The Federal Reserve Bank of New York released some data and one point caught my eye. While the number is slightly better than previously reported, it is still alarming.
About 33% of Americans say they would be unable to raise $2,000 within 30 days in case of an emergency.
This is very alarming since nearly one in three people would be unable to meet an unexpected financial emergency. The reported number also includes people who say they would be unable to borrow $2,000 as well.
There is no replacement for a savings account to protect yourself in case of an emergency. Having a savings account or emergency fund is critical to protecting yourself for a multiplying disaster.
Having so many people facing such a crisis and considering the current climate of cutting public safety net programs must surely be a recipe for disaster.
While we all hope people would be able to care for themselves in the case of a financial emergency, the absence of the ability to raise funds would surely impact the ability to eat, heat, or get medical care as well.
So what is the realistic plan to assist such member of our country who would struggle in the case of a financial crisis in the absence of a public safety net?
If you have a credit or debt question you’d like to ask, just click here and ask away.