Has Your Household Income Been Cut in Half?
There are no shortages of articles, surveys, and blogs that are talking about the desperate impact of the COVID-19 recession on family budgets. One aspect that hasn’t been talked about enough is how working families are financially struggling.
According to the Bureau of Labor Statistics, more than 65% of households are dual income households. A June survey found that more than half of households have lost income since the recession started. This means that even for families where someone is working, they are short where they were in February.
What about the government’s lifelines?
Lifelines that were stabilizing, to some degree, have expired. The Federal supplement to unemployment insurance of $600 has expired. The Economic Impact Payment of $1200 a person, $500 a child – generally went out in April and May – long since spent on food, housing, and bills. Halts on payments, like rent and mortgages, are now expected to be fully paid and on time. While some Americans are back in business, there’s a huge gap in middle-class families.
“What I see happening here is a core assault on successful college-educated families, which are the new breed of middle-class American families,” said Anthony Carnevale, director of the Georgetown University Center on Education and the Workforce. “There’s a professional workforce that’s getting slammed.”
Will there be enough jobs for everyone?
As the Wall Street Journal reports, this recession has hit young and middle-age families with college degrees particularly hard.
- Postings for jobs with salaries over $100,000 were down 19% in August from April
- United Airlines and American Airlines are planning to furlough or lay-off thousands of employees
- Salesforce, one of the largest SaaS-based companies, is planning to eliminate 1,000 jobs entirely
- Many hospitality-based companies (MGM, Yelp, etc.) are firing their previously furloughed employees
These are just a few examples of major companies, who employ many young and middle-age employees, planning to make changes before the end of 2020 in their workforce.
To read real stories of employees impacted by COVID-19, see this Wall Street Journal article here.
There has to be a lifeline somewhere…
Debt is increasing while credit scores are decreasing. The entire backbone of our economic system is failing those who generally work the hardest to build a sustainable life for themselves. That’s where we, TrueConnect, can provide a lifeline.
TrueConnect, our employer-sponsored loan program, helps provide a safe, very low-cost, short-term loan with small, easy to make payments. This lifeline can help a family stay afloat while the other member seeks employment, secures benefits, or otherwise recovers. Our mission is to protect the working class and help those who otherwise can’t help themselves. Credit scores shouldn’t be the deciding factor in your ability to access a loan and provide for yourself and your family. Let us help you no matter what your circumstances are.
To learn more about our voluntary benefit loan program, contact us today.