Coronavirus Reveals Financial Irresponsibility
The Annuity Man
Kristin Tate's opinion piece on TheHill.com explains how the Coronavirus has revealed the financial responsibility of many Americans. Most of us live in our own little comfortable bubble, but many around us are in financial chaos.
The following excerpt from Krisitin's article is enough to make anyone's mouth fall to the floor...."The availability of credit gave us an opportunity with a great hangover. It made nice homes, flashy cars, and expensive consumer products within reach for earners across income levels. But purchasing on installment is often a trap and a major contributor to our $14 trillion in consumer debt. Financing items as diverse as furniture, laptops, clothing, and more with easily obtained credit opened the door to fiscal recklessness. Consider that average Americans spend $800 monthly on car payments. It is not only low income and middle income earners who blow through their paychecks every month. Many high income earners also live above their means. Indeed, at least a quarter of households making $150,000 and above live paycheck to paycheck. Our fiscal irresponsibility means that when an unexpected crisis like the one today hits, Americans are unable to sustain their own families, even for a short time period."
All I can say to that little taste of her article is...WOW! All of this consumer over-spending is now coming home to roost. Let's just hope that people don't have their typical short memories when the economy does eventually turn around. If at all possible, you need a safety net to get you through unpredictable times. That always seems like a "no brainer" in retrospect.