By Consumers For Quality Care, on January 29, 2021
According to CBS News, a recent poll shows that fewer than four in 10 Americans have enough money to cover an unexpected $1,000 expense, such as a trip to the emergency room.
The poll illustrates the economic insecurity and growing inequality that has resulted from the coronavirus pandemic.
“The precarious state of Americans’ emergency savings has been further set back by the pandemic, with nearly as many needing to borrow to cover a $1,000 unplanned expense as those that can pay for it from savings,” Greg McBride, Bankrate’s chief financial analyst, said in a statement.
COVID-19 lockdowns have been the cause for soaring unemployment, requiring many Americans to dip into their savings.
Eighteen percent of the more than 1,000 adults surveyed said they would finance a $1,000 expense with a credit card and pay it off over time, while 12% would borrow from family members or friends. Another 8% said they’d take out a personal loan.
Experts believe that recovery will begin to take hold once vaccines are more broadly distributed. The poll shows that 44% of Americans agree, believing that their finances will improve in 2021.