[Shivetya]

because that number is a lie and the replies made by those questioned keeps getting changed and twisted so as to serve the purpose of certain politicians

Go read [0] the entire survey yourself. In particular search for EF5B which is where the number that get misrepresented time after time. People need to quit taking for granted what they read, it is being used more to manipulate you than inform you. It is really distressing how easily people on this site are duped, I know you want to believe it but please just stop.

///* Question EF5B. How would a $400 emergency expense that you had to pay impact your ability to pay your other bills this month Response Percent I would still be able to pay all of my other bills in full 85 I could not pay some other bills or would only make a partial payment on some of them 14 Refused 1

Note: Number of unweighted respondents = 9,670. Question EF5B. How would a $400 emergency expense that you had to pay impact your ability to pay your other bills this month Response Percent I would still be able to pay all of my other bills in full 85 I could not pay some other bills or would only make a partial payment on some of them 14 Refused 1

Note: Number of unweighted respondents = 9,670. ///*

[0] https://www.federalreserve.gov/publications/appendix-b-consu...

[danans]

There is plenty of data beyond the $400 response on the Fed survey to support the argument that income inequality has hurt the American worker.

But even the $400 emergency expense story is more complicated that you present it to be. From the Fed survey results:

----- 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? If you would use more than one method to cover this expense, please select all that apply.

Put it on my credit card and pay it off in full at the next statement 33

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 6

I wouldn't be able to pay for the expense right now 12

Other (please specify) 0

Refused 2

--------------

Note that the survey instructions ask the respondent to "select all that apply", hence the numbers don't add up to 100%. The total percentage of people who choses some combination of responses that don't involve paying with cash or an immediately paid-off credit card is up to 49%, perhpas somewhat less depending on the degree of overlap between the buckets.

That's a very large percentage considering what small amount $400 is. Even if there were a lot of overlap and the percentage were half, 24.5%, it would still be staggering.

And regarding Question EF5B, per the answers to Question EF3, many of those 85% of people who said would pay their bills despite the emergency expense, would be able do so only because they went into some form of debt to pay the emergency expense.

[Miner49er]

What about question EF3? Most people said they would have to sell something, borrow money, or simply not pay it at all.

[lukevdp]

Here are the results to that question:

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? If you would use more than one method to cover this expense, please select all that apply.

Put it on my credit card and pay it off in full at the next statement 33%

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 6%

I wouldn't be able to pay for the expense right now 12%

Other (please specify) 0

Refused 2

[MiroF]

So a minority able to cover it with assets is what I'm seeing

[slg]

I don't see a financial difference between these two.

>Put it on my credit card and pay it off in full at the next statement 33%

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

If you are paying your credit card off in full every month, you aren't really going into debt, you are basically just working on a Net 30 payment schedule like a lot of businesses. Personally almost all of my monthly expenses (besides rent) go on credit cards that are paid in full every month. That method earns rewards and offers protection that wouldn't come if I did the exact same thing with my debit/checking account.

[danans]

It's a poorly worded question for sure. It really should have been broken into multiple parts:

Q: Yes or No: Do you have the money on hand to pay for a $400 emergency expense in totality without the need to borrow money or sell something to cover it.

If yes, would you pay with

- debit/cash/check

- a credit card that you will pay off at the next bill.

If no, which of the folowing methods will you use to pay?

- long term credit card debt

- ask a family member

etc ...