Numbers of Homeless Increase as Nation's Financial Crisis Continues

Even in the best of times, many Americans are living paycheck to paycheck. Now, with massive layoffs around the nation and many businesses in crisis and shutting down, many Americans are becoming homeless. Even during normal times many families struggle to pay the mortgage. And upon a divorce it is quite common that neither partner is able to buy out the other to keep the home so both partners move somewhere temporary while they figure out how to sell the home. If one partner buys out the other too often that may lead to a crisis paying the mortgage that neither partner ever expected to have to handle on just one salary.

Now with unemployment impacting many families homelessness is increasing. The National Alliance to End Homelessness reports that "On any given night, 248,500 persons in families are homeless." (Hud's 3^rd Report on Homelessness to Congress.) The Alliance adds that "Nationally families who experience homelessness have incomes under 50% of the poverty level....Families that experience homelessness tend to be headed by young parents and have young children."

Reuters reports that a survey by the U.S. Conference of Mayors showed that "19 of 25 cities saw an increase in homelessness." Many cities struggle, even in normal times, to provide adequate shelters for the homeless. The shelters provided are too often unsafe. And now, with so many people in crisis, shelter space is insufficient.

Reuters reports that Nan Roman, president of the Washington-based National Alliance to End Homelessness, said "It's very depressing because we have been making progress in getting it (homelessness) down in the past couple of years."

Reuters notes that America's government "has made $3.92 billion available to mitigate effect of mortgage foreclosures." The city of San Francisco reported a 50% increase in homelessness.

Many factors contribute to the homelessness problem. Divorce is growing ever more expensive and leaves many people financially destitute. If one partner attempts to "buy out" the other partner's share of the mortgage they may stretch their finances to a perilous point and for quite some time remain financially vulnerable.

Also, with job loss comes the need to provide for one's own health insurance and that is also ever more expensive. Many individuals and families struggling to meet housing expenses may rapidly create a financial crisis if they also try to pay for health insurance.

Will President-elect Obama be able to create a national healthcare plan? That may save a lot of people from the horror of struggling to pay high costs for insurance after they have lost a job. The last time I paid for Cobra Insurance after leaving a job it was $800 a month for medical and prescription coverage. That outrageous cost certainly proved challenging. Many families will immediately go into bankruptcy if a medical crisis strikes while they are uninsured. Medical expenses are one of the most common causes of bankruptcy.

A new, thrifty era is upon America. It is a time to live frugally and let go of America's trend to materialism. Things don't make one happy anyway; the reality is financial security is always the best goal to ensure a happy life.

Sources: http://www.endhomelessness.org

http://www.reuters.com/