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Key Takeaways
- More than half of Americans say they worry about their ability to pay emergency expenses this year, according to a recent survey by PYMNTS Intelligence and Splitit.
- The concern is more widespread among parents, those earning less than $50,000 a year, and younger generations.
- The research also highlighted how consumers are using installment payment plans to handle unexpected expenses.
More than half of Americans say they worry about their ability to pay emergency expenses that could pop up this year, according to a recent survey.
Fifty-three percent of respondents said they were at least somewhat concerned about covering an emergency expense, according to a survey of more than 7,000 consumers conducted earlier this year by PYMNTS Intelligence and Splitit, a payment platform that enables installment plans.
The prospect of an emergency expense was a greater source of concern among parents, lower-income households, and younger generations. About two-thirds of respondents with annual incomes under $50,000 said they would be at least somewhat worried about covering an emergency expense, a greater share compared to those earning $50,000 or more. But close to half of those with six-figure or larger incomes felt the same way, the research found.
About 43% of those who had an emergency expense costing over $250 in the past year reported covering it with cash, while nearly half of those surveyed used a form of credit. The research also highlighted many consumers are using installment payment plans or Buy Now Pay Later (BNPL) to handle unexpected expenses.
This was more common among 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. By comparison, 28% of Gen X and 16% of baby boomers elected to pay emergency credit card expenses in installments, the research found.
