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67% of Americans Couldn’t Cover $1000 in Emergency Costs

Posted by Joe Gargiulo | Wed, Jun 01, 2016 @ 07:00 AM

A poll on the economy and personal finance reveals that 75% of people in households earning less than $50,000 a year and 67% of those in the $50 – 100,000 range would have difficulty coming up with $1,000 to cover an unexpected bill. Another 45% said they would need to borrow the funds.

Interviews were conducted April 14 – 18, 2016 by the Associated Press-NORC Center for Public Affairs Research (University of Chicago) via online sources, land lines and cell phones.

Plumber-Water_Heater.jpgThe Great Recession and lack of wage growth are believed to be contributing factors. In the same poll, 46% of workers said their wages have remained stagnant in the last five years and another 16% said they've seen salary cuts.

These results of the poll correlate to earlier findings:

  • In a 2015 study by the Federal Reserve, 47% of respondents said they either could not cover a $400 emergency expense or would have to sell something or borrow money.
  • Three CBS News and New York Times polls from 20 years ago or longer show a majority of Americans would have difficulty covering a $1,000 emergency.

The poll is effectively a litmus test because having the ability to cover modest emergency costs is recognized as a critical step in attaining financial health.

Other takeaways from the poll:

  • 66% describe their own finances as good, but 57% give negative marks to the national economy
  • 22% say the economy has recovered from the recession and 77% do not expect it to improve in one year
  • 57% describe the national economy as “poor” and only 23% think it will improve in one year
  • 54% have little or no confidence that they will be able to retire at their desired age

Well-aware of such consumer challenges, CrossCheck designed Multiple Check as a means for auto repair shops, contractors and building materials dealers to help customers and simultaneously increase sales. The program is simple: buyers write up to four checks that the seller deposits over a 30-day period on a mutually beneficial schedule. Customers receive what they need during the emergency while the merchant or contractor receives instant payments as guaranteed by CrossCheck. Learn more by downloading our free guide.

Multiple Check Insider's Guide

Written by Joe Gargiulo

Marketing Specialist Joe Gargiulo has 25-plus years in marketing, communications and copy writing. As a writer, he enjoys connecting story leads to all aspects of the human experience.