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Negative equity is an interesting distortion, because in order to have that little net worth, you need to be wealthy enough to buy a house in the first place.

I'd guess a net worth of $5 probably equates to rented accommodation and hand-to-mouth existence: money in, money out, zero savings. Just coping.  Is it worth noting at this point that a single woman with children will have far greater expenses than a man who doesn't pay child support?

Below that, credit card debt (or worse), maybe run up for necessities or as a result of sickness or unemployment.

by Sassafras on Thu Mar 11th, 2010 at 11:54:15 AM EST
[ Parent ]
Check my post below. 46% of black women have zero or negative net worth. I've no idea how to interpret this: it may refer to negative equity which might not be that bad if you can afford the mortgage payments, but it might also refer to, for example, debts for medical bills for elderly relatives.
by gk (g k quattro due due sette "at" gmail.com) on Thu Mar 11th, 2010 at 12:09:45 PM EST
[ Parent ]
There are debts other than housing debt. Cars, even a TV can be bought on debt (I'm not sure if in the UK too, though).

*Lunatic*, n.
One whose delusions are out of fashion.
by DoDo on Thu Mar 11th, 2010 at 03:12:08 PM EST
[ Parent ]
Ah sorry, I see this is about the US not UK.

*Lunatic*, n.
One whose delusions are out of fashion.
by DoDo on Thu Mar 11th, 2010 at 03:14:09 PM EST
[ Parent ]
"Equity" may or may not have anything to do with it. Revolving debt has been easy for everyone to get for several decades, and it hasn't exactly disappeared despite the credit crunch.

you are the media you consume.

by MillMan (millguy at gmail) on Thu Mar 11th, 2010 at 07:47:42 PM EST
[ Parent ]
Student Loans.  Graduating from college already down $40,000 will put a lot of people into negative net worth.
by Zwackus on Sun Mar 14th, 2010 at 07:04:08 PM EST
[ Parent ]

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