The COVID-19 pandemic has proven to be deadly not just to the health of American citizens, but also to their personal finances. During the lockdown, millions of Americans lost their jobs and filed for unemployment. The virus, which first showed up in November of 2019, really had dug its claws into the U.S. by late February and March 2020. As of September 2020, the United States of America has become the epicenter of the pandemic with nearly 7 million cases reported. The unemployment-to-population ratio has reached an all-time high.
Healthcare systems in the country have been heavily taxed. The debt crisis has gotten worse for Americans and learning how to manage money is becoming increasingly difficult. During these trying times, author and businessman, Ronnie F. Lee’s latest book, Know Money No Problem978-1952263583, serves as the perfect guide to wealth acquisition and management. Lee understands what it’s like to survive without a steady source of income. The tips and hacks he shares in the book are designed to help average earners reach financial success in their lives. Clever Real Estate, an online real estate platform, started a study on the effects of the pandemic, named The COVID-19 Financial Impact Series. According to this study, here a look into how the pandemic has affected the financial situation of Americans:
· Landlords and real estate investors are nervous
With many Americans’ loss of income, many are worried about paying their mortgage. This is particularly true for overleveraged landlords struggling to manage their costs during eviction freezes.
This could result in foreclosures depending on how long shutdowns continue. Investors may be able to take advantage of these foreclosures or people looking to sell quickly to save their credit but should pay close attention to cash flow.
· People are taking on more debt
Not only are more Americans living paycheck to paycheck,but they’re also taking on more debt as a result of the coronavirus pandemic. With nearly half of renters and 18% of homeowners having less than $500 in emergency savings, it won’t take long for those accounts to be emptied. Nearly 25% reported having taken on additional debt only two weeks after the mid-March — when the effects of the pandemic were first felt in the U.S. Overall credit card debt is up 4% since March.
· Unemployment isn’t enough for lots of Americans
By the end of April, more than 30 million Americans filed new claims of unemployment, and over 40% of Clever’s survey respondents said they're currently receiving unemployment benefits. While the amount of unemployment someone receives is based on their most recent pay, it usually doesn’t cover the full amount of lost income.
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