-Caveat Lector- -------forwarded message--------- Subject: ESPFwd: Middle-Class Woes EVEN MIDDLE-CLASS AMERICANS HAVE SOME TROUBLE MEETING BASIC NEEDS July 9, 1999 Web posted at: 7:14 AM EDT (1114 GMT) WASHINGTON (AP) -- Luanne Shirling didn't think of herself as someone on the financial edge. She and her husband had good jobs and not much debt and were starting to fix up their house. But she didn't have health insurance, and she unexpectedly became pregnant. She ended up with complications, a Caesarean section and $20,000 in medical bills. Before long, she had missed several mortgage payments and even had to use food stamps for a short while. She's not alone. Some 49 million Americans -- or 20 percent of the nation -- had trouble meeting basic needs at least once in 1995. That includes paying rent, mortgages, food and utility bills. The poorest, of course, were most likely to have trouble. But many, like the Shirlings, are solidly middle class. And 8.1 million were in families earning more than $45,700 a year, the Census Bureau said in a report being released Friday. "We were not really saving when all of a sudden -- bam! -- this hit," said Shirling, of Warrenton, Virginia, whose family income was about $35,000 -- putting them near the national average. "I think a lot of people out there think they're getting by and doing fine and don't realize how devastating it can be." Nationwide, about 19.5 million of those who had trouble meeting basic needs had household incomes in the bottom 20 percent of the nation, meaning less than $16,800 per year. Another 12.2 million were below $30,400. Living on the financial edge But 5.2 million people had incomes above $45,700, and another 2.9 million were above $68,700 -- in the wealthiest fifth of the nation. Experts explain that many families with healthy incomes are still living close to the financial edge, without enough saved for an emergency. It's particularly dangerous for families living in expensive cities or carrying large mortgages or personal debt. That makes them vulnerable to unexpected financial hits -- a layoff or large medical bill, for instance. Or divorce can often push a family into financial crisis, with the people who used to pay one rent or mortgage now forced to pay two. The Census Bureau also asked Americans who would help them if they had trouble. More than three in four said they expected to get help if they needed it, mostly from family and friends. But only 17 percent of those who ran into trouble actually got help, mostly from family but also from government. Not enough savings Part of the difference in who needs help may be family stability, said Census demographer Kurt J. Bauman, who wrote the report. He noted that the elderly, who often live near the poverty line, were the age group least likely to report trouble meeting basic needs. But the elderly generally have fixed incomes and stable expenses. The most vulnerable group was children, who are also the poorest Americans. Nearly 30 percent of children lived in a family that had trouble meeting basic needs. Blacks and Hispanics were more likely to report trouble than whites, as were female-headed families -- all groups that are more likely to be poor, as well. But the report's more surprising findings dealt with those who are not poor, but firmly in the middle class or above. The problem is that many of these families do not save enough money, said Joanne Kerstetter, president of the Consumer Credit Counseling Service, which helps consumers restructure their debt. "They haven't been taught how to handle their finances. When any type of crisis hits, they don't have savings to fall back on," she said. An estimated 55 percent to 60 percent of households carry some credit card debt, said Stephen Brobeck, executive director of the Consumer Federation of America. Interest payments and fees quickly add up. "Even small differences can determine whether a lifestyle is sustainable or not," he said. "Eventually it catches up with you." DECLARATION & DISCLAIMER ========== CTRL is a discussion and informational exchange list. Proselyzting propagandic screeds are not allowed. Substance�not soapboxing! These are sordid matters and 'conspiracy theory', with its many half-truths, misdirections and outright frauds is used politically by different groups with major and minor effects spread throughout the spectrum of time and thought. That being said, CTRL gives no endorsement to the validity of posts, and always suggests to readers; be wary of what you read. CTRL gives no credeence to Holocaust denial and nazi's need not apply. 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