- cross-posted to:
- news@hexbear.net
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Oh okay. It’s driven by housing prices in HCOL areas. That people are house poor makes sense and is reasonable.
Yeah, 40% of income going to housing is difficult to maintain, no matter how much you earn.
Living paycheck-to-paycheck doesn’t necessarily mean hardship, and LendingClub makes the distinction between those can pay their bills easily and those who can’t. Only a fraction of high earners – roughly one in ten – reported issues covering all their household expenses in April, according to the survey.
I guess the distinction is whether it means hardship for LendingClub. Fuck me, imagine reading shit like this credulously.
The key part there is that even people who should be financially stable are living at the limit of their means. As the cost of living continues to climb, most people are going to start finding themselves in financial trouble regardless of their income. Like say somebody is making 250k and they’re just barely able to pay their mortgage. Once they’re no longer able to pay they have to sell their house, but if nobody can afford to buy it then they’re fucked. And that’s what leads to crises like in 2008.
There was a time when I could joke “what do the other two do?” but I think inflation has long since caught up.
