News Most Americans Can't Handle An Unexpected $500 Expense

Discussion in 'The Howard Stern Show' started by BethSucks, Jan 6, 2016.

  1. BethSucks

    BethSucks Well-Known Member Staff Member

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    Most Americans can't handle a $500 surprise bill
    While the recession may be long over, many Americans are still living one bill away from financial disaster.

    Despite the stronger economy, a lack of emergency savings that would help them weather an unexpected expense such as a health crisis or car breakdown remains a serious handicap. In fact, about 63 percent of Americans say they're unable to handle a $500 car repair or a $1,000 emergency room bill, according to a new survey from Bankrate.com.

    Its findings shed light on a disconnect between rosier economic figures, such as an unemployment rate that's declined steadily since 2010, and what continues to be the worrying financial reality for many Americans. Real median household income has slumped since 1999, when it reached a high of $57,843, and now hovers at about $54,000.

    But given the increasing costs of everything from food to health care, that has left many families struggling to put money aside for rainy days.

    Even though most people would think such financial shocks are rare, the fact is they're increasingly common, partly because American workers are more likely than ever to see big swings in income due to job losses or cuts in hours.

    About six out of 10 American households experienced a financial shock during the last year, with major car repairs and lost income ranking among the most common, The Pew Charitable Trusts found in a study published last year.

    "These things do happen, and if you don't have the financial resources to handle it, it can be catastrophic if you are living on the edge," said Bankrate.com senior investing analyst Sheyna Steiner.

    While this is only the second year that Bankrate ran this specific survey, its prior studies about Americans' emergency savings rates have uncovered similar results. The bottom line: They haven't seen much improvement in their ability to handle unexpected financial shocks during the past few years.

    But Steiner noted that Bankrate's survey also found that about one out of five consumers making less than $30,000 said they had enough emergency savings set aside to handle an unexpected bill.

    This suggests that financial cushions aren't out of reach for lower-income households, although it may require more discipline than for Americans earning at least $75,000, given that about half of the latter said they have enough set aside to cope with a $500 or $1,000 expense.

    It can be daunting to build an emergency savings fund of between three to six months of income while also juggling bills and paying down debt. That's why Steiner recommends aiming to set aside a smaller amount, such as $1,000, as a first step toward handling unexpected bills.

    Given that so many are unprepared for a car breakdown or big medical bill, how do Americans say they would cope in such a situation? About 23 percent said they would cut back on spending in other areas, while 15 percent said they would need to rely on credit cards. Another 15 percent said they would turn to friends or family for help.

    As for paring spending, Americans said dining out would be the first place they would cut back, while only one-third said they would be very or somewhat likely to cut spending on alcohol. In the face of trying times, Americans may not want to imagine giving up that glass of wine or beer while contemplating a growing stack of bills.
     
  2. Mark Mayonnaise

    Mark Mayonnaise You look like a tree! VIP

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  3. Chibbs

    Chibbs Well-Known Member

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    If this is true and any of these people are homeowners, there will be another HUGE financial crisis based on mortgage defaults.

    Figures.
    I just paid $7K for a new roof on my house.
     
  4. Lemmy

    Lemmy Douchebag Extraordinaire Gold

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    I can handle the financial shocks ok. I am sure as fuck glad that I never squandered my "sick time" at work. I'll burn through about 200 hours before I get back. I'd be fucked without it.
     
  5. SouthernListen

    SouthernListen I don't follow the crowd. Sorry about that. VIP

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    And yet...

    [​IMG][​IMG][​IMG][​IMG][​IMG][​IMG] upload_2016-1-6_12-15-35.jpeg [​IMG]
     
  6. BethSucks

    BethSucks Well-Known Member Staff Member

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    How did you cook the beans?
     
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  7. Ganggreen87

    Ganggreen87 Well-Known Member

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    I'll say it again
    We are so fucked in 20 years. We have a huge percentage of people in say Ohio or Michigan who traditionally worked unskilled labor jobs at a livable wage. They just required a high school degree, forty years later they retire to Florida

    Those jobs are gone but that culture is still there in MANY states. What are all these people with no job skills or education gonna do?

    That's the problem, it isn't livable wages it is livable sustainable jobs. Raising salaries isn't the solutions good jobs are and we have none of those now outside of the high tech industry.
     
  8. reno

    reno VIP Extreme Gold

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    Don't worry, more and more Americans are on food stamps. At least they won't starve.
     
  9. MobyDick

    MobyDick Well-Known Member

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    You just credit card it and the circle of debt continues.
     
  10. Artie Laugh

    Artie Laugh ****

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    Damn, whats the square footage of your house?
     
  11. stanggirl

    stanggirl There's no replacement for displacement VIP

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    I'm guilty of living slightly above my means. I purposely bought a smaller condo with a pretty affordable mortgage knowing full well that I like to "treat" myself.

    My husband is the same way!!! Aaahhhh!!!

    But, my bills are paid and my credit score is high and I'm changing my spending habits.

    What I find kind of funny is the holier than though attitude some have. ..like here...that, omg....wanting a new car and nice stuff is just so silly and "beneath" them

    Get over yourselves
     
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  12. Mark Mayonnaise

    Mark Mayonnaise You look like a tree! VIP

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    Blackened and tossed with kosher salt
     
  13. SouthernListen

    SouthernListen I don't follow the crowd. Sorry about that. VIP

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    That seems about right for an average sized home that's two story or steeply pitched. Done right, of course. You can always find cheaper.
     
  14. stanggirl

    stanggirl There's no replacement for displacement VIP

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    Yeah....always hears about 10 grand for an average house...that's here on the east coast
     
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  15. LawyerLarry

    LawyerLarry Mr. Fuckmoney in the Bank VIP

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    Most americans are pathetic bums.
     
  16. stanggirl

    stanggirl There's no replacement for displacement VIP

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    Bullshit....
     
  17. HS Cult Leader

    HS Cult Leader Elite Member Gold

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    What's everyone worried about? Help is on the way! :salute:


     
  18. Captain

    Captain Alto, Blanco y Guapo Gold

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    Toss the iPhone for the old flip top.
    Toss McDonalds, Chipotle and Starbucks for Safeway, Kroger or Vonn's.
    Toss cable for books.

    If you can't compute how you are going to pay down your debt, you shouldn't be in on the deal in the first place. I'm sick of people who make $40k a year blaming the government and the banks for the fact that they got "pressured" into buying an $850,000 house they "found out" they could not afford.
     
  19. SouthernListen

    SouthernListen I don't follow the crowd. Sorry about that. VIP

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    My brother did ok but had a wife and kids to support. I went over there one day and they had new granite counters and a tile back splash to replace their 3 year old corian countertop. A couple years later I was lending him money. Meanwhile, our countertops and kitchen remained mediocre.
     
  20. Lou Loomis

    Lou Loomis Feel the Gern

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    How many Chriza call-out threads do we need, bro ??? C'mon. :fil:
     
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