(CNSNews.com)- Nearly half of American households would not be able to afford a $400 emergency, according to a recent report from the Federal Reserve.
The Federal Reserve Report on the Economic Well-Being of U.S. Households in 2014 says that 47 percent indicate that they would have great difficulty handling an unexpected $400 expense.(CNSNews.com)- Nearly half of American households would not be able to afford a $400 emergency, according to a recent report from the Federal Reserve.
The Federal Reserve Report on the Economic Well-Being of U.S. Households in 2014 says that 47 percent indicate that they would have great difficulty handling an unexpected $400 expense.
“Specifically, respondents indicate that they simply could not cover the expense (14 percent); would sell something (10 percent); or would rely on one or more means of borrowing to pay for at least part of the expense, including paying with a credit card that they pay off over time (18 percent), borrowing from friends or family (13 percent), or using a payday loan (2 percent),” the report says.
Even though it has been over 5 years since President Barack Obama signed the Affordable Care Act into law, 47 percent of Americans responding to the Federal Reserve study claimed that they “avoided medical treatment because of the cost.”
While medical care was avoided, work hours were sought after. With over 8 million Americans currently unemployed, even many of those with work, would like more hours at the job, according to the report.
“It does seem there is some pent up demand for additional work if it was available,” David Buchholz Assistant Director of Consumer and Community Affairs for the Federal Reserve says in a federal video produced for the report.
“We asked people if they would prefer to work the work about the same amount of hours they are working now, more, or fewer – if that work were available at the same rate of pay. About a third of full time workers and half of part-time workers tell us they would prefer to work more hours if they could."
