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There are two types of poverty: residual and transitional. The residual poor have a difficult struggle ahead of them, often living in poverty for their entire lifespan. There are often several issues these individuals face, such as addiction, chronic and persistant mental illness, mental retardation, disabilities, and a small support group. They often have very few resources to rely on during times of trial and frequently end up utilizing community resources such as homeless shelters, emergency assistance such as food or rent money, mental health resources, etc. The transitional poor are "on the cusp" of poverty. They are living paycheck-to-paycheck, but when times get tough and they are faced with job loss, medical bills, divorce, grief, or mental illness, they have a support network to which they can turn. They can sleep on a friend's couch, they can find another job in a reasonable amount of time...in other words, they can be resourceful. There are times, however, when their stamina dwindles and they slip further into poverty and, at that time, they may be on their way to becoming the residual poor, in which case they may pass poverty onto their children.

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