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63% of Americans are Financially Illiterate
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1.
They do not have the skills to take out a mortgage
2.
They do not have the skills to understand their own bank accounts
3.
They do not have the skills to pay bills correctly or on time
4.
They do not have the skills to pay off debt
Implications
These people are at a disadvantage and risk losing the facilities in their home or the home itslef
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Demographics
The most at risk of being taken advantage of financially are America's poorest citizens, people who are already facing a variety of challenges. When people with little financial means make an ill-advised financial decision, they do not have much or anything to fall back on, meaning they could lose everything from one bad decision.
Evidence
In 2009 the unemployment rate in Lawrence, MA rose to 16.7% (this happened in the midst of the Great Recession). However, more affluent towns in Massachusetts saw little to no effects in their economy.
During the Great Recession, 4 million Americans were left without a home. Many of them had lived in multi-family duplexes that were foreclosed upon because the landlord could no longer afford the mortgage. The landlords had fallen victim to faulty loans.
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