Consumer spending is preparing another debt crisis
CHICAGO (NewsNation Now) – According to “Morning in America” money guru Matt Sapaula, despite government stimulus measures that briefly reduced consumer debt, savings rates are now falling and spending Consumption costs are on the rise, indicating problems on the horizon as inflation drives the cost of everyday items up.
Sapaula said 54% of people still live paycheck to paycheck, and 1 in 10 people earning $ 100,000 a year or more do the same.
Any sort of household emergency, like a refrigerator failure or a broken water line, could push household budgets to the brink of collapse. Something more serious, such as a medical emergency, could lead many households to bankruptcy.
Sapaula recommended adding a critical illness rider to your health insurance policy that will keep bills paid if you suffer from a heart attack or other health emergency. This will provide a safety net that will protect you and your family in the event of the unexpected.
Another thing that is getting more and more expensive is home insurance. Here, Sapaula recommends shopping for the best rate. Contact multiple carriers to see which offers the best coverage at the best price and explore bundling policies to save the most. Consider increasing your deductible, although doing so will leave you with a higher bill to pay up front if you have a claim.
A third idea is to start a home business. If you operate a business from your home, home insurance expenses, or at least a portion of them, will be tax deductible as business expenses. Definitely consult a tax expert on this part of your plan.