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Takeaways
- According to a survey by PYMNTS intelligence and Splitit, over half of Americans worry about being able to pay for emergency expenses this coming year.
- Parents, those who earn less than $50,000 per year, and the younger generations are more concerned.
- The research also showed how consumers use installment plans to cover unexpected expenses.
A recent survey found that more than half the Americans are concerned about their ability pay for unexpected expenses this year.
53 percent of respondents were at least somewhat worried about paying for an emergency expense. This was according to a recent survey conducted by PYMNTS and Splitit. Splitit is a payment platform which allows installment plans.
Parents, lower-income families, and younger generation were more concerned by the prospect of an unexpected expense. About two thirds of respondents earning less than $50,000 a year said they were at least somewhat concerned with covering an emergency expense. This was a larger share than those earning $50,000 and more. The research found that close to half of those earning six-figure incomes or more felt the same.
Nearly half (49%) of those who experienced an emergency expense of over $250 during the past year paid it in cash. The rest used credit. The research also showed that many consumers used installment payment plans or Buy Now-Pay Later (BNPL), in order to handle unexpected costs.
This was more common in younger generations. When covering emergency expenses with credit cards, more than half of Gen Z and over a third of millennials and bridge—or older—millennials opted to use an installment plan. In comparison, 28% Gen Xers and 16% baby boomers paid emergency credit card costs in installments.
