A financial sqeeze for millions
December 2, 2012 4:44am CST
I read today that 39 percent on people in my home country are experiencing a financial squeeze. I believe the percentage is probably even higher. It said level one people are cutting back and level two people are using savings to cover spending and cutting back. It mentioned level 3 people are borrowing money from friends and family. It said level 4 people are using an unauthorized overdraft on their back account or have a pay day loan. The worst is level 5 people are defaulted on a loan, bill or housing cost. I found that shocking information on Which. It looks into news and the score of stuff like 72 percent for a particular laptop for example. Is there any kind of financial squeeze in your home country? Do local people have saving accounts where you live? Are some people experiencing some of these factors? How about you?
4 Dec 12
39 percent is a substantial figure. It is more than one third of the population that is facing this financial crunch. This figure could turn higher if there is no effective measures taken. I truly hope the Euro crisis can be resolve as soon as possible, it will definitely taking a toll on everyone here that living interdependence on this global economy. In Malaysia, the crisis is not that bad, however ... I noticed many shop lots and office units are not occupied since 2 years ago. This means the economy growth is not strong enough to sustain.
3 Dec 12
I live in Malaysia and Asia is not badly hit yet. But at the back of everyone minds is China growth and spending has been reduced for two consecutive years. This means it is just matter of time we will be hit too. The only thing that we are looking is for a soft / cushioned fall. There used to be a saying, 'if US sneeze, Asia will have flu too'. So, it is just matter of timing. The Euro crisis do affect our stock market as many investors prefer to stay side lines. Yes, most Malaysian have a proper job and they do buy unit trust, insurance and save in Employee Provident Fund. These are sorts of savings too. However, many retirees are feeling the squeeze because of the rising cost of food and necessities, the inflation which eat up their savings.
2 Dec 12
Hi Max! I live in a country which had been dubbed as a poor country for the past hundreds of years so poverty or financial problems are not new to us. People here experience all of the levels you mentioned. We have many banks here but not everyone have the extra money for savings. People work and eat day by day. There is a lot of fatalism in our place, leaving it to God Almighty where the next meal would come from or what tomorrow will bring. The struggle is mostly good only for now.
2 Dec 12
Majority people of our country are poor. Their monthly income is very poor. So they try to save some money from their income for future protection. They have savings account in banks and in post offices. Now a days some people use credit card and buy their necessaries. We have to spend money cautiously .
2 Dec 12
That's awful. We currently have a loan and we're trying really hard to pay it off. That's another reason why I got a new job. My previous one wasn't paying much. Hopefullly, we can get this one sorted out. We don't want any lawsuit filed against our name.
• United Kingdom
2 Dec 12
I worry that this country will never be able to get out of this damn recession my friend, we even had a double dip recession and this government doesn't seem to have a clue of how to get us out of it, you hear about so many companies going to the wall and wonder if banks will get hit next. There is mass unemployment and there seems no light at the end of the tunnel and yet fuel bills are still rising as is food it has a knock on effect.
2 Dec 12
In my home country ,there is a phenomenon that many people like to earn lots of money and save it .Most parents earn many money for their children to get married,to buy a house .it seems like they are always live for the next generation!! The next generation have a little load ,bill or hoursing cost!I just graduated ,so the above condition doesn't contact.(my English is poor.Kindly give me your advice)