U.S. household incomes experienced their first statistically significant decline since 2011, dropping 2.9% from 2019 to 2020, according to the US Census Bureau.
Economic growth stagnated in 2020, as evidenced by a median household income of $ 67,521; that’s a decrease from $ 69,560 in 2019, according to the Census Bureau’s Income and poverty in the United States: 2020 report, published jointly with the Bureau of Labor Statistics (BLS).
Median wages for all workers fell 1.2% in 2020, offset by gains for full-time, full-year workers where wages rose 6.9%.
If you’ve been affected by declining household income, a personal loan could help you meet your expenses or pay off other high-interest debt like credit cards. With today’s historically low rates, Americans can save money on their monthly payments by consolidating their debt. Visit Credible to find your personalized interest rate for a personal loan today.
UNEMPLOYMENT BENEFITS FALLS LOWEST IN PANDEMIC ERA AS UNEMPLOYMENT BENEFITS EXPIRE: WHAT IT MEANS FOR INTEREST RATES
Poverty rate rises without economic recovery
As income sources declined for the average household, the Census Bureau study shows the official poverty rate to be 11.4%, a percentage point higher than in 2019 and a break in a trend of five. consecutive years of annual decline. In 2020, 37.2 million people were living in poverty, 3.3 million more than the previous year.
However, another report, which estimates after-tax income (versus before-tax) and includes stimulus payments, was more optimistic. The Supplementary Poverty Measure (MPS) was 9.1% in 2020, 2.6 percentage points lower than in 2019, according to the Census Bureau’s The Supplementary Poverty Measure: 2020 report.
Including the economic stimulus payments, the data was more reassuring, but many Americans were still struggling with the effects of economic shutdowns induced by the coronavirus pandemic in 2020. One way to get back on your feet is to refinance in cash. Mortgage rates are currently hovering below 3%, making this a great time to withdraw money from your home. It will also allow homeowners to skip their next monthly payment and possibly even reduce their new payment while withdrawing money. Visit Credible to compare multiple lenders at once and see which one has the best rate for you.
HOUSE PRICES REACHED AN ANNUAL GROWTH RECORD OF 18% IN JULY, DATA SHOWS
Where can I take out a loan?
If you are suffering from a loss or declining income and need to take out a loan to catch up, there are several options available to you.
A personal loan can help you pay unpaid bills, consolidate high interest credit card debt, or even improve your home. Visit Credible to compare several loan options from various lenders and you can get pre-approved in minutes without affecting your credit score.
SOME OF THE BEST PLACES TO GET A PERSONAL LOAN
Homeowners can also consider mortgage refinancing. With interest rates at historically low levels, borrowers can refinance and reduce their monthly payments by paying less interest while withdrawing money from their home. Often after refinancing, a homeowner can also skip several months before needing to start paying off the new home loan again. Contact Credible to speak to a mortgage expert and get all your questions answered.
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