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Study: 44 Percent of US Households 'Liquid Asset Poor'

By    |   Friday, 31 January 2014 11:50 AM

A total of 44 percent of U.S. households are "liquid asset poor," according to a new study from the Corporation for Enterprise Development.

That means they have less than three months of savings, which the group estimates at $5,887 for a family of four. That sum represents three times the monthly income at poverty level.

When an unforeseen expense arises for a family that's liquid asset poor, it has to borrow to pay it, the report says.

"For the 56 percent of consumers who have sub-prime credit scores, the only option may be to take out a high-cost, often predatory, loan, which can create a cycle of debt and worsen financial insecurity," according to the study.

The middle class, defined as families earning $56,113 to $91,356 a year, isn't escaping trouble, the study says. One-fourth of middle class households are liquid asset poor, it says.

A 59 percent majority of the liquid asset poor are white, 89 percent are employed and 48 percent have some college education. Of the liquid asset poor families with children, 51 percent have both parents together.

Meanwhile, 20 percent of U.S. households were on food stamps in fiscal 2013, a record high, according to the U.S. Department of Agriculture, CNSNews reports. A record number of individuals were in the food stamp program, too.

The USDA said 23,052,388 households were on food stamps in the average month of the year ended Sept. 30, up 722,675 from 22,329,713 in fiscal 2012.

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A total of 44 percent of U.S. households are liquid asset poor, according to a new study from the Corporation for Enterprise Development.
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2014-50-31
Friday, 31 January 2014 11:50 AM
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