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Consumer credit counseling may be consideration as share of government income increases
By Sam Craine on May 30th, 2010
A recent report from USA Today showed that programs from the government to help consumers facing hard times reached a record-level of payout during the first quarter of 2010.
According to the analysis from the newspaper, people in the country received 17.9 percent of their income from programs like Social Security and insurance for unemployment. That's up from 14.2 percent when the recession started, USA Today said.
Meanwhile, income from private sources sunk to an all-time low of 41.9 percent, as consumers continue to struggle with joblessness and reduced wages. Donald Grimes, an economist with the University of Michigan, told USA Today these levels are not sustainable, as income from the government is either not taxed or held at a lower rate.
"This is really important," Grimes said.
Even consumers who do have a regular job may find it difficult to keep their finances in order. One way they may consider to get back on track is a consumer credit counseling organization, which can make recommendations on ways to reduce discretionary spending.
They can also help set up a budget with an eye toward setting up emergency savings, which can come in handy if a person loses their job.
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