I recognize it's a real thing I just can't stand the mindset that such a word creates. If income/money is an issue for you, go out and do something to change that, don't sit around and be toxic against people that aren't having income issues.
Your comment ("lol income inequality") is dripping in upper-class privilege, as if you're the one suffering when poor people bring up things like the disappearing middle class & tax breaks for the wealthy -- because they're being "toxic".
It's ok, you can call them poor.
You're not completely wrong: many of these people have made mistakes, but the nature of how those mistakes get compounded can pretty thoroughly screw someone who was born with a bit of a handicap and who got off to a bad start.
So while it is possible to overcome these setbacks (and people should be encouraged to do so), it's not something one should be glib about.