Americans & Money — Are We Prepared for Emergencies

Bankrate did a survey a couple of weeks ago about emergency preparedness. The banking advisory firm’s Greg McBride said the survey found that 56% of us will not be able to cover an emergency situation costing us $1,000.

The good news in the survey is the 44% who can pay the $1,000 bill is the highest number Bankrate has seen in eight years.

“Emergency savings and the $1,000 threshold are really an indication of how much people are struggling, that they are that close to the edge financially,” McBride said.

Most who can’t cover the bill would have to go into debt and borrow from a bank or a family member.

Of those with college degrees, 60% say they can cover the $1,000 bill. So could those earning over $50,000 a year.

It all comes down to the ability to save money. And rising costs due to inflation is making it more difficult for Americans to save. Bankrate says over half of those surveyed say higher costs are keeping them from saving more.

Here’s a breakdown of how those without enough money to cover an emergency bill of $1,000 would get it done:

• *44% — pay from savings
• *20% — charge a credit card and pay over time
• *15% — pay the bill and cut other expenses
• *10% — borrow from family or friends
• *4% — take out a personal loan