If you were hit with a $1,000 emergency, would you be able to cover it?
For the majority of Americans, the answer is no.
Only 39% of Americans say they would be able to pay for a $1,000 unplanned expense, according to new reportfrom Bankrate.
“Even though unemployment is down and there’s been a recent uptick in wages, we aren’t seeing the needle move savings,” said Greg McBride, chief financial analyst at Bankrate.
Unexpected bills aren’t uncommon. More than one-third of households had a major unplanned expense last year, the survey showed, with half of those costing at least $2,500.
Nearly one in five Americans said they would put the expense on a credit card, the report stated, which usually makes the cost even higher as you pay off the interest.