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by mossTechnician 14 days ago
How does that go for Americans who cannot afford to pay for a $400 surprise expense out of pocket?

https://www.federalreserve.gov/consumerscommunities/sheddata...

4 comments

That was debunked as a misleading interpretation, e.g. https://www.jpmorganchase.com/institute/all-topics/financial... . The graph very specifically says "...using cash or its equivalent".
> 77 percent of low-income households can cover an unexpected $400 expense, though many must cover it with disposable income or short-term credit... 43 percent of low-income households unable to weather small expense shocks might be able to pay them with access to additional credit.

I'm not sure if credit is the ideal solution, nor if additional credit would be beneficial.

Generally, lots of debt, but they still do it. I know people who go into debt for “fun” purchases, then complain that their credit card bills are so high they can’t afford anything
Let them eat crow.
I'm absolutely not saying this alone is sufficient - particularly if you're unemployed or your job truly doesn't pay a living wage. There are absolutely people who don't make enough to survive - and that's a bigger problem of course.