What's Happening?
A recent survey conducted by the nonprofit organization Daf Hadash, in collaboration with the research institute Tovnot, highlights the financial struggles faced by nearly one-third of Israeli households.
The survey, which included 504 participants, reveals that 29% of households are unable to make ends meet, and 40% cannot handle unexpected expenses without resorting to credit. The findings are particularly concerning as they focus on households with a median net income slightly above the national average, indicating widespread financial distress. The survey also shows that 30% of respondents are in chronic overdraft, with many taking out loans to manage their financial situations. The data suggests that reliance on credit lines and loans is not a sustainable solution, as it often leads to a cycle of debt.
Why It's Important?
The survey's findings underscore a significant economic challenge facing Israel's middle class, as the cost of living continues to rise. This financial strain not only affects individual households but also poses broader economic implications. The reliance on credit and loans to manage day-to-day expenses can lead to increased financial instability and potential loss of property for many families. The situation calls for urgent government intervention and regulatory measures to address the root causes of the high cost of living and to provide support for struggling households. Without such measures, the financial resilience of Israeli families may continue to erode, leading to a potential economic crisis.
