Four in 10 can't cover an emergency expense of $400, Fed survey finds

[TomCADem]

Source: Marketwatch

Small emergency expenses still challenge many Americans after nearly a decade of economic recovery, a new survey released by the Federal Reserve on Tuesday found.

The Fed’s new survey of household economics and decision-making found 41% could not cover a $400 emergency expense using cash in 2017. That’s actually a slight improvement, since 44% could not in 2016, 46% could not in 2015 and only 50% could in 2013.

Those that couldn’t afford the expense turn to credit cards or borrowing from family or friends, while only 5% would turn to a payday loan or similar product.

The inability to pay a bill also highlights the vulnerability of many Americans — 22% say they expect to forgo payments on some of their bills. Nearly half of those who skip bills let their credit cards go unpaid, racking up huge interest rate charges in the process.

Read more: https://www.marketwatch.com/story/four-in-ten-cant-cover-an-emergency-expense-of-400-fed-survey-finds-2018-05-22

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Of course, don't let this dose of reality affect Fox News/Sinclair's efforts to describe the current economy as a miracle under Trump due to his tax cuts to the rich.

[jberryhill]

1. The thread so nice, it got posted twice

https://upload.democraticunderground.com/100210646200

[ck4829]

2. But the Dow broke a new record! Surely that makes up for this, right? Right?

I mean, can't you poor people just be happy for the Dow?!

[True Dough]

3. That's probably how it plays out in Drumpf's near-empty head

All that matters is the he and the truly rich remain at the top of the heap, hoarding all they can.

[Flaleftist]

6. They just don't get it.

All they have to do is buy a bunch of stocks and live off the dividends. Easy peasy lemon squeezy.

[MiniMe]

12. That doesn't mean cash in the pocket

[hatrack]

4. But the economy is STRONG!!!!!

[inwiththenew]

5. "Overall, 74% of adults say they were doing OK or living comfortable"

Seems to be a disconnect somewhere in there.

[zipplewrath]

7. Comfortable with debt

Unfortunately what that indicates is that many people are comfortable using debt as the primary method of addressing unexpected expenses, even as small as $400.

[iluvtennis]

9. Folks likely respond "doing OK" based on their budgets. You're able to live paycheck to paycheck,

but if the unexpected "gotcha" comes in the month, you don't have the disposable funds to pay for it. I think that is what it means.

I grew up poor and understand what it is to live paycheck to paycheck. You just get by. My parents didn't have a bank account they could fall back on in times of need. When upoextected stuff came up (like a car needing to be repaired), we went to relatives to ask to "borrow" money. I put borrow in quotes, cause living paycheck to paycheck, there was no way they could pay anyone back.

[LanternWaste]

11. I don't think the one denies the other. nt

I don't think the one denies the other.

[dembotoz]

8. but they can all use the 1000 dollar bonus checks we all got due to tax cut law

still waiting for mine...must be in the mail

[Yavin4]

10. The answer is make it harder for people to get access to debt.

Then they will fight and vote for better wages.

[MichMan]

13. ..Or they might lose their jobs when their car breaks down

and they can't borrow the $$ to get it repaired.

I understand your point, but I'm not clear on why not allowing the poor to borrow is helping them somehow.

[Yavin4]

14. Because that's the ONLY way to get them to organize, vote, and fight for better wages.

Debt is harder to get in Europe. That's why they have stronger unions and better social programs. Debt gives people the illusion that they have money when they do not.