What do you do?
Barring physicial or mental health reasons, being a victim of criminal activity (rape, theft, et. al.), or "acts of god" (natural disasters), a person ending up in this situation most certainly screwed up somewhere along the line.
This is in my opinion the first place where taxes should go. To help out people that have been screwed by chance and bad luck so they don't have to rely on predatory lending.
It could be. Absolutely does not matter. You're in that situation. What do you do?
"Barring physicial or mental health reasons, being a victim of criminal activity (rape, theft, et. al.), or "acts of god" (natural disasters), a person ending up in this situation most certainly screwed up somewhere along the line."
Or got screwed. Take a single parent, for whom the other parent skipped town, and due to needing to take care of the child, was unable to complete school. Or take someone who just got cancer, and then was laid off from their job. Why should they continue to be punished for one screwup that may or may not be their fault?
"This is in my opinion the first place where taxes should go. To help out people that have been screwed by chance and bad luck so they don't have to rely on predatory lending."
I do not disagree in the slightest. However, given the current political climate in the US, it's not going to get any better. In fact, the safety net is likely to get worse.
Yes if you are in that situation that might be your only choice, or at the very least the only choice you believe you have. That being said, there's an argument (OP's argument) that if not most of this situations at least a big chunk of them would be avoidable via financial education.
And yes if your partner skipped town or got cancer the government should be helping you out IMO. A person shouldn't be punished for any of it, but that doesn't mean that those situations are not at some level influenced by making bad financial desicions.
Not everyone has the luxury of being able to move countries+. Which is why we should all vote and lobby for better welfare systems - so that we and our loved ones never have to take these types of decisions.
Edit + It usually takes marketable skills that allow a well paid job such that welfare doesn't seem like a priority.
Edit Would down voters care to chip in with a comment? Drive bys don't really lead to good discussion.
That is not an answer.
If you are actually trying to discuss in good faith, then please respond to the topic at hand. Playing Captain Hindsight helps absolutely no one, especially the people in the situation, and really just serves as "I'm better than you!"
I absolutely agree that better welfare systems would be excellent, and would alleviate these problems quite a bit. But here in the US, that is not going to happen anytime soon. In fact, given the government in power now, I would expect the welfare system to get even worse. So please, do not offer "Don't be in that situation" as a suggestion.
The original situation is horrible. No one should ever be put into it. There is little point answering the question - it has no good outcomes. Instead we need to think about how to prevent it happening. I suggest that we should strive to build societies where it does not happen. I offered a concrete suggestion for how an individual can help themselves and another for how they can try to help everyone.
In terms of the USA - Lobbying by the public has slowed attempts to decrease healthcare provision in the USA. People like you that care and live there need to continue pushing.
"There is little point answering the question - it has no good outcomes."
That's exactly why there is point in answering the question. It is a very real, very common situation that does actually occur. And that decision needs to be made many times.
"I offered a concrete suggestion for how an individual can help themselves and another for how they can try to help everyone."
You really didn't, as your suggestion is not applicable for the situation.
Pretty sure that is an answer even if its one that is unlikely to work for America this decade.
It's almost a full-time job in itself. You have to work every system to the bone and have a side-hustle in order to get past the current crisis until your next windfall.
You have kids? Give them a box of $0.05 things and tell them to sell them each for $1.00 . They'll have to learn how to live as poor folk sooner or later, and sales is a marketable skill, whereas panhandling is not. If you can work two jobs, they can work one and still go to school.
Being poor sucks. Don't be poor. If you find yourself being poor, stop as fast as you can. Don't fall for the traps that keep you poor. Don't let the crabs drag you back into their bucket. And never take out a loan in your own name unless the money you take is going to make you more money than what it will cost you to take it.
And for the sake of your mother's honor, if you take a job as a debt collector, tell everyone that you sell heroin and mug people instead.
Damn, if someone had just told the poor people this sooner, they wouldn't be poor! /s
That was really more for people who have never been poor, and can't quite fathom what it's like.