According to a Bloomberg report, the pandemic savings that Americans had accumulated have been spent down, but inflation, household product, and food prices, continue to rise. Mortgage and school loan deferments have ended, and New York’s Homeowner’s Assistance Fund ran out of money more than a year ago.
Americans are back to living off of their paychecks, but the job market is cooling, and the unemployment rate has begun to rise. The savings rate is falling, and credit card delinquencies are rising. A recent Census Bureau survey reported that 1/3 of households find it hard to pay for usual weekly household expenses. Walmart reports that shoppers are spending more of their paychecks on necessities and less on general merchandise.
Overall, the high cost of carrying credit card debt is depleting salaries and savings.
But overall, Americans have seen their retirement wealth grow thanks to higher home values and record-high stock prices.
However, all experts agree that Americans should not borrow against their homes or their retirement funds.
Once again, the middle class must learn to treat their household finances much as the large corporations treat their businesses. Retain your assets but strip away debt. Every major corporation that has filed for Bankruptcy protection and survived each successive fiscal crisis stronger than ever followed the same practice. Retain your assets but strip away debt.
The middle-class family has to copy the Bankruptcy Model that allowed Trump Corporations, Disney, General Motors, Marvel, and Six Flags to survive and flourish – Retain your assets but strip away debt.
New York residents who file for Bankruptcy can retain up to $408,000 equity in their home, up to $1.5 million in IRA or 401k savings, their cars, and household goods. Much like the large corporations do. Retain your assets but strip away debt.
Treat your family’s finances as a lean mean corporate machine.
