Half of Americans Are Just Two Paychecks Away from Serious Financial Hardship

[jeffrey]

The eroding labor market is expected to trigger additional pain for banks as job losses undercut consumers' ability to make their mortgage payments.

With unemployment on the march, Julia Rodgers, a mortgage advisor with the National Community Reinvestment Coalition, told me last week that homeowners should have at least three months of mortgage payments saved up to protect themselves from a job loss. But a recent study by MetLife indicates that consumers don't have nearly enough of a financial cushion to keep them afloat should a job loss occur...

Half of Americans Are Two Paychecks Away from Hardship - The Home Front (usnews.com)

[jIM_Ohio]

The other half might be 1 or 0 pay checks away. LOL

[inneedofhelp]

Very scary and I think very true.

[sweeps]

I suspect the 2 paychecks thing may be somewhat exaggerated. The survey question asks how long would could you meet your financial obligations. I would infer that to be at your current spending rate. If I lost my job tomorrow I could quickly reduce or stop some expenses (eating out, entertainment, extra payment toward mortgage principal, college funding, etc.) until I got another job.

Still, the results are disturbing. 28% couldn't support themselves after 2 weeks of unemployment? Wow.