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Home / Finance News / More than Half of US Families Living Paycheck-to-Paycheck

 

Although economic times are improving from those experienced during the recent Great Recession, many American families are still under a tight budget. In fact, The Pew Charitable Trusts showed that 55% of American households could not replace one month of their salary through liquid savings. Erin Currier, the director of Pew’s financial security and mobility project, went further to state that even families with higher income salaries are not financially stable and are less likely to experience upward mobility.

This financial volatility has carried over into vehicle installment contracts where recent data from Experian Automotive showed an increase in installment contracts of 61 to 72 months. Furthermore, data also shows an increase in 73 and 84-month contracts. Attempts to explain American financial uncertainty focused on a decrease in wage-growth trends when comparing this past decade to the two decades spanning 1979-1999. Additionally, large fluctuations in family income, a decrease in household spending, and a lack of liquid savings have been identified as major contributors to American financial insecurity. With the help of families understanding their own limitations, and policymakers directing focus on asset accumulation, American families can gain back lost confidence on overall financial situations.

Read the full article here:
http://www.autoremarketing.com/subprime/55-percent-us-households-live-paycheck-paycheck

 

About the author: Taylor

 

Taylor Brown is the founder of Repaid.org. He has paid down 90% of his credit card debt through smart budgeting, frugal-living, and inspiration/support from other personal finance bloggers.

 

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  1. Pingback: Americans Can't Keep Up With The Cost Of Living - Repaid.org

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