Only about 4 in 10 Americans have enough savings to cover an unplanned expense of $1,000, meaning more than half would need to find other means to pay for an unexpected car repair or emergency room visit, according to a Bankrate survey.
Just 44 percent of the 1,004 U.S. adults surveyed have enough money saved, yet this number reflects the highest percentage capable of covering the expense in eight years of polling, up from 39 percent last year.
“While the ability to cover an unplanned $1,000 expense from savings is the best we’ve seen over the past eight years, the majority of Americans still cannot afford to do so,” says Greg McBride, CFA, chief financial analyst for Bankrate. “The reliance on borrowing is still high, with more than one-third of households having to turn to a credit card, personal loan, or family and friends in the face of unplanned expenses.”
