Author Topic: Two-Thirds of the US Would Have Trouble Coming up with 1K  (Read 2392 times)

GardenBaker

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Two-Thirds of the US Would Have Trouble Coming up with 1K
« on: May 20, 2016, 10:23:44 AM »
Saw this online today that two thirds of the US couldn't come up with $1,000.00 easily should an emergency arise  http://finance.yahoo.com/news/two-thirds-us-struggle-cover-110221321.html#

nanu

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Re: Two-Thirds of the US Would Have Trouble Coming up with 1K
« Reply #1 on: May 20, 2016, 11:02:06 AM »
These come up every so often. I remember one saying around 50% (I think?) wouldn't be able to come up with $400 without relying on credit cards.
Personally, I find this mind boggling and scary at the same time. I just don't understand how people can live so close to the edge without going mad (or at least pinching every single penny they can lay their hands on until they aren't so close to a financial chasm).

exterous

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Re: Two-Thirds of the US Would Have Trouble Coming up with 1K
« Reply #2 on: May 20, 2016, 01:11:11 PM »
Quote
Yet when faced with an unexpected $1,000 bill, a majority of Americans said they wouldn't be especially likely to pay with money on hand, the AP-NORC survey found. A third said they would have to borrow from a bank or from friends and family, or put the bill on a credit card. Thirteen percent would skip paying other bills, and 11 percent said they would likely not pay the bill at all.

Those numbers suggest that most American families do not have at least $1,000 stashed away in an accessible savings account, much less under their mattresses, to cover an emergency.

Seems like a potential stretch to me. I couldn't find the survey itself to see exactly how it was worded but I know from my situation I likely wouldn't pay the bill with money on hand but that has nothing to do with my ability to pay the bill or how much money I have 'stashed away'. That 33% group is categorized with options I wouldn't necessarily group together. For those needing to skip or not pay the bill thats one thing but I'd put it on a credit card long before I'd ask a friend or family member to borrow money (And then pay the card off as soon as the bill arrived) and I don't think using a credit card necessarily indicates the same level of 'inability to pay'

vivophoenix

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Re: Two-Thirds of the US Would Have Trouble Coming up with 1K
« Reply #3 on: May 20, 2016, 01:17:53 PM »
i am not sure if this is comedy or shame.

it just kinda sucks. and i am glad i am not one of those people.


but to be fair why should you in a world of social nets and easy credit stop to think about needed an extra 1k. credit cards will let you carry a balance unto eternity. 

Stashaholic

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Re: Two-Thirds of the US Would Have Trouble Coming up with 1K
« Reply #4 on: May 20, 2016, 01:54:47 PM »
Quote
Yet when faced with an unexpected $1,000 bill, a majority of Americans said they wouldn't be especially likely to pay with money on hand, the AP-NORC survey found. A third said they would have to borrow from a bank or from friends and family, or put the bill on a credit card. Thirteen percent would skip paying other bills, and 11 percent said they would likely not pay the bill at all.

Those numbers suggest that most American families do not have at least $1,000 stashed away in an accessible savings account, much less under their mattresses, to cover an emergency.

Seems like a potential stretch to me. I couldn't find the survey itself to see exactly how it was worded but I know from my situation I likely wouldn't pay the bill with money on hand but that has nothing to do with my ability to pay the bill or how much money I have 'stashed away'. That 33% group is categorized with options I wouldn't necessarily group together. For those needing to skip or not pay the bill thats one thing but I'd put it on a credit card long before I'd ask a friend or family member to borrow money (And then pay the card off as soon as the bill arrived) and I don't think using a credit card necessarily indicates the same level of 'inability to pay'

I'm part of a different nationwide survey panel, which wasn't used on this, and I came across similar questions. One part asked if I could cover each of the following amounts: $500, $1000, $5000, $10000 (choices from easily to very difficult). Then it asked how I would pay for each one. That ranged from borrowing from family, own savings to paying with credit card. I have money to cover all those ranges, so I chose I can pay "easily", but I chose "pay with credit card" on every level. Then each one asked if I will pay the credit card off immediately from savings, would hold a balance for x time, etc. I chose "immediately". My guess is that the survey above already took that in consideration and only reflect those who did not choose to pay immediately and kept a balance.