No cushion

An IMF study reported on by The Huffington Post today should give all of us pause. Americans are buried in debt and, because of it, may be just one step away from financial catastrohe.

Today, Americans owe some $704 billion in credit card debt, and more than that in both auto loans and student borrowing.

Many Americans may not even realize the extent to which debt underpins their lifestyle. A number of analysts argue that many Americans who consider themselves middle class are in fact leading a precarious, over-leveraged existence, with few savings and little financial cushion in case of emergency.

Think about it. Most of us are just one health emergency — cancer, a heart attack, some disabling injury, a lost job, a fire, etc. — away from losing everything and ending up on a relative’s couch, or in a tent in the woods.

Cross-published from The Tent City Project.

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Author: hankkalet

Hank Kalet is a poet and freelance journalist. He is the economic needs reporter for NJ Spotlight, teaches journalism at Rutgers University and writing at Middlesex County College and Brookdale Community College. He writes a semi-monthly column for the Progressive Populist. He is a lifelong fan of the New York Mets and New York Knicks, drinks too much coffee and attends as many Bruce Springsteen concerts as his meager finances will allow. He lives in South Brunswick with his wife Annie. View all posts by hankkalet