Will there be a funeral cost credit crunch like Wall street? Here are five warning signs.
1. Every month we hear of the funeral homes either taking money or breaking the law. Here is one of the latest:
http://www.foxnews.com/wires/2008Nov03/0,4670,FuneralHomeInvestigation,00.html
2. In the UK bodies are piling up do to the credit crunch. The article on this pile up of dead bodies is referenced here:
http://afp.google.com/article/ALeqM5hmsIReYtM60fZi_y5jdOCkZpIk6Q
Quoting from this article: “This distressing aspect of the credit crunch shows that the hurricanes blowing down Wall Street have the power to affect us all in unexpected ways,” the newspaper wrote.
“The sad story of the unburied dead should alert us to the much worse things that lie ahead if we do not pull out of this dive.”
3. The funeral industry is rocked with scandal. Specifically the preneed scandals of this year.
The IFDA Preneed Trust deficit and Scandal is witnessed here.
b-http://www.progressiveu.org/075616-key-month-funeral-cost
This was a 41 million dollar loss but is nothing compared to the 500 million dollar loss of NPS.
4. NPS or National Prearranged Services shut down and had a 500 million Loss-theft.
http://ifda.wordpress.com/2008/07/10/ifda-will-the-ifda-have-a-low-cost-funeral-like-nps/
This caused more expense for many funeral homes which also pass the cost on to the folks, and more lack of trust for preneed and the funeral industry.
5. According to Fox News Broadcasts on November 7th and November 8th 2008 it was reported that credit card companies at the Direction of the Federal Reserve are to put higher standards in place for credit even lowering the limits for and raising interest rates for people with good credit.
Most likely it will go the way of Great Britain for the funeral industry as well.
How will this affect funeral cost in America? Folks simply will not have the money to pay for the Family Funeral. Honest funeral directors will tell you that the lion’s share of their people pay for the funeral on a credit card.
Will there be a Funeral Cost Credit Tsunami? Your Funeral Guy says yes.
Will there be a bailout for the Funeral Industry. Probably it will happen.
But not just for the five warning signs mentioned above. The FTC, the United States Treasury, and The National Funeral Directors Association (NFDA) all have policies in place to make it happen. Yes before advocating a lower cost funeral a government bailout may occur. This will be covered in a later blog post.
Your Funeral Guy
[...] Quoting from this article: “This distressing aspect of the credit crunch shows that the hurricanes blowing down Wall Street have the power to affect us all in unexpected ways,” the newspaper wrote. “The sad story of the unburied dead … More [...]
By: » Your Funeral Guy: Five Reasons For a funeral Industry and cost … on November 8, 2008
at 5:41 pm