Personal finances stressing half of lower income U.S. households

Personal finances are a major concern for about half of low-income households in the US. According to a recent study by the Pew Charitable Trusts, 54% of those earning less than $30,000 per year have trouble paying bills or have a negative balance in their bank accounts. The study also found that these households have very little savings and often use expensive options like payday loans to make ends meet.

One factor that exacerbates these financial difficulties is the lack of access to affordable credit. Many low-income households do not have credit scores or other qualifications that would allow them to obtain traditional loans, such as mortgages or car loans. As a result, they turn to alternative options, such as payday loans or rent-to-own arrangements, which often come with high interest rates and fees.

Moreover, the pandemic has created even more financial instability for low-income households, as many have lost their jobs or seen their hours reduced. With bills continuing to pile up, many of these families are struggling to make ends meet and are turning to food banks and other sources of assistance.

Overall, the study highlights the urgent need for policymakers and financial institutions to address the financial challenges facing low-income households. This may involve increasing access to affordable credit, as well as providing more support for those who have lost their jobs or are struggling to pay their bills. By taking action to address these issues, we can help alleviate financial stress for millions of families across the country.