While the average U.S. household income is about $50,000, it may not stretch far enough in between paychecks. As reported by CNBC, about 32% of working individuals find themselves short of cash before every payday.
Researchers found that workers earning less than $15,000 regularly ran out of money before their next paycheck. Employees earning six figures or more, however, also admitted to living paycheck-to-paycheck.
The continuous rise in housing costs and other living expenses burden many families who lack savings. Based on a survey conducted by the Federal Reserve, approximately 40% of working adults across the U.S. could not come up with $400 to cover an emergency. If faced with having to pay a credit card bill or cover a needed medical procedure, an individual may consider forgoing necessary treatment.
According to data provided by the Bureau of Labor Statistics, the cost of medical expenses increased by 4.6% during 2019. Housing increased by 3.2% while groceries increased by nearly 1.7% during the same year.
Stagnant wages and a gig-worker economy contribute to suppressed earnings for many Americans. Cutting down expenses may help some families for a short time, but many seek relief through bankruptcy when their circumstances become overwhelming.
Suffering from stress over finances is no longer uncommon, but it could lead to health issues, as reported by NBC News. Relief, however, may be attainable through a bankruptcy filing. Individuals who hold a full-time job may find that bankruptcy protection provides much-needed relief while also enabling them to keep their home, car and other personal assets.