How did the financial crisis hurt families in the USA?

The financial crisis has hurt a lot of people but nobody more so than the American family. The reason for that is that middle class families tended to be the most vulnerable when the crisis hit. As people lost their jobs and the value of their homes declined many families found themselves in some real financial difficulties. Most families continue to struggle even as the economy starts to improve because one thing that has not recovered is the job market.

The is that many people lost their jobs. This has in fact been one of the most long lasting effects of the crisis as unemployment has remained very high for quite a few years now. There are signs that the economy is starting to recover but the jobs still have not come back. In fact there is a real possibility that many of the jobs that were lost are gone forever as companies have been able to streamline their operations.

The other big way that families were hurt by the financial crisis was that many of them lost their homes. In fact this is largely what caused the crisis in the first place. Foreclosures are at an all time high as a lot of people found that when interest rates went up they were unable to pay their mortgages. Clearly losing a home is a major problem but when you combine it with losing a job it becomes a real hardship for the families that find themselves in that situation.

Even for the families that didn't lose their home the crisis has been a real problem. The biggest issue is that the value of their homes have declined dramatically. In many cases the value has fallen so far that they actually owe more than the house is worth. The reason for this is that with all of the foreclosures and the fact that banks are lending money to almost everybody there has been a huge decrease in demand for houses. This has led to a collapse in the price of homes. Since for most families their home is their most valuable asset this is a major problem. This is especially the case for people who were relying on the value of their home to pay for their retirement.

Families have also been hurt by the fact that is nearly impossible these days to borrow money. We live in a world that is based on credit and the inability to get credit is a major problem. There are a lot of people who would like to refinance their mortgage or take advantage of the low housing prices and buy a home. But with the banks being unwilling to lend money they are unable to do this. The result is that people are finding themselves struggling more than they need to be.