The United States may be among the richest countries in the world but its individual citizens aren’t exactly basking in luxury. While there are millionaires and billionaires enjoying the good life, there are also many who struggle to pay the bills every month. Only a few have adequate savings for retirement. If those at the bottom get into financial trouble, then they won’t have much of a safety net to cushion the blow. They are often forced to go into debt despite high-interest rates. Paying these back to prove to be difficult, and so the vicious cycle repeats. Getting out of this cycle should be a top priority.
The Statistics on Financial Fragility
The figures paint a grim picture for millions of Americans. If you think about it, $400 isn’t much compared to the average annual income. Yet an unexpected bill that reaches this level is enough to derail the budget of more than a quarter of adults. They admitted that they would have to sell a possession or borrow money to cover the deficit. Around the same number have nothing set aside for their retirement. Instead of looking forward to a nest egg, they are filled with anxiety when thinking about their twilight years. They even had to forego medical care the year before as they could not afford it.
All of these figures come from a study by the Federal Reserve on the economic well-being of households in 2018. The same paper indicates a big gap between the haves and the have-nots. The difference can usually be traced to their race and educational attainment which, in turn, dictates their income levels. Whites are generally better off than Blacks and Hispanics. As you would expect, having a college degree makes one less susceptible to financial instability. Meanwhile, younger Americans are more prone to credit card delinquencies due to enticing offers from financial service companies.
Access to financial services is another eye-opening statistic. Only 4% of white Americans are unbanked while the figures reach 11% for Hispanics and 14% for blacks. The unbanked tend to be less educated with low income. Without access to banks, they come to depend on expensive financial services such as payday loans with high-interest rates that are hard to pay back. They might also gamble on auto title loans, paycheck advances, or tax refund advances. It’s no surprise that they can barely save anything for retirement. If they experience a medical emergency, a job lay-off, or legal trouble, then their whole life can turn upside down.
If they can recognize the problem early enough, then the financially vulnerable might make changes that could improve their lives before the big problems hit. They can rationalize their budget, get a proper bank account, avoid debt, and build up their emergency fund.
Sometimes, however, the problem is already there and it’s too much for them to handle. Several lenders may be knocking at their door and be calling them to collect payments nonstop. It’s hard to picture a way out of this predicament if you lack knowledge about the finance industry.
The good news is that there are professionals who can help people get out of the quagmire. Different options will be offered depending on the situation. Every case has its unique characteristics, after all, so the solution should be just as distinctive. These professionals will try to learn as much as they can about the client and the debts to formulate a plan to deal with them.
About Elite Document Management Solutions
Don’t take chances with just any company. It’s your life on the line so find people who have the skills and experience to guide you on your journey back to monetary health. Elite Document Management Solutions provides financial rehabilitation services from San Diego, California. It’s a BBB-accredited business that carries an A+ rating. Many have recovered from credit card and medical debts thanks to their help.
Elite Document Management Solutions makes it a point to listen to their clients. They strive to understand their plight and formulate effective plans to reach their goals. Some clients are young while others are retired. Many are facing financial hurdles due to a death in the family, loss of employment, dissolution of marriage, and medical difficulties. Everyone is presented with several viable solutions, along with their pros and cons. Clients are given everything they need to make an informed decision about debt handling. If you would like to know more, then call the hotline at (800) 560-1774.