Census Report Shows Bleak Poverty Picture; Payday Loans Not Mentioned as Source

Historical archive, first published 2006 — payday-lending laws and rates have changed since. Preserved for the record.

The most recent report on income levels across the U.S. doesn't bode well for consumers. While regular and/or faxless payday loan use was not blamed for sending people into poverty, critics of the industry are still keeping a close eye.

The Census Bureau reported Tuesday that the median household income was $46,300, a slight increase from 2004. However, the number of people without health insurance increased to 46.6 million in 2005.

Delving deeper intot he numbers, about 37 million Americans were living under the poverty line last year - about 12.6% of the population. The rate dipped slightly from 12.7% a year earlier, though the Census Bureau said the change is statistically insignificant. It's the first year such a figure hasn't increased since before President Bush took office.

The report comes four years into an uneven economic recovery - and a little more than two months before congressional midterm elections that will determine whether Republicans continue to control the House and the Senate.

As previously discussed here, regulations on payday loans are an issue of debate in at least on race.

Due to high gas prices and a slowing economy, monetary questions are at the heart of many impending elections. Overall, the poverty rate - the percentage of people living below poverty - helps shape the debate on the health of the nation's economy.

Some believe that a proliferation of personal loans has led to the current, bleak situation; while others can see ways in which cash advances come in handy for the poor.