I have this client with no savings, retirement; she’s a renter, no assets. Her total monthly income consists of $1201 in disability and $4, yes, four dollars in food stamps for a family of three. I’m having a major problem with one of her expenses, a $250 monthly cell phone bill. She’s $1500 behind in her rent of which she only has to pay approx $150 per month. Her excuse for not paying her rent is that she didn’t know where to send her payment to. She had it saved but “something came up” and she didn’t have the $1800 she owed to her landlord. To her credit the property manager had so much on his plate he forgot he rented it to her but still…not one phone call to them to ask where to send the payment? You did sign a lease didn’t you? She’s currently paying more than $100 over her regular rent payment to pay it off yet I can’t help but to tell her about reducing her cell phone by I don’t know…$200 maybe? Then she could pay off the remaining balance of her past due rent in five months instead of fifteen and take the $300 and start saving toward the $2000 she’s allowed to have in savings without interrupting her disability payments in case something else comes up.
It gets worse. She proceeds to tell me how she can’t cut the cell phone because it’s a multi family plan between her, her daughter and granddaughter. “Ok, are DD and DGD paying for their share of the bill?” I asked. “No” she says. DGD is living with her along with her own infant-aged child without a job. Although, she is making a valiant effort to apply for welfare. Not because she really needs it but because that’s what she’d rather do instead of getting a job. DD apparently has a job but doesn’t pay her share of the bill either. I didn’t care to ask what her problem was.
Granny is $98 in the hole every month (which explains why after looking at her file I see she had to get “emergency help” with her utilities.) I proceed to go through her budget to see where she can cut back $108 since she tells me that she’d like to start saving $10 a month. I noticed that she’s already cut her cable entirely and she tells me about wanting to make the necessary budget constraints so she can have the cable cut back on. It’s $168 a month. No worries though…that’s the bundle price.
I have scheduled her for a follow up but I’m afraid it will all be in vain. She doesn’t see her spending the way I do. I don’t think I pay $3000 in three years on a cell phone let alone one. Then there’s the cable and she NEEDS the cable. Despite the fact that she’s one more late rent payment away from eviction. This of course leaving her with no place to hook up the cable.
Cell Phones and Poverty
July 25th, 2011 at 11:38 pm
July 26th, 2011 at 12:03 am 1311638630
July 26th, 2011 at 12:33 am 1311640422
July 26th, 2011 at 01:00 am 1311642047
July 26th, 2011 at 02:10 am 1311646239
July 26th, 2011 at 12:33 pm 1311683629
July 26th, 2011 at 02:39 pm 1311691157
July 26th, 2011 at 02:40 pm 1311691229
July 26th, 2011 at 04:34 pm 1311698095
I also don't think internet is necessary. If I were her it would be either cable or internet and a home phone. I could live my life like it was 12 years ago before cell phones became mainstream.
I was just surprised that she was more concerned about these expenses and not her rent. If I were in her position everything would be slashed to the bones until I was caught up on my bill and had money for emergencies in savings.
July 26th, 2011 at 07:29 pm 1311708555
People don't always make choices from a strictly dollars and cents perspective. There are often other reasons they make the choices they do. You may not understand it, or agree with it, but in the end it's up to her.
Better to just focus on putting our own house in order before pointing fingers at others.
July 26th, 2011 at 08:19 pm 1311711590
She strikes me as someone who's all about taking care of her family but I can't help but to think that she's being taken advantage of because of her heart.
Whatever the outcome I've done my part as her counselor in making suggestions. Either way I hope it works out for her. I just don't want to see her homeless.
July 26th, 2011 at 08:24 pm 1311711849
HousingCounselor on the other hand has to try to get into this woman's brain a bit if she's going to try and advise her on how to fix her finances. That IS actually her job, so I understand her musing over these things.
But it's not a moral problem, so it shouldn't be treated as if this woman is less than anyone else. (Or, really, her daughter and granddaughter. If they're doing financial things we don't agree with, it might not be out of any ill will or deliberate manipulation of their (grand)mother.)
July 30th, 2011 at 12:27 am 1311985634
July 30th, 2011 at 11:08 am 1312024089
July 31st, 2011 at 06:37 am 1312094263
August 1st, 2011 at 05:24 pm 1312219495
And, poor people getting money from social programs isn't as harmful to the overall economy as extra tax breaks for millionaires, because the millionaires will take that money out of circulation (and likely out of the country entirely!) whereas poor people will blow that money -- whether it's on needs or wants -- and it gets funneled back into business and our economy.