Around 4 in 10 Americans living from check to check

It was over four years ago when our economy shifted from recession to improvement, 36% of the American workers generally live from their paycheck to paycheck as per a survey done on Wednesday by the CareerBuilder.com. Another 40% of the workers say they sometimes do live from paycheck to paycheck. The numbers are lower than their 2008 highs and provide a better picture than a different poll done in June that detailed check to check living in a different way. The survey had further stated that 3 of 4 Americans do not have sufficient money saved to survive for 6 months if their jobs are lost, and that 27% had no savings at all. The CareerBuilder.com also questioned its respondents unswervingly if they actually live from check to check, creating lesser percentage.

These surveys straight away show that most of the people opting for payday loans fall in this category. They take the loan thinking they would be able to repay it during their next paycheck but they have to cut down on their living cost to pay for the high APR and fail most of the time. This is the reason they fall into the debt trap created by payday lenders. Thus it becomes necessary for states to pass strict laws for loans and lenders to help people escape the death trap. Payday loans have high rates of annual principal interest that is even out of hand for rich people.

The pressure created by continually worrying over making the ends meet has similar effect on brain as continuously pulling all-nighters and can blow 13% off an individual’s IQ as per a study reviewed earlier this year. The advantage of payday loans is that consumer can get it easily without having to produce several documents but if unable to pay it back their credit rating suffer tremendously.  Some of them will become ineligible to take another loan throughout their lives because of the destroyed credit ratings. The press release released by Wednesday’s findings puts light on the slightest enhancement over the previous CareerBuilder.com’s -commissioned surveys. In year 2012, 38% of the respondents stated living from check to check, and Rosemary Haefner from CareerBuilder’s calls this progress “as a sign that spending power and job security may be on the rise.” But the data on state of American worker income gives less indication of this kind of progress. Workers are earning less than they were at the end of the monetary crisis, partially due to high unemployment rate lets employers to force down more output out of their employees without raising their wages. Workers haven’t yet rebound from bosses, financial crisis, and corporations but the ratio of CEO to worker pay rose 273-to-1 in the latest figures. Bank profits are now recording highs since five years after Wall Street collapse. Taxpayers persist to sponsor executive reimbursement, and executive compensation is maintained to be detached from real executive presentation.