Pandemic is wreaking havoc on white-collar workers who are deep in debt - they're getting slammed

[iluvtennis]

The Wall Street Journal@WSJ·Sep 21
The pandemic is wreaking havoc on white-collar workers who are deep in debt. “There’s a professional workforce that’s getting slammed.”

Link to tweet

https://www.wsj.com/articles/covid-unemployment-debt-middle-class-family-finances-11600122791

Until mid-March, Alysse Hopkins earned a comfortable living in Rockland County, N.Y., representing clients in foreclosure cases and personal-injury lawsuits.

In a good year, the 43-year-old lawyer and her husband, Ian Boschen, 41, together brought in about $175,000, the couple said—enough to cover the mortgage, two car leases, student loans, credit cards and assorted costs of raising two daughters in the New York City suburbs.

After the coronavirus halted many foreclosures and closed courts, her work dried up. Unemployment benefits have helped, Ms. Hopkins said, but the family is running low on savings and can’t keep up with $9,000 in monthly debt payments including mortgage installments. “It frustrates me to not be able to earn a living,” she said. “I have a law degree, almost 20 years of practice.”

Millions of Americans have lost jobs during a pandemic that kept restaurants, shops and public institutions closed for months and hit the travel industry hard. While lower-wage workers have borne much of the brunt, the crisis is wreaking a particular kind of havoc on the debt-laden middle class.

Debt didn’t present a major problem before the coronavirus. The job market was booming and median household incomes were rising, allowing families to keep up with payments.

....that's it for the WSJ link as it requires a subscription

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I feel for the plight of this attorney and her family. However, I think it is wrong to foreclose on people during a pandemic - it's not their fault that they are out of work.

[Wellstone ruled]

1. The Sleeping Giant

that no one is talking about. The real associated Story to this is,the Tens of Thousands of people who are being Evicted from their Rentals. Yes there are Moratoriums,but they are not Iron Clad. And Red States could care less about the Working people,they are just collateral damage.

[hatrack]

2. So, the WSJ has noticed that "People Who Matter" are losing everything . . .

Y'know, not like those pesky working-class Americans, so it's worth reporting on.

Nice journalistic catch there, Murdoch Street Journal!!

[BusyBeingBest]

3. They might be knocked back down to a lower standard of living for a while, but

they have more resources, education and connections than most people--they can sell their house, they can sell a car, negotiate lower payments, etc. It's people who have ONE car, an apartment lease, and no where else to turn when they lose their work that get the bulk of my sympathy.

[iluvtennis]

7. + agree. nt

[Merlot]

4. Welcome to reality, "debt-laden middle class."

It isn't good, hasn't been good for a long time. Your lifestyle was not sustainable.

[captain queeg]

5. I think because of unemployment insurance many people are hanging on

In my sphere I haven’t seen a lot of people getting really smashed yet. Of course a lot of people I know are retired so aren’t too impacted. And my old coworkers are working from home. But unemployment is running out and there are a lot of people whose jobs just aren’t coming back. Between that and moratoriums on evictions running out it’s going to be really rough on a lot of people in the coming months. But hey, the stock market is doing good. That’s all the rethugs care about.

[woodsprite]

6. Yup. My husband and I have to decide if we're 'retiring' 9-10 yrs early

during the 'incentive' program or not. Decision has to be made by early October. If you accept, you're out before the holidays -- Merry Xmas.

Yeah, you get a chunk of change to start which may pay down some of your bills other than mortgage, but that decision effects the rest of your life, healthcare, everything. Like so many of the people getting hit, I'm thinking we're not going to look "young and interesting with potential for growth" to anyone that's hiring in our field. Hubby is concerned with mortage + COBRA.

It sucks!

[iluvtennis]

8. Sending up good karma for your decision. BTW, maybe you can apply for Obamacare.

COBRA will be about 3-4 times what you paid for medical/dental/vision via your employer.

https://www.healthcare.gov/get-coverage/.

[Klaralven]

9. 20 years in practice pulling in $175K/year in good years. They shouldn't have any debt.

Leased cars? Credit card balances? Student loans still? Idiots!

[Boogiemack]

10. This is Trump's economy. It was hanging by a thread before COVID19.

Now the thread is fraying. If the economy had been as strong as Trump and the GOP gaslight us to believe, it would not have collapsed literally overnight. Most working families would have been able to make it through at least three months without using their last dime. But only the upper 10% could hold on. Families that thought they were in a good spot really couldn't make it to the next payday without fear and dread. That Trump tax break did nothing for them. I can hear the brokers now advising them not to cash out now...most will have little choice unless the GOP signs off on the Democratic Heros bill.

[iluvtennis]

11. remember trump's "economy" is only the stock market - he doesn't address the overall economy.

Link to tweet