The good news is that the pinging sound your car’s engine was making for the last month has finally stopped. The bad news is that the sound stopped because the engine stopped working. You take the car to a local mechanic who tells you it will cost $1,000 to repair.
How would you handle this type of unexpected emergency? Would you be prepared?
Only about 4 in 10 Americans (37 percent) say they would pay for an unexpected expense with savings, a Bankrate survey found. Almost a quarter more (23 percent) say they’d pay for an emergency by reducing spending on other things.
Credit cards would be an option for 15 percent and another 15 percent would borrow from family or friends. That leaves nearly 10 percent who have no idea what they’d do.