A new study from Achieve highlights the fragile state of household finances in the U.S. It shows that 42% of consumers see their primary bank account fall below $50 at least once a month, and 30% lack a financial cushion for a $5,000 emergency, underscoring the financial challenges faced by millions of Americans.
Why It Matters: With 56% of respondents reporting a major financial hardship in the past year, including job loss or medical expenses, the report highlights how unplanned costs can drive consumers deeper into debt.
By the Numbers:
- 42% of consumers say their primary bank account falls below $50 at least once a month
- 21% face this issue weekly
- 60% have less than $50 in their account at least once every six months
- 30% lack funds for a $5,000 emergency
Demographic Insights: Among those whose accounts frequently drop below $50:
- 27% have household incomes above $50,000
- 43% are Millennials
- 70% experienced a significant financial hardship in the past year
- 59% carry over $1,000 in unsecured debt
Financial Planning Challenges:
- 48% need at least a month to prepare for a new $250 expense
- 17% require three or more months to manage such an expense
Debt’s Impact:
- 36% say debt negatively affects their mental or physical health
- 41% worry about never getting ahead financially
- 60% report that debt affects 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 introduced the Debt Fit™ Score, a financial health tool that ranges from 0-100.
- 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)