Because of this, there isn’t any normal month that is financial numerous families, but alternatively durations of economic slack punctuated by regular economic shortfalls. Whenever costs in an offered outweigh available income, families often rely on high interest credit cards and other forms of debt month. As a result, financial obligation is nearly universal among low earnings workers, obvious in both national studies and qualitative interviews (Despard et al. 2015; Halpern Meekin et al. 2015; Seefeldt 2015; Weller 2006; Wiedrich et al. 2016).
In past times decades that are few unsecured debt has exploded significantly, specially among low wage workers. Regarding the 115 EITC receiver families Halpern Meekin and colleagues interviewed, only five had no financial obligation (2015). Continue reading