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IN Lifestyle ON
It's a pain when you receive monthly bills in your mailbox. Where expenses are high and paycheck is low, paying bills is a burden on a different level entirely. Inflation is at the highest peak, and if you live in America, it's like a cherry on top. The monster of expenses engulfs you every week and you have no choice except paying for those bills.
Here are 6 monthly bills that Americans cannot afford to pay.
Despite adopting the Affordable Care Act, paying for health care still remains a burden. For people without government subsidy, the premium amounts to $286 in the USA, for families, it's $727 every month. If you consider a median income of $4,471 per month (minus, the taxes), if you add 'em up, it would cut out a large part of a paycheck.
Reports say, about 20% of people earning between $45,000 and $75,000 a year spend more than 30% of their income on rent. Paying rent was a burden on low-income families, but now it's valid for middle-class families too.
Spending money on groceries is the most basic expense. But, the need for money for purchasing groceries is increasing day by day. According to National Geographic, 1 in 6 Americans reports running out of food at least once per year. Also, at least one person in every family has a full-time job or is overweight. Highly processed foods are way much cheaper than expensive fruits and veggies.
When bank balance maroons you at the time of need, credit card becomes your best friend. Everyone assumes that they'll have enough money at the end of the month, but, often, we fail at that. The average balance for adults in the US is $5540 who holds a credit card. That balance rises to $9,600 for each household that typically carries a credit card balance. According to the reports, the average debt may sometimes rise up to $15,000.
Electricity is cheaper than food, rent and credit cards. But, the rates are increasing gradually. Albeit, it hasn't increased astronomically, but they may anytime soon. According to Forbes, if electricity rates rose to 10%, it would push another 84,000 Americans in poverty.
Life is unpredictable in nature. Sometimes, you may face such emergencies that may need a considerable amount of money. This is why it is important to maintain emergency funds. Better late than never.