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It makes more sense to me (both from a personal, and the bank's perspective), that a single person on double income goes to zero salary when he loses his job, t
by torginus 10mo ago
It makes more sense to me (both from a personal, and the bank's perspective), that a single person on double income goes to zero salary when he loses his job, thus its riskier lending to him with his monthly payment being 25% of his income, than say 2 people at half salary, in which case one person's income share of loans jumps from 25% to 50%, a financially difficult situation, but temporarily manageable.
- bdangubic 10mo agoI agree in principle but I would venture a guess that number of two-income families that can deal financially with a loss of one source of income is very low. the very first financial discussion I had with my wife (fiance at the time) was that we will always live off a single salary and 2nd salary will always go into future bucket (we tap in for larger purchases or fancy vacation here and there). I don’t think many families are setup this way though - in my limited personal experiences a loss of one source of income leads to sale of the house/condo and move (rent or downsize)
- bombcar 10mo agoAnother thing that is often not considered is that two salary households are sometimes similar salaries (both nurses or warehouse loaders, say) but often you have one high-paying job and another quite low - I could rattle off a whole list of teachers married to doctors, etc. Losing the lower salary will be noticeable but not hurt anywhere as much as losing the larger.
- bdangubic 10mo agoabsolutely… after I read your comment I started thinking about every two-income family I know and none of them have similar salaries, always one (significantly) higher earner