Most Common Personal Finance Issues Americans Face
Just about everyone has faced some personal finance issue. Many of these issues related to job loss, while others are associated with living at or near the poverty level. While it may seem like no big deal to some people, but financial issues can lead to bankruptcy, resulting in foreclosure and repossession. Whatever the case may be, it is best to learn how to avoid such problems. And, it is best to be prepared for them as well. Below, you will discover a short list of the most common personal finance issues America face on a daily basis.
1 Inability To Make Ends Meet
Some American consumers learn how to manage their money in a manner that provides them with a comfortable life. However, this is not always the case. In fact, it is not unusual to see people struggling to make their money stretch from one paycheck to the next. When this happens, some individuals will turn to others for help, while others will rely on payday loans to see them through. Over 35 percent of a Money-Rates survey admitted to having difficulty paying their rent or mortgage and credit card and car payments. They also admitted to the fact that paying their regular financial obligations was their biggest concern.
2 Living From Day To Day
The Federal Reserve conducted a survey that resulted in some alarming information. The survey asked respondents about their retirement and pension savings. The results revealed that only 31 percent of the “non-retired” respondents neither of these savings. Nearly one in five (40 percent) of the respondents admitted to no savings whatsoever, saying that it was their biggest regret when it came to their finances.
3 Poor Credit
In this day and age, a large percentage of Americans are living with poor credit. This might seem like a minor problem, but it is far more difficult than you could ever imagine. In fact, poor credit will negatively impact the consumer in an abundance of ways. Remember that you have 7 years to remove late payments. Seven years should be plenty of time, but some consumers still do not take action when necessary. In return, this is going to leave their credit in poor condition. Then, they’ll have a tough time getting a job and obtaining a loan. These problems can be avoided by keeping your credit in good shape.
4 Too Much Debt
Obtaining loans for various purchases can be much easier than you could ever imagine. Some debt is fine, but a lot of Americans are assuming way too much debt, and it is going to come back to haunt them at some point in the future. If you’re worried about being unable to pay off your debts, you need to avoid taking them out in the first place. Debt can eventually spiral out of control and turn your life upside down. With that being said, you need to be cautious about taking out loans.
Do yourself a favor and keep your debt to a minimum. Otherwise, you’re going to get yourself into big trouble.