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One-third of Americans say they’d have trouble coming up with an emergency $2,000

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    One-third of Americans say they’d have trouble coming up with an emergency $2,000

    Marketwatch seems like a pretty a reputable organization to me.

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    One-third of Americans say they’d have trouble coming up with an emergency $2,000

    There’s a growing percentage who are too discouraged to apply for credit despite needing it

    By Steve Goldstein
    D.C. bureau chief

    A third say it would be difficult to come up with an emergency $2,000.

    About a third of consumers say they would have trouble coming up with an emergency $2,000, according to a new study released Monday.

    The New York Fed, as part of its survey of consumer expectations, has begun releasing the answers to questions about financial fragility. The study found around 67% said they were likely to come up with $2,000 in a month, meaning nearly 33% said they weren’t likely.

    The differences were most pronounced by credit score — only 11% of those with a credit score of 760 and above said they would have difficulty, versus 64% of those with a credit score of 680 and below.

    The survey is consistent with other findings. The more than one-third of families that had large fluctuations in their incomes were more likely than those with stable incomes to say they wouldn’t be able to come up with $2,000 for an unexpected need, according to a study by the Philadelphia-based nonprofit Pew Charitable Trusts released in March.

    The difference with the New York Fed report is the timeliness — it’s based on responses to a survey conducted in February. So it means that even an economy where the unemployment rate has been driven down to 4.7% hasn’t really changed the perceived vulnerability of Americans.

    The survey also found the share of respondents who were too discouraged to apply over the past 12 months despite needing credit rose to 7.1%, the highest level since June 2014. That’s up from 5.7% in October 2016.

    Perhaps less surprising, with the rise in mortgage rates, is the decreased desire to refinance mortgages. The likelihood of applying for a mortgage refinance over the next 12 months fell to 8.4% in February from 12.2% in October.

    Link: http://www.marketwatch.com/story/one...000-2017-03-20
    james.c.hendrickson@gmail.com
    202.468.6043

    #2
    Well, I see two problems here.

    1. People don't have savings (which we knew).

    2. (Possibly bigger problem) People think coming up with $2,000 for an emergency means using credit. This indicates people have no idea what it means to be prepared for an emergency. When they think of being prepared, having good credit is what they consider as necessary rather than having a savings account.

    Where in the world are we headed?
    Everything happens for a reason. Sometimes that reason is you're stupid and make bad choices.

    Comment


      #3
      Originally posted by GoodSteward View Post

      Where in the world are we headed?
      Keeping people uneducated is the key to staying in power.

      Comment


        #4
        Scary, but based on some of the conversations my coworkers have it is totally believable
        Brian

        Comment


          #5
          That is part of the reason why I have to lie about my finances to my extended family. They think $2,000 is this astronomical sum that only rich people can attain. Meanwhile, one of them easily spends over $2,000 per year in new clothes and another spends that much in alcohol. I doubt that they would be able to put $2,000 on a credit card. They would just borrow from people and may or may not pay it back.

          And yeah, they are pretty blunt about asking about finances.

          Comment


            #6
            Originally posted by james.hendrickson View Post
            One-third of Americans say they’d have trouble coming up with an emergency $2,000
            I'm surprised the percentage isn't much higher than 1/3. I think that's pretty good if it's accurate.
            Steve

            * Despite the high cost of living, it remains very popular.
            * Why should I pay for my daughter's education when she already knows everything?
            * There are no shortcuts to anywhere worth going.

            Comment


              #7
              Our survey back in January said fewer than half had savings they could tap for an emergency.

              The numbers were slightly higher than last year, so maybe there's some improvement. But it definitely shows that people aren't able to save - or don't think they're able to save.

              No one survey ever really shows the whole story, because it's just numbers or yes/no/sometimes answers. Personal finance is a lot more shaded than that. I know there are people who don't make much, but they also spend in crazy ways. I also know people personally who don't make much, are tremendous savers and good money managers - and are still struggling to save enough for retirement.

              But yeah this is a persistent American problem.

              Comment


                #8
                Originally posted by disneysteve View Post
                I'm surprised the percentage isn't much higher than 1/3. I think that's pretty good if it's accurate.
                This is referring to people borrowing 2k, not having 2k in cash. I believe the percentage is much much higher for coming up with cash without borrowing.
                Everything happens for a reason. Sometimes that reason is you're stupid and make bad choices.

                Comment


                  #9
                  Originally posted by GoodSteward View Post
                  This is referring to people borrowing 2k, not having 2k in cash. I believe the percentage is much much higher for coming up with cash without borrowing.
                  Ah, I missed that part. That explains it.
                  Steve

                  * Despite the high cost of living, it remains very popular.
                  * Why should I pay for my daughter's education when she already knows everything?
                  * There are no shortcuts to anywhere worth going.

                  Comment


                    #10
                    Originally posted by disneysteve View Post
                    Ah, I missed that part. That explains it.
                    Well, that is how I understand the article to be referring to. "Coming up with $2,000" and talking about credit and borrowing as the solution. I assumed this was intended to mean borrow $2K, or have that as an option. Including credit cards, a lot of people could come up with that. Cash, I hear most can't even get $500 in cash within a couple days.
                    Everything happens for a reason. Sometimes that reason is you're stupid and make bad choices.

                    Comment

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