Are people financially worse off then a year ago ?

amother

↑ Tealblue

Sun, Oct 13 2024, 11:14 pm

amother Navy wrote:

I thought MCA is predatory lending. Did the merchants they advanced cash to go belly up?

No, it’s not inherently predatory. There are definitely some bad apples though

Default risks have been higher since Covid. The main issue this past year has been the NY AG going after many top players as well as the biggest company of the industry, causing them to close their doors and many people to lose their jobs. And the negative impact trickled down throughout the entire industry effecting almost everyone

amother

Lemonchiffon ↓

Mon, Oct 14 2024, 3:23 am

100% accurate.

The business I work for is struggling mightily.

The business I run on the side is struggling even more.

Shout out to the clearance section of the lkwd shoe gemach on Jule St for their amazing selection of brand-new (past season style) shoes at just $5 each. Thanks to you, each of my kids will have a beautiful pair of Shabbos shoes this YT. Not sure what we're doing about clothing, but at least that. I am so grateful!

Also grateful for the ANCHOR NJ refund that will be landing in my checking account a day before Sukkos. All spent already, but it couldn't have come in at a better time, TYH!

Wishing all of us T'hei Shnas Parnassah Harbei!

amother

↑ Banana ↓

Mon, Oct 14 2024, 4:11 am

amother Silver wrote:

If so many people are affected why are all the lakewood clothing stores jammed packed with people grabbing over priced garbage as if it’s free?

The restaurants are packed? Are people just spending money they don’t have?

The middle class is now the poor class. Formerly poor class, I don’t know how they’re surviving. But the wealthy class just got downgraded to different degrees. So they may have sold their boat but many are still able to spend on clothes and restaurants.

amother

Clematis

Mon, Oct 14 2024, 4:15 am

amother Banana wrote:

Formerly poor class here. We were making our credit card minimum payments with difficulty. Now we can't and we're teetering towards bankruptcy. I hope Hashem will keep us from that.

amother

Blue

Mon, Oct 14 2024, 4:39 am

amother Banana wrote:

We are in Israel and I think people (falsly) think that when the war is over things will go back, I actually that is when the real pain will hit, they are going to have to raise the already INSANELEY high taxes, which will raise prices as businesses need to increase the margin.

For example we where formerly comfortable middle class and have moved to just scraping by middle class - and we got raises, and have jobs bh bh.

I know we cant be the only ones.

So if in the past we could afford to shop clothing in frum stores
(cheaper range), eat take out once a month, go out for coffee once or twice a month, shop the grocery with a reasonable budget, take the occasional taxi.

his year we ordered clothing from temu and supplemented gmachs and hand me downs, shoes from the US end of season( I hate asking for favors from family coming in, but they are so much cheaper), my grocery shopping is running around for sales, cut out all taxi's.

BH I am so grateful that we have jobs and we are able to pay our bills and save for the future.

I don't know how people making less then we do are managing.

amother

Babyblue

Mon, Oct 14 2024, 5:00 am

I think this post is going to make everyone crazy! I personally was fired after sukkos last year and still haven’t found new employment…. I believe Hashem is taking care of me! And yes we are very careful and counting dollars and Pennies as never before

amother

Lotus

Mon, Oct 14 2024, 5:05 am

amother Clematis wrote:

Formerly poor class here. We were making our credit card minimum payments with difficulty. Now we can't and we're teetering towards bankruptcy. I hope Hashem will keep us from that.

Btw we just got involved with a program called angels of debt. We were drowning in cc debt and they are helping us. It ruins my credit but doesn’t touch dhs credit. Feels like a weight has been lifted

amother

Grape

Mon, Oct 14 2024, 5:46 am

Way worse this year. Last year could go to restaurants occasionally, buy pizza once a week, shop in a frum store for myself twice a year.
This year is hand to mouth with no extras. To much month left with no money. Sometimes 10 days to 2 weeks at the end of the month where I can’t replenish snacks or toiletries. For reference we make about 150k so this is insane. 4 tuitions + playgroup.

amother

cornflower

Mon, Oct 14 2024, 7:28 am

amother Aqua wrote:

Of course
I’m in a financial field
Big firms and companies including investment banks have been reducing staff like no tomorrow
That says a lot on its own
For middle class and lower end consumers it’s extremely hard.

Interest rates are high..we made much more money this year.

amother

↑ Denim ↓

Mon, Oct 14 2024, 7:48 am

amother Banana wrote:

Nope, there are WAAAY too many people still shopping in better stores. There must be a significant percentage that is still doing well.

amother

↑ Denim ↓

Mon, Oct 14 2024, 7:49 am

amother Grape wrote:

What changed?

amother

↑ Brass ↓

Mon, Oct 14 2024, 7:54 am

amother Lotus wrote:

Aren't they a settlement company? Meaning at some point they will make a deal and you'll have to pay around 35% of what you owe? I did that awhile ago and I'm not sure it's worth it. Also, the forgiven debt it taxable.

Between paying back the credit card, paying the settlement company, and paying taxes, I think I ended up paying at least 75%, probably more.

Look, if there's no choice, there's no choice. But I'm not sure people who go this route come out that far ahead.

amother

↑ Banana

Mon, Oct 14 2024, 8:48 am

amother Denim wrote:

Nope, there are WAAAY too many people still shopping in better stores. There must be a significant percentage that is still doing well.

That’s what I’m saying. I literally know a wealthy person who sold their yacht to cut down their expenses but they’re still shopping at expensive stores and going to restaurants. Cutting down means something different to a wealthy person than it does to you. Many were affected, but in a way that we would find laughable.

Imagine going from earning 3 million a year to earning 1.5 million. You’d feel stressed and nervous and might have to cut down your extravagant lifestyle. You’d wonder if it’ll go down further. But a $200 romper is still a tiny percent of your income.

Some industries are doing fine and didn’t even have to sell their yachts. But most are not doing as well as they used to.

amother

↑ Denim

Mon, Oct 14 2024, 9:13 am

amother Banana wrote:

The stores are PACKED. With regular people, not formerly wealthy people. And, no, 99.9% are really not selling their yachts.

amother

↑ Buttercup

Mon, Oct 14 2024, 9:17 am

amother Denim wrote:

Nope, there are WAAAY too many people still shopping in better stores. There must be a significant percentage that is still doing well.

Even if it’s 30% that are doing well that’s enough to keep the local high end stores and restaurants open. So if 70% are struggling it could be all you see is the 30% who are not struggling, or for whom struggling means not doing yom tov in Dubai but they can still by designer and go to Orlando.