 All the ways Gen X is financially wrecked While millennials garner much of the negative press around financial issues — they live with their parents because they can’t get jobs! They spend all their money on avocado toast! — Gen Xers may be the ones who are really in trouble. “Gen Xers now have the highest average debt burden of any generation,” according to a study released this month by LendingTree. “They increased their average debt burdens by about 10%, or $11,898, between 2016 and 2019, thanks to steady dollar increases across all debt categories.” What’s more, they may be less likely than others to do something about that: Just 16% of Gen Xers say that they included financial planning in their 2019 goals, according to a recent survey from Allianz Life. That’s compared with 27% of millennials. And when asked what 2019 resolution they were most likely to make, and to keep, just 38% mentioned managing money better and saving more; meanwhile 50% of millennials said that. That lack of planning and goal-keeping could make a bad situation worse — as Gen X may already be financially worse off than other generations in a number of ways. They’ve got the most credit card debt of anyone yet still spend more than anyone on non-essentials. Members of Gen X have higher levels of credit card debt — which tends to carry a higher interest rate than most other debt — than other generations. Indeed, credit card debt levels peak between the ages of 45-54 at $9,096, with the second highest levels of debt being or those who are 35-44 at $8,235. Meanwhile, the under 35 set has just $5,808. “Millennials and individuals over 74 years old held the least credit card debt. These two groups are also among the least likely to have a credit card, which can serve as a potential explanation behind the trend we are seeing here,” ValuePenguin explains of their data. Despite their sky high credit card debt, Gen X spends big on non-essentials, according to data released in 2018 from finance site Bankrate.com. Indeed, “Gen Xers (ages 38-53) spend $3,473 annually on restaurant food, prepared beverages and lottery tickets, the most of any generation,” the report reveals. Meanwhile, millennials spend just $2,758. “For the average American, a few thousand dollars may not sound like a lot to spend each year on dining out and other financial vices,” said Amanda Dixon, a Bankrate analyst. “However, if a Gen Xer was to invest that $3,473 a year for 10 years at an 8% return, they would end up with just over $50,000 that could go toward their retirement savings or their child’s college fund.” They’re woefully undersaved for retirement. “While Generation X continues to struggle with saving and spending, millennials — although not without their own unique financial challenges — seem better positioned for retirement than their closest predecessors. Median retirement savings for Gen X is only $35,000, the same median amount as millennials, despite Gen Xers being much closer to retirement,” according to a study of 3,000 Americans by Allianz Life. Having just $35,000 in retirement savings — especially when you’re a Gen Xer ages 37- 51 — is not even close to enough. Fidelity recommends that by age 40 you have three times your salary saved for retirement. Gen Xers may be so under-saved thanks to the competing financial demands of children — the Census Bureau estimates that will set parents back roughly $245,000 through age 18 — and caring for aging parents. Their average debt now tops $150,000. Click on the link for the full article Link to comment Share on other sites More sharing options...
NoCalMike Posted July 17, 2019 Share Posted July 17, 2019 Stop telling me the economy isn't roaring and fantastic. Just look at the stock market and then tell me the every day man can't afford groceries. It makes no sense! Link to comment Share on other sites More sharing options...
PleaseBlitz Posted July 17, 2019 Share Posted July 17, 2019 I had a chance to listen to CFPB Director Kraninger speak at a luncheon today. She brought up this study by the Federal Reserve: https://www.federalreserve.gov/newsevents/pressreleases/other20180522a.htm Quote Four in 10 adults, if faced with an unexpected expense of $400, would either not be able to cover it or would cover it by selling something or borrowing money. This is an improvement from half of adults in 2013 being ill-prepared for such an expense FORTY PERCENT of adults could not cover an unexpected $400 expense without selling something or going into debt. 40%. Link to comment Share on other sites More sharing options...
China Posted July 17, 2019 Author Share Posted July 17, 2019 56 minutes ago, PleaseBlitz said: I had a chance to listen to CFPB Director Kraninger speak at a luncheon today. She brought up this study by the Federal Reserve: https://www.federalreserve.gov/newsevents/pressreleases/other20180522a.htm FORTY PERCENT of adults could not cover an unexpected $400 expense without selling something or going into debt. 40%. Whenever I see stats like that I wonder what these people do when they need car repairs. They probably put of repairs as long as possible and then wonder why they have to buy a new car every 5 years, leaving them constantly making car payments. Link to comment Share on other sites More sharing options...
twa Posted July 18, 2019 Share Posted July 18, 2019 My CC debt was fine till I pissed off my wife. Even I was impressed at that bill Link to comment Share on other sites More sharing options...
Renegade7 Posted July 18, 2019 Share Posted July 18, 2019 2 hours ago, China said: Whenever I see stats like that I wonder what these people do when they need car repairs. They probably put of repairs as long as possible and then wonder why they have to buy a new car every 5 years, leaving them constantly making car payments. Most people I know that cant afford $400 car repair couldn't afford the maintenance to prevent it nor afford not to have a car, which is how they got in that situation in the first place. In some places you dont need a car, but in some places it's not realistic not to have one whether you can afford it or not. Been there, done that. If we're going to have this conversation then mass transit has to be taken more seriously. This post screams of folks in Virginia Beach saying they dont want the light rail from Norfolk to the Oceanfront, and its typically people that have cars without issue that say that. Link to comment Share on other sites More sharing options...
China Posted July 18, 2019 Author Share Posted July 18, 2019 2 minutes ago, Renegade7 said: Most people I know that cant afford $400 car repair couldn't afford the maintenance to prevent it nor afford not to have a car, which is how they got in that situation in the first place. In some places you dont need a car, but in some places it's not realistic not to have one whether you can afford it or not. Been there, done that. If we're going to have this conversation then mass transit has to be taken more seriously. This post screams of folks in Virginia Beach saying they dont want the light rail from Norfolk to the Oceanfront, and its typically people that have cars without issue that say that. Yeah, this country is notoriously bad at supporting public transit, and rail in particular (I'm talking about high speed rail). Link to comment Share on other sites More sharing options...
Renegade7 Posted July 18, 2019 Share Posted July 18, 2019 1 minute ago, China said: Yeah, this country is notoriously bad at supporting public transit, and rail in particular (I'm talking about high speed rail). Agreed, remember having a job in Yorktown that afford my first apartment that if I lost my car, theres no way possible I coulda kept it and continued going to college. Seven cities in Hampton Roads and only one has light rail, that connects itself to its damn self Link to comment Share on other sites More sharing options...
dfitzo53 Posted July 18, 2019 Share Posted July 18, 2019 15 hours ago, China said: Whenever I see stats like that I wonder what these people do when they need car repairs. They probably put of repairs as long as possible and then wonder why they have to buy a new car every 5 years, leaving them constantly making car payments. Often it's put it on a credit card or take a payday loan and dig themselves deeper. I don't talk about finances in depth with coworkers, but I get the impression that many of them are in this boat. Link to comment Share on other sites More sharing options...
PleaseBlitz Posted July 18, 2019 Share Posted July 18, 2019 15 hours ago, China said: Whenever I see stats like that I wonder what these people do when they need car repairs. They probably put of repairs as long as possible and then wonder why they have to buy a new car every 5 years, leaving them constantly making car payments. 13 hours ago, Renegade7 said: Most people I know that cant afford $400 car repair couldn't afford the maintenance to prevent it nor afford not to have a car, which is how they got in that situation in the first place. In some places you dont need a car, but in some places it's not realistic not to have one whether you can afford it or not. Been there, done that. If we're going to have this conversation then mass transit has to be taken more seriously. This post screams of folks in Virginia Beach saying they dont want the light rail from Norfolk to the Oceanfront, and its typically people that have cars without issue that say that. I think the point of the Fed study isn't to make people wonder "what do they do when things happen." I think the point of the study is to make people realize that these unexpected expenses (whether car related or otherwise) are inevitable and a very significant portion of the population is very very ****ed when they happen. What people do far too often is take out a usurious short term loan from a payday lender or a car title lender, which then more often than not puts them in a debt spiral and ****s them even more. Relevant: The Trump administration recently nixed a proposed rule that would make those types of loans less likely to destroy people financially: https://www.npr.org/2019/02/06/691944789/consumer-protection-bureau-aims-to-roll-back-rules-for-payday-lending Quote The Consumer Financial Protection Bureau is targeting one of the hallmarks of the Obama administration: a rule that would protect the most vulnerable borrowers from the ballooning debt that can accrue with payday loans. The rule never actually took effect. And now the consumer protection bureau is proposing to take it off the table. The agency's chief, Kathy Kraninger, said in a statement that pulling back the rule would encourage competition in the payday lending industry and help improve credit options for borrowers in need. Critics say the consumer protection bureau is siding with the very industry it is supposed to regulate and is scrapping a rule that would have protected borrowers from skyrocketing interest rates. Link to comment Share on other sites More sharing options...
Bozo the kKklown Posted July 18, 2019 Share Posted July 18, 2019 18 hours ago, China said: Yeah, this country is notoriously bad at supporting public transit, and rail in particular (I'm talking about high speed rail). 18 hours ago, Renegade7 said: Agreed, remember having a job in Yorktown that afford my first apartment that if I lost my car, theres no way possible I coulda kept it and continued going to college. Seven cities in Hampton Roads and only one has light rail, that connects itself to its damn self Blame the oil industry and the Koch Brothers. They have successfully fought off public transit initiatives. Link to comment Share on other sites More sharing options...
TheDoyler23 Posted July 18, 2019 Share Posted July 18, 2019 I can't be poor. It's too expensive. Link to comment Share on other sites More sharing options...
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