The coronavirus crisis is having a profound impact on the financial lives of Americans, despite the efforts by many to cut back on spending.
Since the outbreak began, 30% of respondents say they've experienced a decrease in household income, according to a new Bankrate survey. About 1 in 5 workers has applied for unemployment since March 13, and the unemployment rate surged to 14.7% in April. Under government orders, many non-essential businesses were forced to close. It's feared that a great deal of them may never end up reopening, dampening the hopes of a quick economic recovery.
"The pandemic is deepening the financial hardship for millions of Americans," says Greg McBride, CFA and Bankrate chief financial analyst. "Nearly one-third of households report lower income since the start of the pandemic, with half of those same households now having more debt and they are three times as likely to have seen their emergency savings also decline."
Bankrate asked 2,653 Americans about their debt (mortgage, auto, credit card, personal loan and student loan), emergency savings and household income. Below are the key findings from the survey.
Key takeaways:
_About 30% of Americans have reported a decline in income, while only 12% say they've seen an increase since the COVID-19 outbreak started.
_Nearly one in five respondents said their emergency savings fell.
_Around 16% of Americans have increased their debt.
