A new study shows that more than half of Americans can’t afford a major emergency expense, and even more are worried about paying everyday living expenses.
A new study by Bankrate reveals that only 44% of people asked said they could afford to pay for an emergency expense of one thousand dollars, and many would simply add it to personal debt.
“One-third of those Americans instead would borrow for that and about a fifth of Americans would use a credit card. And this is a time when credit card interest rates are as high as we’ve ever seen,” Mark Hamrick, a Senior Economic Analyst with Bankrate said.
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Personal debt in 2023 increased for Ohioans by nearly 2% from the year before, according to Wallet Hub.
Hamrick says people should do their best to increase their savings by taking advantage of high-yield accounts currently being offered by banks.
“Our advice is for people to have a dedicated savings account, essentially on autopilot where you have direct deposit going into an account of bribes, high yield savings, where you can get some return on that, but it’s also liquid where you can get at it,” Hamrick said.
The Bankrate study also reveals two-thirds of people polled are worried about their ability to pay for immediate living expenses, which makes adding savings an additional challenge.
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