The Washington Post has a story about a woman who bought a sewing machine for $500, but it was only for her to use in her kitchen.
Now she needs to get a new one because she can’t afford to keep it, and she wants to save money.
The woman’s story is not uncommon, according to the Washington Post.
The article cites statistics from the U.S. Census Bureau showing that people in the lowest-income households spend about 40 percent of their disposable income on household expenses.
In the middle-income group, it’s less than 5 percent.
That means the household spends about half of its income on rent, groceries, utilities, gas, and clothing.
The Washington State Department of Finance estimated in 2010 that the average household spends nearly 60 percent of its budget on household costs.
For the average family of four, that means the average annual savings of $2,835, the Post reported.
The household is now paying about $2.15 per hour to rent and food.
“I feel like we’re losing so much money in rent,” the woman said, according the Post.
“It’s just really depressing.”
The story also cited a survey from the American Association of Home Builders, which showed that many home builders don’t offer credit to lower-income workers.
The survey showed that only 5 percent of lower- and middle-class households were able to refinance their mortgages.
The number of lower and middle income households refinancing their mortgages declined from 9 percent in 2015 to 5 percent in 2020, the AHA said in a statement.
That’s because the mortgage market has become more affordable and the average income of those borrowers is now closer to the median, the paper reported.
So if the average borrower is making $30,000 per year and the median borrower is only making $40,000, a borrower would be making $2 more per year.
That would put them in the low-income bracket.
“The problem is, the mortgage has gotten so much more affordable that people aren’t able to afford to refortify,” Robert Gagnon, the group’s vice president of economic development, said.
“If you’re a homeowner, you don’t have the ability to referrale your mortgage at the rate you want.”