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Question EF3. Suppose that you have an emergency expense that costs $400. Based on your current financial situation, how would you pay for this expense?

Response Percent

Put it on my credit card and pay it off in full at the next statement 37

Put it on my credit card and pay it off over time 16

With the money currently in my checking/savings account or with cash 45

Using money from a bank loan or line of credit 3

By borrowing from a friend or family member 10

Using a payday loan, deposit advance, or overdraft 2

By selling something 7

I wouldn't be able to pay for the expense right now 13

Note: Number of unweighted respondents 11,400

from https://www.federalreserve.gov/publications/files/2023-suppl...



Hard to interpret this. It either shows that 55% do not have enough money to pay the expense, or that 82% may well have the money but 37% would prefer to pay it off after their next paycheck anyway.


I've seen people interpret "would use a credit card" as a sign something is wrong but for me it just means I like getting cashback.

Though to me it looks pretty dire - having to sell something, borrow from family/friends, etc. for 400 bucks is pretty terrible.


No, it's 35%. Credit card usage is fine if you can pay off the card.


The ones that can pay immediately, ok. But paying it over time for $400 is pretty much a sign of hardship.


What about the 45% who would just pay it off with cash/savings?


That question allowed respondents to select multiple. EF2 and EF7 give a very clear picture of the average person’s financial situation.


This puts at 35% those for whom $400 would be a hardship (don't have the money on hand). Still a significant amount.


Those numbers cannot be percentages, they add up to 133.




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