Despite the booming economy and record low unemployment, many Americans are unable to pay their bills and save for a rainy day. In fact, only 29 percent of families have enough money saved to cover 6 months worth of bills in an emergency fund and a whopping 23 percent have no savings at all. A recent study noted that 78% of American families are living paycheck to paycheck. It is among the highest number ever recorded.
There are many reasons to explain why this might be the case. Despite a low unemployment rate, millions of people are underemployed. Underemployment is when you have a job but are unable to work as much as you would like or work for wages that are too low to support your lifestyle. Countless others work in the gig economy, driving for rideshare companies or doing contract work that pays intermittently and doesn’t provide benefits or a steady paycheck. Still more people find themselves saddled with debt that is eating up their paychecks and stopping them from being able to save for the future and get ahead.
The average American household has $137,063 in debt with the average American earning just over $59,000 last year. While much of this debt is due to a mortgage or student loan, the average American carries a balance of $6,379 on their credit cards. The total outstanding credit card debt in America now exceeds 1 TRILLION dollars. Cars are getting more expensive as well. The average American household owes more than $30,000 on car loans. Suffice to say that millions of Americans are struggling to get ahead and and countless more are actively falling behind, struggling to handle untenable loads of debt.
If you find yourself among the nearly 8 in 10 Americans living paycheck to paycheck and you feel like you are drowning in debt, you are not alone. The competent and compassionate attorneys at Harmon and Gorove are here to help you get your finances back on track. We offer free consultations and have helped thousands of people achieve financial freedom. Call us today and let us help you!