AMERICANS NOT PREPARED FOR EMERGENCY EXPENSES
Suppose you just got into a car wreck – and it was your fault. Or your home needs an emergency repair. Or one of your kids ran up a debt you didn’t know about.
Bottom line, you need to come up with $400 – immediately.
What do you do? Well, according to data from a recent survey of 4,134 American adults conducted for the Federal Reserve, the phrase “beg, borrow or steal” comes to mind. Only forty-eight percent of those surveyed said they would be able to cover an emergency $400 expense without having to borrow or sell something.
The data also revealed that only 21.4 percent of Americans were “very likely” to be able to pay for an emergency medical expense.
Savings have also evaporated, with 57 percent of those who had money in savings prior to the recession saying they had to spend some or all of that money to pay bills. In fact a whopping 43.2 percent exhausted “all” or “nearly all” of their pre-recession savings since 2008.
Let’s give it up for that “rising, thriving middle class” huh?
Anyway … according to the data, 34 percent of Americans believe they are “somewhat worse off or much worse off” than they were in 2008, compared to 34 percent who say they are “about the same” and 30 percent who say they are somewhat or much better off.