"Approximately 62% of Americans have no emergency savings for things such as a $1000 emergency room visit or a $500 car repair, according to a new survey of 1,000 adults by personal finance website Bankrate.com."What's more, only 39% of respondents reported having a "rainy day" fund adequate to cover three months of expenses, and only 48% of respondents said that they would completely cover a hypothetical emergency expense costing $400 without selling something or borrowing money."
"Usually, they have some student debt, auto debt, and mortgage debt. And they usually have a revolving line of credit, too. These are prudent, well-educated people we're talking about. They use credit wisely, when they need to make a big-ticket purchase...or pay for private schooling."What we look for is a clean report. No late payments. The level of debt doesn't bother us. I mean, the banks wouldn't lend if they thought there was a problem."Besides, everybody uses debt now. It makes sense. With rates this low, it's better to borrow than to use your own money. Debt is just a financial tool."