Bankrate findings raise questions on consumer spending
Normally here at Tematica we love to get new data, but time to time we get confirming data that puts a sour taste in our mouth. New findings from Bankrate offer support for our Cash-Strapped Consumer investing theme, and it ties with something we’ve been talking about on our Cocktail Investing podcast – rising consumer debt with a Fed that has been and is poised to continue increasing interest rates. Barring a pronounced move higher in wages, which we haven’t seen, that’s a recipe for more pressure on consumer spending – a key driver of the domestic economy. We continue to question if consumers will spend those tax legislation related benefits or get their financial house in order.
Only 39% of Americans say they would be able to pay for a $1,000 unplanned expense, according to new report from Bankrate.
Unexpected bills aren’t uncommon. More than one-third of households had a major unplanned expense last year, the survey showed, with half of those costing at least $2,500.
Nearly one in five Americans said they would put the expense on a credit card, the report stated, which usually makes the cost even higher as you pay off the interest.
If you were hit with a $1,000 emergency, would you be able to cover it? https://t.co/qPGaAsIPbE
— CNNMoney (@CNNMoney) January 18, 2018
