World hunger mounts as the cost of food exceeds the grasp of too many. Short term loans may help some.

The current food crisis facing many people today is a double whammy. Rising food costs mean that people must buy less food, while rising unemployment means more people do not have money to buy any food at all! Millions of people across the world find it very difficult to put even one square meal on the table, let alone three. The United States, with their vast stores of food, are facing similar problems, as recent survey data shows that one in three Americans are facing the exact same situation, with no hope of getting out of this trap. While short term loans can help some people get the food they need, others are not so lucky, and need to either visit a food bank or apply for food stamps—at least in the United States. Other countries may not have this system, meaning that many people may simply not eat for a day, or more.

1970s All Over Again—Only Worse

A recent report published by the United Nations shows that this crisis is worse than the one that existed from 1970 to 1974. With the increasing price of oil over the past year, food prices are higher than ever—much like what happened in the early 1970s. Other factors that contribute to rising food prices may be seen in the increased demand for meat diets in developed countries, shortages in production and diversification of agricultural land for purposes other than food production, and population growth in under developed countries.

How Did This Happen?

Huge jumps in oil prices from $28 a barrel to $147.70 a barrel may have been what started this current crisis. Oil producers laughed all the way to the bank, but then stopped laughing as they saw the results of their actions in the grocery stores. Even though they did not need short term loans to buy their groceries, they sure had to pay the increased food prices. Climate changes, including excess rainfall leading to floods and destruction in some countries while other countries suffered drought after drought, contributed to a shortage of food all across the globe. This also drove up prices. Governments across the globe bought as much food as possible from wherever they could, at market prices. Finally, fertilizer prices jumped sky high as the green revolution seemed to fail on all sides on a global scale. A hungry world becomes hungrier as greed and scandal ripple through the globe.

Will Demand Equal Supply?

While there may be enough supply to meet the demands of the population, rising prices pretty much make food completely unaffordable for many countries. If you think that these are just the developing countries that are having these widespread problems, think again. People are struggling in developed countries as well, because the food they see on the shelves of supermarkets costs way too much to buy. But because they must feed their families, they must pay the prices. Under the circumstances, people are now looking for every possible way to meet the extraordinarily high cost of living, even though they are already overworked and underpaid now.

Pay Raises Frozen While Unemployment on the Rise

While food prices have gone up, annual cost of living raises have been frozen, leaving less money in people’s pockets to buy food. And these are the lucky ones who have been able to keep their jobs in this economy. Unemployment, at least in the United States, was at 10.2 percent – the highest it has been since the early 1980s. To survive, people must look to short term loans, and the question then becomes, “What do I pay first—the short term loan, or buy food?” Of course, if you budget properly, you may be able to do both (if you have a job, that is).

(Photo Credit: http://www.flickr.com/photos/quinnanya/ / CC BY-SA 2.0)

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Learn how you can organize your bills so that they seem less of chore and more of an achievement.

You see them every day, and you hate to open them. What more exciting news could they possibly bring than reminding you of your obligation? Don’t they realize there is a recession going on? Do they think you have extra cash lying around? Rather than looking at them like the 800-pound ogre that won’t go away, begin organizing bills by priority and take a conquering approach to them.

According to psychologist Maslow’s hierarchy of needs, the first thing you have to satisfy are physiological needs such as food, shelter and breathing. This is generally a good guideline to follow, but you don’t have to exactly stick to it to the T as you’re organizing which bills to pay first. You may want to consider this recommendation.

Keep a Roof Over Your Head

As you’re leafing through those dreaded envelopes, organizing the bills in order of least ulcer-inducing, remember first that you’ve got avoid sleeping under a bridge. Mortgages may be the biggest pain because they are the largest payment, but if you consistently miss paying that bill, then be prepared to pitch your tent underneath the nearest overpass. Okay, perhaps that’s a bit harsh. At least consider that you have to first take care of your physical needs.

Got to Get Around

The second priority in organizing your bills is making your car payment. Unless you live in a city and have daily access to fast public transport, you need be able to get to and from work or to that next job fair. In the United States, Canada and other spread out societies, you can’t really go too far without wheels. We are highly dependent on cars to perform day-to-day functions.

Health Insurance

Despite this being under large debate in the government, health care is not something to gamble with. Swine flu, cancer treatments, disability-related injuries, obesity and stress-related symptoms have all affected physical and mental health in some form or another, especially in this economy. You need to be able to see the doctor whenever necessary. Don’t leave your health to chance and whimsy.

Who’s On First

Pay the bill that has the earlier date. You might have thought this would be the first criterion in paying bills, but you have to consider your personal needs as you’re organizing. Can you afford a negative balance in your checking account until payday rolls around the next week? Or can you afford to lose your house for a month as you maintain a positive balance in your checking account? Once you meet your physical needs, then you can take on the pesky bill that knocks early at your door.

Highest Percentage Credit Cards

Paying off high interest-rate credit cards is emphasized time and again by financial experts for good reason. Missing these payments on a consistent basis just piles on unnecessary fees. Remember that you are paying a penalty for being late. If you show up late to a meeting, you get a stern look. If you’re late with a promised card payment, you’re slapped with an added cost you don’t need right now. Some credit cards are a lot harsher about your delinquency than others by how high they charge you.