1 in 3 Americans would go into debt to cover a $1,000 emergency, survey finds

(InvestigateTV) — A new Bankrate survey finds 33% of Americans say they would have to borrow money to cover a $1,000 … — using a credit card, personal loan, or borrowing from a family member.

The same survey found 30% of respondents would pay such an expense from savings, while 17% said they would use their income.

Mark Hamrick, senior economic analyst at Bankrate, said the borrowing figure reflects a broader financial reality for many households.

“The reality is a lot of Americans are living paycheck to paycheck. The affordability challenges, the inflation result that we’ve all been experiencing here in recent years, really is among the main reasons why Americans are not saving more money — in fact they tell us that in the survey,” Hamrick said.

Hamrick said struggling to build an emergency fund is a common problem, and there is a path to changing it.

“We begin small, if necessary. That means we can create a high yield savings account that can pay 3 and a half, 4 percent annually, that’s better than being charged interest to the tune of 20 to 30 percent. And if we use direct deposit, if we pay ourselves first doing that, essentially automating our savings, that amount should build over time,” Hamrick said.

Starting with as little as $10 to $25 deposited into a high-yield savings account every week or two weeks can help grow the fund over time, according to Hamrick.