Most Americans couldn’t afford a $1000 emergency expense, according to a new survey by consumer services company Bankrate.
Fifty-nine percent of Americans would be unable to “to pay for a major unexpected expense, such as $1,000 for an emergency room visit or car repair,” the survey reveals.
This is a three percent increase on the figure for last year.
The increase appears to have been driven by inflation and high interest rates.
The cost of eggs increased 182% between January 2021 and December 2024, while ground beef increased 41%, whole chicken 30% and milk 18%.
“We are essentially a paycheck-to-paycheck nation,” said Mark Hamrick, senior economic analyst at Bankrate.
“Fewer Americans have the equivalent of a financial safety net to cover inevitable unexpected expenses, despite low unemployment and steady growth.”
In the survey, around three-quarters of respondents said they were saving less to meet unforeseen expenses because of inflation, high interest rates, or a change in income or employment status.
Many respondents said they would have to use credit cards to pay for emergency expenses.
Upon taking office this week, President Trump issued an executive order aimed at delivering “emergency price relief” for families and easing the cost-of-living crisis. The 12-month inflation rate has risen for the last three months.
The executive order placed the blame firmly on the Biden administration.
“Hardworking families today are overwhelmed by the cost of fuel, food, housing, automobiles, medical care, utilities, and insurance,” said the order.
Trump has directed government officials to look for ways to reduce housing costs and boost supply, lower healthcare and appliance costs, and scrap environmental policies that are raising the cost of goods.