Finance and the credit crunch: are USA families being pushed too far?
In the USA there are an average of 17.1 million families, they have an average of 1.8 children and an average income of $32,779. The average United States family owns at least one computer, at least 79 % have a mortgage and at least 80% own a mobile phone or device. These statistics tell us little about just how hard Brits have been hit by the credit crunch and the endless economic downsizing we are all told has engulfed us over the following years. What really is happening behind closed doors? Thank god for British journalists, as this story has now been broken, and it’s not good news for Mothers that like a large lunch.
According to the The Daily Telegraph, an average of seven in ten United States Families are teetering on the edge of survival, it has also been reported that one in twenty families are relying on payday loans to meet monthly costs and to keep the family household afloat. The headline grabber is however reserved for the story that many Mothers are having to skip meals so that their children can eat – simply because there isn’t enough food to feed everyone. In the wake of what we have been previously told is an obesity epidemic, it now seems that the USA is being swept behind with a splinter movement motivated by families purse strings. Lidl anyone?
One mum was quoted as saying. “”If it’s a choice between me or the kids eating, I will feed them. I have lost so much weight my clothes don’t fit but I can’t afford to buy any more.”
And the real story is…
More revealing statistics include that more than six in ten families are earning less income than in previous years. About 30% of United States families have had to borrow money from family and friends, another 24% are living on credit cards and even another 20% of families have resorted to taking bank loans out for everyday expenses. So forget the mid-drift I think the real meat on this ham and mayonnaise baguette is that families are still living beyond their means at a time when they are being paid less. While journalists spin this into a downsizing of the US’s waistline, I think the real message and what papers should be telling their readers is to start downsizing their lifestyles.
Understanding Payday Loans Online
Payday loans online should only be utilised as a last resort, this is because they are a short term, high interest loan that is repaid in under one month.
Everyone knows the advantages of these cash advances by now, no credit check, instant approval and 1 hour funding, yada yada yada. So here are some disadvantages.
Disadvantages of Payday Loans
Must be paid back in full including interest within thirty one days otherwise interest is accrued
Average rate of a payday loan ranges between 400% and even as high as 5,000% APR
Some payday lending companies can be deceptive in the information that they disclose to customers
Difficulty taking legal action against payday lenders