What It Means to Live Paycheck to Paycheck
To live from paycheck to paycheck means most of your salary goes to paying expenses, and that if you become unemployed, it would be impossible to meet financial obligations. It means you have limited or no savings that could be drawn from if suddenly unemployed. There are many reasons this could happen. A personal injury is one of them, and if someone else is at fault, living expenses, legal fees, and medical bills become a burden beyond what you can afford.
Forbes has estimated 78% of workers in the U.S. live paycheck to paycheck. Hourly workers aren’t the only ones in this category. Even families earning over $150,000 a year are in similar situations. According to Investopedia, 25% of people in this income bracket have insufficient savings.
What Life Is Like Living Paycheck to Paycheck
Living paycheck to paycheck means you need a tight budget. A homeowner who relies on paychecks to cover their mortgage is in danger of falling behind on payments if they lose their job. An interruption in paychecks can cause you to fall behind on a mortgage, rent, and credit card payments. A loss of income is the leading reason credit scores decline, according to a 2019 study by the Center for the New Middle Class.
If you’ve lost income due to a car accident or other personal injury claim, you may be eligible for a loan. Legal funding differs from a traditional loan in that there’s no credit check, employment verification, or any cash paid out of pocket. The cash advance is taken out of your potential future settlement and paid back through the proceeds only if your case wins.
Lawsuit Funding in Today’s Economy
Although the unemployment rate is low, there are various economic factors that are presenting challenges. There are many contract workers with no job security, college graduates who are overqualified for jobs they are seeking, and a large number of part-time workers looking for higher-paying full-time jobs. The economy is growing, but in 2019 the average salary hasn’t changed when adjusted for inflation. A typical worker in the U.S. earns about $44,500 annually.
However, the real economic gains are being seen by top corporate executives and financiers. Inventors/owners of digital devices are doing well too. Supply and demand have less impact on the economy than the institutions and politics that are currently in place, which give little bargaining power to American workers. Corporations are freer to form oligopolies or monopolies, while it’s more difficult for individual workers to join trade unions. A decline in unionization and spikes in income for richer Americans are leaving most workers behind.
Job benefits are vanishing as well. There are fewer unions to demand benefits for workers. At the same time, health benefits and savings plans aren’t as good as they once were. That means if you’re living paycheck to paycheck and are injured in an accident, there are fewer benefits to provide a safety cushion. Paying the rent can become next to impossible; let alone finding an attorney to represent you in a personal injury case.
If pursuing a case and getting maximum compensation seems impossible, FCA Legal Funding can provide a non-recourse cash advance. You can apply online in minutes. All you need is an accident case and a personal injury attorney in Los Angeles for us to get in touch with. After speaking to your attorney, we can approve and deliver your legal funding in as little as 24 hours.
Apply online or call 310-424-5176 today.