A new study from Achieve highlights the fragile state of many household finances in the U.S. It reveals that 42% of consumers see their primary bank account dip below $50 at least once a month, while 30% have no financial safety net for a $5,000 emergency, underscoring the challenges facing millions of Americans.
Why It Matters: With 56% of respondents reporting a major financial hardship in the past year, ranging from job loss to medical expenses, the report demonstrates how unplanned expenses can push consumers further into debt.
By the numbers:
- 42% of consumers say their primary bank account falls below $50 at least once a month
- 21% face this situation weekly
- 60% have less than $50 in their primary account at least once every six months
- 30% have no financial backstop for a $5,000 emergency
Demographic insights:
- Of those whose accounts frequently dip below $50:
- 27% have household incomes over $50,000
- 43% are Millennials
- 70% experienced a major financial hardship in the past year
- 59% have over $1,000 in unsecured debt
Financial planning challenges:
- 48% need to plan a month or longer for a new $250 expense
- 17% require three or more months to prepare for such an expense
Debt’s impact:
- 36% say debt negatively affects their mental or physical health
- 41% worry they’ll never get ahead financially
- 60% report debt issues spilling over into other areas of their lives
Credit utilization:
- 30% have nearly maxed out their credit cards and revolving debt
- Only 38% maintain a credit utilization rate at or below the recommended 30%
What’s new: Achieve has introduced the Debt Fit™ Score, a financial assessment tool ranging from 0-100 that measures debt health.
- The national average Debt Fit™ Score is 56
- 28% of respondents scored in the “Good” range (67-100)
- 64% scored in the “Fair” range (34-66)
- 8% scored in the “Poor” range (0-33)
