That could very well be "could not afford to save, even when the economy was good."


I'm always amused by the number of people who are not aware that everyone is not as well off as they are. A huge slice of America saves nothing each week, because they have nothing to put in the bank. They drive POS cars that need work all the time, because they can't afford a better car. And they bought that POS because they couldn't afford a car in better mechanical shape. They can't fix everything on the car because they have to feed themselves, their kids, their family, pay the electric bill, pay rent because they can't afford to buy.

And why must it be assumed that these people's credit cards are "all maxed out"? The people you are talking about do not have credit cards, because they can't afford the minimum monthly payments. That's right, some of these people don't have $20 left at the end of the month to pay on a credit card balance.

How are legal expenses an emergency?

Now, as you were.

:blunt:

or in kidney?

It's all I could afford.

I'm trying to figure out if this is a judgement or just a statement of fact.

My late FIL used to call it "the high cost of poverty"

Well said Digr. I lived that life for about a decade. I couldn't take it anymore and changed my ways and my life. Even while living paychecks to paychecks (3 jobs) I still was borrowing to make ends meet and to feed my family. I bartered anything and everything I could. Its not living.

That's an excellent description.

Right now I could raise it. But that's only because Dad left some money. Before he died, the only way I could have raised it would have been by borrowing off him.

There have been times in my life where I've had decent cash coming in, but never a sustained period. I have generally spent far more time living on the margins of the economy where, frankly, saving was not an option. Living cheap, is a much less cost effective way to live, you get less for your money.

I'd like to see the savings rate plotted with the interest rate in the average savings account. I'm a saver but saving money is a losing proposition.

First, one has a credit card, does not use it, and therefore has no monthly payments. Or one only uses a credit card for amounts that can pay off that month. Either way, the credit card is that emergency $2000.

The argument is valid, but subjective. Do you describe most of the 50%? Or well less than 1%? A problem with all these assumptions is one glaring problem. No hard numbers.

I don't believe most of the 'on the edge' cannot have any credit cards. A credit card that you have and do not use can cost nothing. I would suspect a significant number of that 'on edge' 50% has foolishly used credit cards. It would explain why they enrich the richest with their 20+% interest charges on outstanding balances. And therefore cannot afford any savings.

But again, that is only suspicion based in a lack of any hard numbers. We really do not know why that 50% is close to which edge. And, unfortunately, the article does not even define 'edge'. Does not even define how many Americans have credit cards.
The article implies an American public that is living on large cash flows and few real assets. It is how AIG, GM, Lehman Bros and so many other financially irresponsible companies also lived. It only implies this is worse than ever before. But provides no numbers to make that conclusion. It only suggests a serious problem that has been deteriorating.

Meanwhile, saving numbers in the chart strongly suggest American financial stability has seriously deteriorated.

Do you believe more than 50% of this nation cannot have any credit card? I suspect that is not true. Anybody can afford a credit card by not using it. Then an emergency $2000 fund exists.

Many companies are canceling credit cards if they are not used and/or the credit rating of the consumer does not meet their standards.

Google is your friend and this has been happening for at least 4 years. Its the "If you don't use it, you lose it" plan

Unrelated statistic - "37% of families are still paying off a credit card they cancelled. "

That statistic doesn't surprise me, even if it's not completely proven. I don't know too many people who could come up with 2k without blinking an eye. I know we'd have trouble doing it right now although we'd manage.

I have to say that over the last couple of years, the cost of living here has gone up so much it's just impossible to find the right words to describe it. We're on an above average household income, and yet we're finding we can't save at all anymore, so we're in the midst of making some major changes to how we live. One of those is sacrificing the quality of the food we eat. When you're paying $10/kg for bell peppers, and $6/kg for carrots it's becoming impossible to eat healthy as in, to afford to buy enough fruit and veges to allow everyone their recommended daily intake, which is a guide and the teenagers in our house would eat more than that at the moment. That's not even including buying things like milk and bread and some kind of protien. Fortunately for us, we suppliment that by fishing, but it's still out of control.

I know this isn't america, but it's still a western country.

Why Creditors Close Inactive Accounts
some links here ...

I wouldnt say many are cancelling cards.

I would say it is primarily Capitol One, which also wont accept new customers with high credit ratings and a history of paying off charges monthly and not having any interest or penalty payments.

If I'm in jail, it's an emergency.

P.s. Capitol One is teh debbil.