Nearly one-third of US adults face financial difficulties or are “just getting by”, despite a slight improvement in well-being in the overall population, according to Federal Reserve report released today. The survey showed 30 percent or 73 million adults described their personal financial situation as difficult, but the rates of hardship were higher in black and Hispanic populations, compared with whites.
The Fed’s annual appraisal of the economic well-being of US households showed more adults would be able to withstand a modest financial disruption than in years past. The number of respondents saying they could not cover a USD 400 emergency expense or would cover it by selling something or borrowing money was down to 44 per cent from 50 per cent in 2013.
Even so, the Fed said, “Substantial shares of adults are struggling with their regular expenses or would struggle to cope with an unexpected hardship.”
The Fed spotlighted the continued impact of soaring healthcare costs on everyday Americans, with 10 percent of adults, or 24 million, carrying debt from medical expenses incurred over the last year. Costs for higher education were another key difficulty, with more than half of the adults who attended college taking on debt.
Overall, the picture is slightly improved, with 70 percent of Americans reporting they were living comfortably or doing okay financially, up from 69 percent in 2015 and 62 per cent in 2013. The report is based on a survey sent to almost 12,000 adults that drew responses from about 56 per cent of that sample population.