Some consumers not ready with emergency funds
A recent poll shows that some Americans may not have money in savings accounts, which may lead to a situation where they have to rely on credit cards for emergencies.
According to the National Foundation for Credit Counseling survey, 30 percent of respondents said they do not have money saved away. Experts have noted that having funds put away in savings is an important financial goal for consumers, as it affords them the ability to deal with sudden unexpected expenses.
In fact, the poll showed that 25 percent of consumers questioned would have to pay for emergency expenses with credit cards, while 29 percent said they would have to take out a loan.
“These people are on a very slippery slope when the inevitable emergency arises,” the NFCC said.
To be prepared for emergencies, experts generally agree that a consumer should have between three- and six-months worth of monthly expenses saved in an account. Along with helping deal with sudden car repairs or medical bills, savings can help consumers deal with loss of income due to unemployment.
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