( KTLA ) — A $1,000 unexpected emergency expense could derail the lives of more than half of all Americans, according to a new survey.
The survey was conducted by Bankrate , a financial analysis and comparison site.
Bankrate found that only 44% of Americans surveyed could afford a $1,000 emergency expense. That number is actually up one percentage point from the previous year, the company said.
Those 56% of Americans who couldn’t weather the storm said they would address that unexpected emergency charge in other ways. Most (21%) said they would use a credit card, 10% would borrow from loved ones and 4% would take out a personal loan. Only 16% said they would reduce their spending to address an unexpected emergency expense, Bankrate said.
Mark Hamrick, senior economic analyst for the site, said many Americans continue to “walk on thin ice” when it comes to emergency expenses.
Also discussed was the ever-present topic of inflation and rising prices.
Nearly two-thirds (63%) of Americans said inflation was causing them to save less for emergencies. On the flipside, however, 19% said they were actually saving more for emergencies specifically because of rising interest rates which are friendly to those putting extra away into their savings accounts.