March 29, 2023

A majority of Americans say they would struggle to pay for a $1,000 emergency expense, with a record share saying they would have to turn to credit cards to cover the cost, according to a new study released Wednesday.

Only 4-in-10 Americans said they could cover an emergency of $1,000 or more using funds from their savings account, the new Bankrate survey found. Although that’s roughly the same share of Americans who found themselves in this financial position last year, about 25% of Americans surveyed said they would need to cover an unexpected $1,000 expense using a credit card, the highest percentage on record, Bankrate said. 

“With 1 in 4 Americans telling us they’d react to a large emergency expense by using a credit card, their timing couldn’t be worse,” Mark Hamrick, Bankrate’s senior economic analyst, said in a statement.

That’s because credit card rates have jumped following the Federal Reserve’s series of interest rate hikes during the last year, which are designed to battle the highest inflation in four decades. At the same time, almost 7-in-10 Americans told Bankrate they are saving less due to inflation, placing more households in a precarious financial position just as the U.S. economy is edging toward a possible recession. 

Relying on credit cards to cover emergency expenses could cause a deeper financial hole given the recent surge in credit card rates, Hamrick said. The average interest rate on a new credit card is now 21.4%, while existing cards have an average rate of 19%, according to WalletHub. Those figures compare to 16.6% and 13.4%, respectively, in 2011. 

“On average, credit card interest rates are the highest we’ve seen and are slated to go higher as the Federal Reserve continues to hike,” Hamrick said. “Under the best of circumstances, this debt should be paid before costly interest charges hit the account.”

Adults between 18 to 26 as well as Americans who earn less than $50,000 said it would be more difficult for them to pony up $1,000 for an emergency compared with older and higher-earning respondents, according to the survey, which polled more than 1,000 people in mid-December.

U.S. families struggle as inflation and gas prices soar


Personal finance experts typically recommend that people have at least three months’ worth of income saved to tide them over in the event of a job loss, health problem or other unplanned situation that crimps their cash flow. 

Rising interest rates, higher prices due to inflation and job losses are the main three reasons people said they can’t save $1,000, the Bankrate survey found. 

99 working coin master spin generator 2022 no
buy amazon e gift card exciting offers discounts instant delivery
avakin life hack free avacoins without human verification irn post
bingo blitz free credits generator md hugging face
coin master free spins and coins generator 2023
genshin impact redeem codes january 2023 dexerto
get free followers famoid s trial service 100 free
nintendo free gift card code generator no survey no verification
working snapchat score generator 2023 trailblazer me
free tinder accounts 2023 gold account and password
free zems in zepeto 22 january 2023 infotecarios
match master free coins 67496 publisher publications issuu
generate stumble guys infinite gems free updated
TikTok Coins Free 2023 With This TikTok Coins Hack 2023 TUTORIAL (iOS & Android)
23 best sites to buy tiktok followers in 2023 outlook india
coin master spins generator 2023 md hugging face
amazon gift card free top 10 apps websites to try
free avakin life avacoin generator avakin life game
100 latest bingo blitz free credits generator 2023
pdf free coin master spin generator update 2023 vi7q
all redeem codes in january 2023 for free primogems and mora
get free followers famoid s trial service 100 free
free nintendo eshop gift card generator in 2022 rib3s apache
snapchat free score generator 2021 home
free tinder accounts 2023 new gold account and password
free infinite zems generator in zepeto 2023 tecnoguias
match masters free coins booster gift collection gamehunters club
free tiktok coins generator 2020 free tiktok no human uplabs
free stumble guys gems generator update 2023 vi7q
tiktok free coins hack . tiktok coins free . tiktok unlimited coins 2023 . ios & android

Leave a Reply

Your email address will not be published. Required fields are marked *