Study: Families on the edge of the financial abyss see little reason for optimism

StretchedLow-and-moderate income families in this region continue to report deteriorating financial conditions,according to a new survey from the Federal Reserve Bank of Kansas City.

By most measures, families in this wage category continue to have trouble landing jobs, finding affordable housing and having access to credit, the survey noted.

Low-and-moderate income individuals are those who have incomes below 80 pecent of the area median income. The survey looks at conditions in the Fed's tenth district, which includes Kansas and half of Missouri.

The study said families in this wage category expressed the need for health care services to combat the flu, and more money for food and utility services. "Compared to the previous year, virtually all of respondents reported an increased need for services," the report said.

According to the report:

--Job availability for low and moderate income families continued to become "more limited" in the third quarter. Some survey respondents report low-skill jobs being filled with relatively high-skilled workers.

--The availability of affordable housing remained "near neutral" despite increased demand for space because of job losses, reduced income and unrelenting foreclosure activity.

-- Access to credit continued to "tighten" unabated in the third quarter. Many respondents noted that only those with very high credit scores could access credit.