It’s Official: Americans Spend More Than They Earn
By Chip Parker, Jacksonville Bankruptcy Attorney on Feb 2, 2007 in General Bankruptcy Information
According to a February 2, 2007 article by AP Writer, Martin Crutsinger, Americans are saving at the lowest level since the Great Depression. In fact, in 2005, the national savings rate among citizens was a meager 0.5%, and in 2006, the savings rate was -1.0%, meaning that after paying taxes, people actually spent more money than they earned! The expression “living paycheck to paycheck” is all too common today.
With so many Americans “living on the edge,” almost any event can push them into insolvency, and now that adjustable rate mortgages are rising steadily, the squeeze is getting tighter. Loss of a job, even for a couple of months, can trigger a financial collapse, especially if one fails to make their minimum credit card payments.
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