Unexpected Expenses Are A Problem For Most People

When you’re living paycheck-to-paycheck it’s often hard to pay all your bills. So what do people do?

Well, according to a new survey:

  • 83% of Americans working full-time have experienced an unexpected expense in the last year.
  • The most common unexpected expenses include:
    • Vehicle repairs/replacement (48%)
    • Medical expenses (35%)
    • Travel for things such as a funeral, sick relative or unexpected move (28%)
    • Replacing/upgrading major appliances that stopped working (28%)
    • Home repairs (27%)

So, how do folks pay for these expenses?

  • Well most resort to credit cards, with 41% turning to plastic to cover the costs. In addition,
    • 24% have used money they planned to use for household bills
    • 23% used money from an emergency fund
    • 16% took out a loan
    • 15% borrowed from friends and family 

Source:Yahoo Finance