After being unemployed or hospitalized for quite some time, a number of consumers are forced to use their savings. When their savings are not enough, they may start building up credit card debt. A survey conducted by Bankrate revealed that 37 percent of consumers in Iowa and throughout the country have credit card debt that is more than their savings.
The survey was conducted on over 1,000 participants, and Bankrate's chief financial analyst stated that most of them have lack of savings and barely any available credit on cards. This ends up becoming an issue since emergencies can occur frequently and when consumers least expect them. According to a survey conducted by American Express, it was revealed that 50 percent of Americans faced unexpected expenses in the past year. Out of those expenses, 46 percent was due to car issues and 44 percent was due to medical.