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By Editor, Bear Market
If something happens to you tomorrow, do you have an emergency fund to pay the unexpected bill?
Many American’s don’t.
According to a survey released on June 9th, 2020 by “Harris Poll on behalf of HomeServe” 25% of American have no emergency savings fund… Nothing.
As of this writing there’s an estimated 255 million adults in the US… That means there are approximately 64 million American adults who have no money saved for an emergency.
One third of homeowners have less than $500 in an emergency fund. And already more than 4 million homeowners aren’t paying their mortgages.
In a separate report by Bankrate.com, 16% of American’s now have more debt since the coronavirus pandemic, lockdowns, and mass unemployment began in Mid-March.
Low income households are faring even worse…
According to Gallup an estimated 95% of low-income households have either gotten laid off or lost income in the last 3 months.
Low income households are those making less than $36,000 per year.
These horrible stats are due to a combination of things… All related to the coronavirus pandemic.
- The coronavirus caused lockdowns and business closures.
- These leading to mass unemployment.
As of this writing there are 26 to 27 million Americans now getting unemployment benefits.
And this doesn’t include a total of 42.6 million Americans who applied for unemployment benefits in the last 3 months.
Some of these people who applied but haven’t gotten benefits yet are still waiting and going through the process. Others have gone back to work. While other applications were denied.
These numbers are bad now. But with the continued lockdowns and slow reopening of things nationwide, people are in a race against time for their savings to run out… If they have any to start with.
The clock began ticking on this massive economic issue in March when most states in the US began locking their cities and states down.
And it went into a slight delay with the government started sending out stimulus checks on April 9th 2020… But this was band aid at best.
Now we’re 3 months into this…
If things don’t get back to normal soon people who have little to no emergency funds will get hammered.
And in life; things always come up.
Your car needs fixing.
Your pet needs to go to the vet.
Your kid went to the emergency room.
A pipe burst in your house…
And on and on.
As an adult, you know things always come up.
And there are an estimated 64 million Americans who have no emergency fund to protect them.
What happens when these things come up and people don’t have any money to pay for them?
People will either go further into debt. Or they’ll stop paying certain bills to continue feeding their kids.
Because one things for certain… If they can avoid it – people won’t stop feeding their kids.
These low to no emergency funds combined with the continued mass unemployment will have huge and wide-ranging negative effects on us all if things don’t get back to normal soon.
To find out more about the wide ranging negative impacts of mass unemployment click here.
Regards,
Editor
Team Bear Market
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