Nearly 7 in 10 Americans have less than $1,000 in savings

[Zippyjuan]

Debt levels have been coming down.

Breakdown of components (this chart is total dollars of personal debt- not per capita debt like the first chart- this too has been declining):

 

[Jesse James]

One point of the OP story is that many of those people who have less than $1000.00 in liquid assets, have multiple new cars with auto-loans, multiple credit cards carrying debt, and take very nice vacations several times a year. Some have nice houses with big mortgages.

It's the debt society. And they expect that when the SHTF, Big Sister will take care of them.

WSHTF debt won't mean much will it? the dollar will be worthless. you're better off with stuff than you are with cash in the bank

 

[Brian4Liberty]

WSHTF debt won't mean much will it? the dollar will be worthless. you're better off with stuff than you are with cash in the bank

Yeah, I should have been more specific. I was thinking of a lesser SHTF, like massive unemployment, where these people will no longer have any income.

 

[euphemia]

I'm saving up for future knee surgery, so I'm ahead of the curve. Despite Hillary's carping about affordable care, insurance is not a panacea. I'm trying to schedule this so I have the lowest out-of-pocket cost, but it will still be a lot compared to what I earn. I have been putting some aside every week for a couple of years.

 

[Carlybee]

That's because people don't know how to manage their finances and also make poor life decisions.

And sometimes catastrophic things happen that no one could prepare for.

 

[fedupinmo]

Good thinking. If only we had such a program, that took money out of your paycheck and forced you to put in a savings program.

That's a great idea, why haven't we thought of this yet !!!

via Imgflip Meme Generator

 

[Anti Federalist]

One point of the OP story is that many of those people who have less than $1000.00 in liquid assets, have multiple new cars with auto-loans, multiple credit cards carrying debt, and take very nice vacations several times a year. Some have nice houses with big mortgages.

It's the debt society. And they expect that when the SHTF, Big Sister will take care of them.

That was the point I was trying to make as well.

That most people have less than $1000 in liquid assets due to debt spending.

 

[Matt Collins]

And sometimes catastrophic things happen that no one could prepare for.

Yes, it is rare, but those unfortunate circumstances do happen.

 

[heavenlyboy34]

I saw a few stories on LRC, et al last year about an "unbanking" trend. Anyone got some stats on how many people simply quit using banks? /curious

 

[Zippyjuan]

Difficult to get statistics on how many opt not to use a bank as a deliberate choice since it is not asked. People without bank accounts can be counted but not the reasons why. According to BankRate:

For most of us, having a bank account is as natural as breathing. But according to the Federal Deposit Insurance Corp., 17 million Americans are unbanked, meaning they don't have a bank account, while another 51 million are underbanked, which means they supplement their bank account with alternative financial services. In both categories, consumers often turn to nonbank financial products that many consumer advocates describe as predatory at worst and insufficient at best.

"(The unbanked and underbanked) are more likely to fall victim to the high-rate (predatory) side of the industry, like payday, account-advance, tax refund-advance and structured, settlement-advance loans, to name a few," says Mitchell Weiss, an adjunct professor of finance at the University of Hartford (Conn.).

Typically, the unbanked and underbanked tend to be poor and working class people who choose to stay away because they either don't have the financial resources to maintain a bank account, or lack knowledge of how the banking system works, Weiss says. But that's not always the case. In fact, there are a number of reasons why some individuals are unbanked or underbanked.

But increasingly, many banks are declining business because the prospective account holder has a record of financial mistakes, such as bounced checks or relatively minor overdrafts. In fact, many Americans have effectively been blacklisted from major U.S. banks because they've failed background checks.

Your age is a key indicator of banking status. According to FDIC data, about half of young people between 18 and 24 are unbanked or underbanked.

"Intuitively, it makes sense since they are just getting started in life," Hofheimer says. "Factor in recent macroeconomic trends which have been especially harsh on (the young), such as student debt and a flat jobs market, and you have a potent combination."

Some consumers opt out of the banking system to escape debt collectors, who can levy bank account funds in some cases. But going off the grid to avoid debt collectors isn't a good idea, and it may not be all that effective, Weiss says.

"Although it's true that nonexistent checking accounts can't be liened, a skip trace may very well reveal the debtor's place of employment, which will open up the potential for wage garnishment," he says. "The same or similar investigation may also reveal other property that's owned by the debtor, such as a car or house, which may then be liened, seized and sold to satisfy the outstanding obligation."

Nobody likes fees, but according to a Pew study, one-third of the households that left banks altogether did so because of unexpected or unexplained fees. At the same time, data from the FDIC show that although recently unbanked households may cite fees as a key reason for leaving the banking system, only about 5 percent of the unbanked population, many of whom have been unbanked for years, see the cost of banking as the primary obstacle in account ownership. In other words, fees matter, but they're typically further down the list in terms of why some consumers are unbanked or underbanked, Filene's Hofheimer says.

More at link.

 

[timosman]

I saw a few stories on LRC, et al last year about an "unbanking" trend. Anyone got some stats on how many people simply quit using banks? /curious

Can you be your own bank? I would not even need FDIC insurance for my bank. Win-win?

 

[Zippyjuan]

It is called a "mattress" or a "coffee can" or a "cookie jar".

 

[oyarde]

It is called a "mattress" or a "coffee can" or a "cookie jar".

How much you got in the kitchen Zip ?

 

[oyarde]

I imagine most unbanked people in the US are due to being illegal , avoiding collection of judgement , child support etc .

 

[euphemia]

During the 2008-09 bank failures, local bankers were stepping forward to say they were doing fine. What do you all think a liberty bank would look like? Do you think such a thing is possible?

 

[timosman]

During the 2008-09 bank failures, local bankers were stepping forward to say they were doing fine. What do you all think a liberty bank would look like? Do you think such a thing is possible?

There are certain requirements to open a bank which most people are not able to meet.

 

[heavenlyboy34]

I imagine most unbanked people in the US are due to being illegal , avoiding collection of judgement , child support etc .

I'm only partially banked (credit unioned, really) myself. I like cash and silver and some FRNs, physical and in my checking account. If the SHTF, it's nice to be able to deal in physical currency, ya know. Anonymity is a nice plus too.

 

[Madison320]

Debt levels have been coming down.

Mortgage debt is "good" debt because you own an asset that's usually worth more than the debt. Most of the other debt is "bad" like credit card debt for example. You just owe money with no asset. The "bad" debt is rising, the "good" debt is falling because people can no longer afford a house, even with sub 4% rates. And govt debt has doubled over Bush's 8 years and again over Obama's 8 years. What could possibly go wrong.



I predict if Trump wins the election, Zippy will suddenly find things wrong with the economy for the first time in 8 years.

 

[stuntman stoll]

Or;

70% of Americans don't trust banks enough to place their savings in their trust for minimal return.

No. People don't save. People don't have savings at home except for some people who are here from other countries who have learned from experience to not trust banks.

 

[stuntman stoll]

I imagine most unbanked people in the US are due to being illegal , avoiding collection of judgement , child support etc .

Yep. There is a reason why all those people are in the snaking line at the wal-mart "bank." They CAN'T bank at a real bank.