Why it’s so expensive to be single in the U.S.

[ZLoth]

From CNBC:

Why it's so expensive to be single in the U.S.

There's a good chance there are singles in your area. Nearly half of adults in the U.S. are currently single.

The 117.6 million unmarried, divorced or widowed Americans older than 18 account for 46% of the population, according to U.S. Census Bureau data.

That number has been growing slowly but steadily since the 1960s. As more adults are finding themselves single or remaining unmarried for longer, many are feeling crushed by the total weight of living expenses, which have also continued to grow in recent years.

FULL ARTICLE HERE

[GaryV]

Because 2 people make more money than 1 - they really had to write an article explaining that?

[Rothman]

So...housing, since there's only one of you to pay rent or a mortgage, and taxes, which they say is due to the 2017 tax reform which allegedly did away with the marriage penalty (something I find dubious -- penalty may have been reduced long before that).

[Max Rockatansky]

I had a solution to the problem when I owned a home and was single.  I just rented out the extra space and it more than made up for the dual-income deficit.  My wife did the exact same thing before we met with her house.

Likewise, a lot of people is super expensive rental situations just bite the bullet and room share.  It certainly would make that $3,550 average rent solution for a studio in NYC more tolerable. 

[kalvado]

Economy of scale in simple examples.

[kphoger]

Because 2 people make more money than 1 - they really had to write an article explaining that?

I had a solution to the problem when I owned a home and was single.  I just rented out the extra space and it more than made up for the dual-income deficit.  My wife did the exact same thing before we met with her house.

Likewise, a lot of people is super expensive rental situations just bite the bullet and room share.  It certainly would make that $3,550 average rent solution for a studio in NYC more tolerable.

I've done that too, for a few years.  In fact, for a while, I shared a two-bedroom apartment with two other people and just slept in a part of the living room that I'd sectioned off by hanging a bedsheet from the ceiling with pushpins.

But it's worth saying that a married couple is less likely to have roommates living with them, especially as their family grows with children.  My wife and I had a series of roommates for a while, till our family size necessitated our taking over that space for ourselves.  But I don't think I know a single married couple who has a roommate not related to them in some way, or at the very least a longtime friend.

[elsmere241]

But it's worth saying that a married couple is less likely to have roommates living with them, especially as their family grows with children.  My wife and I had a series of roommates for a while, till our family size necessitated our taking over that space for ourselves.  But I don't think I know a single married couple who has a roommate not related to them in some way, or at the very least a longtime friend.

We're on our second and are giving up once he finally moves out.  We've collectively with the two of them had problems with rent being late or not paid at all; dishes being broken; food being taken and not always replenished; our stuff being moved around; you name it.

[triplemultiplex]

Why it's so expensive to be single in the U.S.

Freedom isn't free.

[Road Hog]

"Two paychecks are better than one" was a first-verse lyric in "Going through the Big D and Don't Mean Dallas" by Mark Chesnutt.

There are better reasons to get married.

[Ted$8roadFan]

Good points, but I think the gist of the article is that, for a variety of reasons, the single population is growing and will continue to do so.

[kalvado]

Good points, but I think the gist of the article is that, for a variety of reasons, the single population is growing and will continue to do so.

In other news, total US credit card debt is over $ 1 trillion, is growing, and will continue to do so.

[JayhawkCO]

But it's worth saying that a married couple is less likely to have roommates living with them, especially as their family grows with children.  My wife and I had a series of roommates for a while, till our family size necessitated our taking over that space for ourselves.  But I don't think I know a single married couple who has a roommate not related to them in some way, or at the very least a longtime friend.

We're on our second and are giving up once he finally moves out.  We've collectively with the two of them had problems with rent being late or not paid at all; dishes being broken; food being taken and not always replenished; our stuff being moved around; you name it.

Sounds like you need to do some better vetting.

My wife and I had three different friends live with us for a spell. One lived with us for three years while she was in dental school. I, personally, would never rent out to a stranger, but having friends who you know and trust live with you isn't that big of a deal. Now we just assume none of our friends want to crash with us due to a toddler's presence.

[Rothman]

I'm reminded of Judge Judy's mantra that she would live in a closet before living with a roommate.

[kphoger]

I, personally, would never rent out to a stranger, but having friends who you know and trust live with you isn't that big of a deal.

Renting to strangers can work out.

I used to find roommates by posting in the common area at local colleges.  The first roommate I found that way was taking grad classes at a Christian university—pretty drama-free—and we ended up being groomsmen in each other's weddings several years later.  The first roommate my wife and I had as a married couple (with a toddler, by the way) was a foreign Wichita State student from Saudi Arabia;  my wife became like a "mom" to him, we took care of him when he came down with swine flu, and we have a standing invitation to visit his family in Saudi Arabia if we ever want.

It doesn't always work out, though.  We did have to tell one to move out.

[tmoore952]

Good points, but I think the gist of the article is that, for a variety of reasons, the single population is growing and will continue to do so.

In other news, total US credit card debt is over $ 1 trillion, is growing, and will continue to do so.

If it was exactly $1 trillion (which it isn't, it's "over"), and if there are (according to internet search) about 332 million people in the US (lets call that 1/3 of a billion), that means the average credit card debt is about $3000. I've had balances that high after large purchases, but I've also paid my balance every month --- as a result, I still have not paid a cent in credit card interest in 35 years.

I would be interested in knowing what the total monthly interest charge is for the entire US population.

[Rothman]

Good points, but I think the gist of the article is that, for a variety of reasons, the single population is growing and will continue to do so.

In other news, total US credit card debt is over $ 1 trillion, is growing, and will continue to do so.

If it was exactly $1 trillion (which it isn't, it's "over"), and if there are (according to internet search) about 332 million people in the US (lets call that 1/3 of a billion), that means the average credit card debt is about $3000. I've had balances that high after large purchases, but I've also paid my balance every month --- as a result, I still have not paid a cent in credit card interest in 35 years.

I would be interested in knowing what the total monthly interest charge is for the entire US population.

I'm not so sure the average debt is a good way to assess it.  A decent number of people don't carry debt at all -- middle and upper classes.

$3000 is a lot of debt anyway, given interest charges.  Makes me wonder if the debt number includes balances paid off every month.

[jeffandnicole]

Good points, but I think the gist of the article is that, for a variety of reasons, the single population is growing and will continue to do so.

In other news, total US credit card debt is over $ 1 trillion, is growing, and will continue to do so.

If it was exactly $1 trillion (which it isn't, it's "over"), and if there are (according to internet search) about 332 million people in the US (lets call that 1/3 of a billion), that means the average credit card debt is about $3000. I've had balances that high after large purchases, but I've also paid my balance every month --- as a result, I still have not paid a cent in credit card interest in 35 years.

I would be interested in knowing what the total monthly interest charge is for the entire US population.

And you can probably cut about 20% off of that population since kids don't have credit cards.

So the avg debt would be higher.

[Max Rockatansky]

Good points, but I think the gist of the article is that, for a variety of reasons, the single population is growing and will continue to do so.

In other news, total US credit card debt is over $ 1 trillion, is growing, and will continue to do so.

If it was exactly $1 trillion (which it isn't, it's "over"), and if there are (according to internet search) about 332 million people in the US (lets call that 1/3 of a billion), that means the average credit card debt is about $3000. I've had balances that high after large purchases, but I've also paid my balance every month --- as a result, I still have not paid a cent in credit card interest in 35 years.

I would be interested in knowing what the total monthly interest charge is for the entire US population.

And you can probably cut about 20% off of that population since kids don't have credit cards.

So the avg debt would be higher.

Heh, my dad had me as a "co-signer" on one of his credit cards when I was two.  If it sounds shady you are on the right track.

[kalvado]

Good points, but I think the gist of the article is that, for a variety of reasons, the single population is growing and will continue to do so.

In other news, total US credit card debt is over $ 1 trillion, is growing, and will continue to do so.

If it was exactly $1 trillion (which it isn't, it's "over"), and if there are (according to internet search) about 332 million people in the US (lets call that 1/3 of a billion), that means the average credit card debt is about $3000. I've had balances that high after large purchases, but I've also paid my balance every month --- as a result, I still have not paid a cent in credit card interest in 35 years.

I would be interested in knowing what the total monthly interest charge is for the entire US population.

I'm not so sure the average debt is a good way to assess it.  A decent number of people don't carry debt at all -- middle and upper classes.

$3000 is a lot of debt anyway, given interest charges.  Makes me wonder if the debt number includes balances paid off every month.

Most certainly it does. My credit rating report has balance paid off monthly as my average credit card balance.
However US GDP is a bit shy of $2T monthly. Assuming half of that gets funneled through Visa isnt very realistic. At the very least, rents and mortgages are unlikely to go onto credit cards.

[ZLoth]

I'm not so sure the average debt is a good way to assess it.  A decent number of people don't carry debt at all -- middle and upper classes.

$3000 is a lot of debt anyway, given interest charges.  Makes me wonder if the debt number includes balances paid off every month.

Can we make sure we are talking about long-term (over one month debt) verses short-term (one month or less) here? Some utility services bill you at the beginning of month for the service rendered during the month and due at the end of the month. That, technically, is debt.

$3,000 also isn't a lot of debt depending on how you look at it. Ask someone who holds a home mortgage, but at least the property taxes and the mortgage interest is deductable provided you itemize. What really is the killer is the interest rate. 3.25% fixed on a home mortgage isn't that much, especially when you look back from 1980-1985 and the average mortgage rate was almost always above 12½% expect for the summer of 1980 where it hit 12%, and peaked at 18½% in October, 1981. From 1985-1990, the interest rate was almost always above 10%. That makes the current 30 year fixed at 7.5% and 15 year fixed at 6.81% (Per Freddie Mac) look like bargains.

[tmoore952]

Good points, but I think the gist of the article is that, for a variety of reasons, the single population is growing and will continue to do so.

In other news, total US credit card debt is over $ 1 trillion, is growing, and will continue to do so.

If it was exactly $1 trillion (which it isn't, it's "over"), and if there are (according to internet search) about 332 million people in the US (lets call that 1/3 of a billion), that means the average credit card debt is about $3000. I've had balances that high after large purchases, but I've also paid my balance every month --- as a result, I still have not paid a cent in credit card interest in 35 years.

I would be interested in knowing what the total monthly interest charge is for the entire US population.

Quoting my own post.

I acknowledge my average number is low, given that kids don't have credit cards.

Also not clear is whether the person whose bill was due the day before the $1 trillion estimate is made (and has already paid it off) is counted the same as the person whose bill is due the day after the $1 trillion estimate is made (and hasn't paid it off). As with a lot of stats, the details are very important for a complete understanding.

Because of my last paragraph, I also think that paid-off debt is included -- especially if it is also assumed that credit card due dates are spread (more or less) uniformly throughout any given month. In other words, there is no one day that is better than any other for making a total estimate.

My goal was to bound the average debt at the low end. Wasn't trying to give an authoritative answer, as there isn't enough info to do that.

[Rothman]

I'm not so sure the average debt is a good way to assess it.  A decent number of people don't carry debt at all -- middle and upper classes.

$3000 is a lot of debt anyway, given interest charges.  Makes me wonder if the debt number includes balances paid off every month.

Can we make sure we are talking about long-term (over one month debt) verses short-term (one month or less) here? Some utility services bill you at the beginning of month for the service rendered during the month and due at the end of the month. That, technically, is debt.

$3,000 also isn't a lot of debt depending on how you look at it. Ask someone who holds a home mortgage, but at least the property taxes and the mortgage interest is deductable provided you itemize. What really is the killer is the interest rate. 3.25% fixed on a home mortgage isn't that much, especially when you look back from 1980-1985 and the average mortgage rate was almost always above 12½% expect for the summer of 1980 where it hit 12%, and peaked at 18½% in October, 1981. From 1985-1990, the interest rate was almost always above 10%. That makes the current 30 year fixed at 7.5% and 15 year fixed at 6.81% (Per Freddie Mac) look like bargains.

Given credit card interest rates, carrying $3,000 of debt from month-to-month on an average 20% rate would be debilitating for most households in the United States, given the skew of distribution of household income.

[ZLoth]

Given credit card interest rates, carrying $3,000 of revolving credit card debt from month-to-month on an average 20% rate would be debilitating for most households in the United States, given the skew of distribution of household income.

There, corrected it for you.

Having said that, if you are carrying credit card debt from month-to-month, you are best off to shop around. While 13% interest rate through a credit union isn't great, it is certainly better than the 20% rate. Also, going through the expenses and asking what is absolutely needed and cutting out the "nice to have" luxuries to reduce the balance owed helps. And, of course, paying more than the minimum due.

[Rothman]

Given credit card interest rates, carrying $3,000 of revolving credit card debt from month-to-month on an average 20% rate would be debilitating for most households in the United States, given the skew of distribution of household income.

There, corrected it for you.

Having said that, if you are carrying credit card debt from month-to-month, you are best off to shop around. While 13% interest rate through a credit union isn't great, it is certainly better than the 20% rate. Also, going through the expenses and asking what is absolutely needed and cutting out the "nice to have" luxuries to reduce the balance owed helps. And, of course, paying more than the minimum due.

That's all nice and dandy, but if you're relying on a credit card, chances are your credit score is being hit and you can't qualify for better rates and limits.

[kalvado]

Good points, but I think the gist of the article is that, for a variety of reasons, the single population is growing and will continue to do so.

In other news, total US credit card debt is over $ 1 trillion, is growing, and will continue to do so.

If it was exactly $1 trillion (which it isn't, it's "over"), and if there are (according to internet search) about 332 million people in the US (lets call that 1/3 of a billion), that means the average credit card debt is about $3000. I've had balances that high after large purchases, but I've also paid my balance every month --- as a result, I still have not paid a cent in credit card interest in 35 years.

I would be interested in knowing what the total monthly interest charge is for the entire US population.

Quoting my own post.

I acknowledge my average number is low, given that kids don't have credit cards.

Also not clear is whether the person whose bill was due the day before the $1 trillion estimate is made (and has already paid it off) is counted the same as the person whose bill is due the day after the $1 trillion estimate is made (and hasn't paid it off). As with a lot of stats, the details are very important for a complete understanding.

Because of my last paragraph, I also think that paid-off debt is included -- especially if it is also assumed that credit card due dates are spread (more or less) uniformly throughout any given month. In other words, there is no one day that is better than any other for making a total estimate.

My goal was to bound the average debt at the low end. Wasn't trying to give an authoritative answer, as there isn't enough info to do that.

Total household debt in US is over $17B, and mostly mortgage as you can guess.
The example of credit card debt was to show that people do make less than financially sound decisions, such as carrying credit card debt or staying single. But, as it was mentioned above, freedom in not free.