When faced with an unexpected $1,000 expense, more than one-third of Americans would borrow the money, according to a new Bankrate survey. That may include tapping their credit cards, seeking money from friends or family or taking out a personal loan.
Most would not turn to cash savings because they don’t have it, the personal finance website found.
Fewer than half of Americans, 44%, say they can afford to pay a $1,000 emergency expense from their savings, according to Bankrate’s survey of more than 1,000 respondents conducted in December.
That is up from 43% in 2023, yet level when compared to 2022.
“We’re just not wired to save,” said Brad Klontz, a certified financial planner and expert in financial psychology and behavioral finance. Our brains are instead programmed to focus on our immediate needs.
Wow, it’s like encouraging people to live on credit and debt is actually bad for people!
I seriously hate how much the US fucks over people who can’t make enough to even consider saving money; overdraft fees from banks, having to get loans and debt in order to pay for big expenses, punishing people who need to use credit by lowering their credit score… list goes on and on.