MMI Provides Advice for Coping with Financial Hardship
Money Management International (MMI), the nation’s largest nonprofit credit and debt counseling and education firm, announced today the results of a survey designed to measure consumer sentiment and coping mechanisms in light of the current economic instability.
While experts are hesitant to define the current economic situation as a recession, 86 percent of respondents are feeling the effects of an economic downturn. Coping mechanisms for financial hardship vary widely, from eating out less to dipping into savings accounts or relying on credit cards. Interestingly, when asked about the most extreme sacrifice they’d make if the economic downturn continues, nearly half of respondents (41 percent) indicated they would take on an additional job.
Unfortunately, a second job may not be a viable option for many consumers. According to the Bureau of Labor Statistics, the unemployment rate shot up in May by the highest amount in over 20 years, and has remained steady at 5.5 percent, up from 4.6 percent a year ago. Even more troubling, the number of people out of work for more than six months has increased by 37 percent since June of 2007.
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