More Americans are dipping into their savings accounts and emergency funds, thanks to the coronavirus crisis. They are also increasingly worried about running out of money.
A little more than half of participants in a recent LendEDU survey said they had already tapped their savings. That’s up from 44 percent in a similar survey taken just two weeks earlier.
About 62 percent said they were concerned they would blow through all of their savings. Nearly nine of every 10 recently laid-off workers thought they would run their bank accounts dry.
Seventy-two percent said they were concerned that the crisis would seriously damage their retirement savings and plans. That’s up nine percentage points from two weeks ago.
“As the economy deteriorates and more folks get laid off, there are feelings of uncertainty and long-term instability, which is reflected in the finances of Americans,” said Mike Brown, the LendEDU analyst who wrote the report. “People are dipping into savings more, nervous about retirement, and unsure of their job security, and this will likely continue moving forward.”
LendEDU, which runs a marketplace for student and personal loans, conducted the survey of 1,000 adults on April 1. The previous survey was done on March 18.
On the plus side, the legislative action taken recently regarding student loans — including freezing interest on federal loans at zero percent — may have allayed some fears. The March 18 results found that 63 percent of respondents were worried that they wouldn’t be able to make a student loan payment. The number had dropped to 60 percent in the April 1 survey.
Some other results from April 1:
- One-third of respondents said the passing of the federal stimulus package helped relieve financial, job-related or other concerns. Half said it had not. The rest weren’t sure or didn’t answer.
- Of those who were still working, 55 percent said they worried about job security.
- Of homeowners, 60 percent worried about making mortgage payments, up from 57 percent in the March 18 survey.
- Respondents estimated they had spent an average of $631.06 on food and supplies due to coronavirus, up from $335.65 two weeks earlier.
- Of credit card users, 39 percent said they had taken on more credit card debt to cover coronavirus-related expenses than they had wanted.
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