Payroll Tax Cut Canceled Out By Increasing Food and Fuel Costs
Remember the paycheck raise you got back in January? No? You're not the only one.
In 2011, Uncle Sam boosted most people's paychecks by rolling back Social Security payroll taxes from 6.2 to 4.2 percent. Less money withheld meant fatter paychecks. But unfortunately, most of us haven't even noticed, say Atlanta bankruptcy attorneys. That's because the rapidly-rising cost of living is canceling out our federally-funded raise.
The point of the stimulus was to get Americans to open up our wallets, boosting the economy in the process. But with the cost of oil at $100 a barrel and wheat, soybeans and corn getting more expensive by the day - in turn raising the cost of meat, dairy and processed foods - it's not working. After a brief increase, consumer spending is again on the decline.
Prices are rocketing so fast that most of us haven't even noticed the extra money - it was probably spent before our paycheck got deposited. That's the problem with living paycheck to paycheck - the money is gone before you even get it. But there's a more effective way to break the cycle.
Americans don't need bigger paychecks; we need fewer bills. And if you're knee-deep in debt, lowering your balance is the way to get there. Like a tax cut, it means more money in your pocket. But since most folks carry thousands of dollars of debt, it will have a much bigger effect than anything the government could dish up.
In a perfect world, we could simply cut our costs and use the savings to pay down debt. But when you're struggling to pay interest - let alone lower your balance - it isn't that easy. Bankruptcy can be the solution. With Chapter 13 bankruptcy, you'll find an affordable payment plan that can eliminate or discharge your debt in three to five years - or less. No more interest, no more late payments, no more worry. Want to know more about what bankruptcy can do for you? It's free with a complimentary personal debt analysis courtesy of an Atlanta bankruptcy attorney. The cost of living will always go up, but your debt doesn't have to.