Poor -- and middle-income working families -- stretching paychecks to breaking point

[DeepModem Mom]

CNN/AP: Poor stretching paychecks to breaking point

NEW YORK (AP) -- The calculus of living paycheck to paycheck in America is getting harder.

What used to last four days might last half that long now. Pay the gas bill, but skip breakfast. Eat less for lunch so the kids can have a healthy dinner.

Across the nation, Americans are increasingly unable to stretch their dollars to the next payday as they juggle higher rent, food and energy bills. It's starting to affect middle-income working families as well as the poor, and has reached the point of affecting day-to-day calculations of merchants like Wal-Mart Stores Inc., 7-Eleven Inc. and Family Dollar Stores Inc.

Food pantries, which distribute foodstuffs to the needy, are reporting severe shortages and reduced government funding at the very time that they are seeing a surge of new people seeking their help.

While economists debate whether the country is headed for a recession, some say the financial stress is already the worst since the last downturn at the start of this decade.

From Family Dollar to Wal-Mart, merchants have adjusted their product mix and pricing accordingly. Sales data show a marked and more prolonged drop in spending in the days before shoppers get their paychecks, when they buy only the barest essentials before splurging around payday....

http://www.cnn.com/2007/LIVING/wayoflife/10/19/stretch.paychecks.ap/index.html

[jwirr]

1. Yes, my family are all stretching to make ends meet. If we have to

wait for 2009 for things to get better it is going to be hard.