Most Americans can’t cover a $1000 emergency with cash
They have to rely on credit if they have it...
This is an example of consumer savings and debt which comes up often.
When faced with an emergency, most people can't come up with $1000 in cash. They have to rely on credit.
Here's an excerpt from a recent article on this common problem:
When faced with an emergency, most people can't come up with $1000 in cash. They have to rely on credit.
Here's an excerpt from a recent article on this common problem:
More than one-third of households, 34 percent, endured a major unexpected expense over the past year, according to Bankrate’s latest Financial Security Index survey, with only 39 percent saying they would cover a $1,000 blow with savings.
When calamity did strike, the average expense was more likely than not to cost at least $2,500, illuminating the importance of stuffing a high-yield savings account with three to six months worth of spending.
“Unplanned expenses can pop up at any time, and your best protection is having an emergency savings cushion,” says Bankrate’s chief financial analyst Greg McBride, CFA. “Not only are returns on savings accounts rising, but it acts as a buffer from high-cost credit card debt or other borrowing.”
When calamity did strike, the average expense was more likely than not to cost at least $2,500, illuminating the importance of stuffing a high-yield savings account with three to six months worth of spending.
“Unplanned expenses can pop up at any time, and your best protection is having an emergency savings cushion,” says Bankrate’s chief financial analyst Greg McBride, CFA. “Not only are returns on savings accounts rising, but it acts as a buffer from high-cost credit card debt or other borrowing.”
The reference article is found at:
Everyone knows they should have cash in the bank for an emergency, but few actually do.
The article above goes on to say 19% of the people they surveyed said they would have to use credit to cover the emergency.
It's understandable when you look at how much of your cash flow goes toward the slow progress in paying down your debts every month.
Like many, you may have been paying down your debts for years now, and making little headway.
If you'd like to start making real headway, and actually pay everything off, learn more about how you could do that with guaranteed results, by using the button below.
The article above goes on to say 19% of the people they surveyed said they would have to use credit to cover the emergency.
It's understandable when you look at how much of your cash flow goes toward the slow progress in paying down your debts every month.
Like many, you may have been paying down your debts for years now, and making little headway.
If you'd like to start making real headway, and actually pay everything off, learn more about how you could do that with guaranteed results, by using the button below.