Most Americans can’t afford a $1,000 emergency.
A majority, or 64%, of Americans don’t have enough cash on hand to handle a $1,000 emergency expense, according to a survey by the National Foundation for Credit Counseling, or NFCC.
Only 36% said they would tap their rainy day funds for an emergency. The rest of the 2,700 people polled said that they would have to go to other extremes to cover an unexpected expense, such as borrowing money or taking out a cash advance on a credit card.
Many respondents, 17%, said they would borrow money from friends or family. Another 17% said they would neglect other financial obligations – like a credit card bill or mortgage payment – in order to find the needed cash.
Alternatively, 12% of the respondents said they would have to sell or pawn some assets to come up with $1,000 and 9% said they would need to take out a loan. Another 9% said they would get a cash advance from a credit card, according to the NFCC.
An earlier study by the same organization found that 30% of Americans have zero dollars in non-retirement savings. A separate study by the National Bureau of Economic Research found that 50% of Americans would struggle to come up with $2,000 in a pinch.
Unemployment and global debt worries continue to hurt the economy, adding financial pressure on families that increasingly rely on food stamps.
Nearly 15% of the U.S. population relied on food stamps in May, according to the United States Department of Agriculture.
The number of Americans using the government’s Supplemental Nutrition Assistance Program (SNAP) – more
Continue reading Unemployment, Economy Contribute to Record Use of Food Stamps
Payrolls at U.S. companies increased by a slow 114,000 in July, suggesting modest job growth in the wake of debt reduction and fears of slower growth, in an employment report released by ADP.
It was the 18th straight month of job growth in the ADP report.
The ADP report covers only private-sector employment, and not government jobs.
The
Continue reading Debt and Slow Growth Keeps Hiring at Slow Pace
Along with signs the economy is slowing and consumer sentiment is declining we see that Americans cut back on their spending in June for the first time in nearly two years and their incomes grew by the smallest amount in nine months. This is another troubling sign for an economy that is barely growing.
Consumer spending
Continue reading Consumers Lower Spending, Save More as Economic Growth Slows
The debt overhang and unemployment continue to hurt the economy.
The Thomson Reuters/University of Michigan final index of consumer sentiment fell to 63.7, the weakest since March 2009, from 71.5 in June.
Consumer spending from April through June showed the smallest gain since the second quarter of 2009, when the economy was in recession, the Commerce Department
Continue reading Debt, Unemployment and Slow Growth Continue to Hurt Economy
Weak consumer spending, slow job growth and tight credit are restraining growth into the second half of the year.
Growth slowed in eight of the Fed’s 12 bank regions in June and early July, the Federal Reserve’s “Beige Book” reports. That marks the worst economic showing this year.
The Fed’s report found that the job market remained
Continue reading Weak Consumer Spending, Slow Job Growth and Tight Credit are Restraining Growth – Beige Book
Consumers in the U.S. are increasingly using credit cards to pay for basic necessities as income gains fail to keep pace with rising food and fuel prices.
The dollar volume of purchases charged grew 10.7 percent in June from a year ago, while the number of transactions rose 6.8 percent, according to First Data Corp.
The cause
Continue reading Credit Card Use Increases – Shows Gas and Food Inflation and Low Wages
Confidence among U.S. consumer fell in July to the lowest level in more than two years, adding to concern that weak employment gains and falling home prices may keep households from spending.
The Thomson Reuters/University of Michigan preliminary index of consumer sentiment decreased to 63.8, the weakest reading since March 2009, from 71.5 the prior month.
Continue reading Consumer Confidence Lowest in Two Years, Reflecting Employment, Debt and Housing
Consumers are becoming more worried about their income. As a result, consumer spending may become lower.
The share of Americans foreseeing a drop in wages over the next six months compared to those expecting an increase is at its highest level since October 2010, according to the Conference Board’s consumer research center.
The research center expects that
Continue reading Spending Slows Due to Low Income Expectations
The 3-percentage-point gap between yields for three-month and 10-year Treasuries indicates the economy may grow 1.1 percent in the 12 months ending June 2012, a study by the Fed Bank of Cleveland says. That’s less than half the central bank’s current forecast, and may delay any rate increase from the zero- to-25 basis point range
Continue reading Bond Rates Show Slow Growth in Economy
