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I know how it is to be suffering from family debt because when I was young my mom had a lot of hardships. The man that she was with left her and she was struggling to make ends meet. The good thing is that she has a man that would buy her anything. She has him wrapped around her finger. When I did the research for my paper; �How does the rising cost of everyday necessities contribute to family debt?�, the same five things came up; It is harder for low income families to get out of debt, the price of key items (house, Medicare, transportation) seems to go up faster than income growth, it easier to fall into debt than get out of it, the more education a person has the more debt they may have, and it may be hard for a person to keep up with the growing market.
A low-income family may not have all the resources to pull themselves out of debt. �Among families with debt, the median amount of liquid assets for families living below the poverty level is less than $200� (Wagmiller Debt and Assets). If a person in a low-income family were to get laid off, he/she could fall into a great amount of debt because the cushion is not there to fall on to. �For most low-income families, debt has grown much faster than has family income. Consequently, debt is a much greater problem for low income-families today than it was two decades ago� (Wagmiller Debt and Assets Among Low-Income Families). In addition, the person may have to pay for the rent, Medicare if somebody were to get hurt, a pay for car expenses (insurance, gas).
The cost of key items seems to go up faster than income growth. Everybody needs a house to survive the elements, Medicare just in case somebody gets hurt or sick, and a car to take them here and there, but the price of these items is hurting people than helping them. When the price of housing goes up, people do not have the money there for other things. It always seems like give or take. If the money is not there some things get bypassed or put aside. For most people, the price of insurance is to expensive �Relentlessly, rising U.S. health-care costs have made health insurance too expensive for many employers to offer and health care itself too costly for tens of millions of Americans, from the 46 million who are uninsured to low- and middle-income workers with insurance. In the last five years, insurance premiums jumped 73 percent, but wages rose only 15 percent�� (Clemmitt Rising Health Cost). In addition, Most people will not go to the hospital tell something really dramatic happens to them because they want to avoid a big medical bill. The price of a car has seemed to skyrocket since not that long ago. Since everybody needs a car to get around, a car seems like a necessity because you need it to fulfill tasks that are distant. Not only can the price of a car make a person fall into debt, but the price of keeping it up can too.
It can seem easier to fall into debt than get out of it. With the price of everything going up, everybody seems to be playing catch up, and to some people it may seem hard to catch up. In addition, the person may be overwhelmed with massive amounts of bills that need to be paid, and their debt continues to rise. The person may be digging their self into a hole and may not be able to get out.
The more education a person has the more he she may be prone falling into debt. �Households with at least a college degree owed 130.0 percent of income in 2004 and households with some college education owed 126.9 percent of their income in debt, while households with high school education owed 83.0 percent. Household with less than high school owed only 52.6 percent of their income, or less than half of that of households with at least some college education� (Weller Drowning in Debt). A person going to college may have to pay an outstanding amount in loans, tuition fees, and books. The price of these items may make a person in a low-income family fall into debt because the family support is not there. In addition, the family may fall in debt paying for a sibling to attend college.
What is the real price that people are paying? The price of everyday necessities seems to go up faster than a person income and is not showing any sign of slowing down. The price that a person pays may be that he or she might fall into a substantial amount of debt. In addition, he or she may have to work twice as hard just to get out of debt. The word debt has a more negative effect on people than any other word; nobody wants to fall into debt. I am writing this paper to provide the causes of family debt due to the high price of everyday necessities and give a cure to the cancer we call debt.