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Survey Data Reveals 1 in 6 Americans Can't Make Their Monthly Bill PaymentsSAN FRANCISCO, Jan. 23, 2020 /PRNewswire/ -- New data from a survey conducted by mobile banking company Varo Money, Inc confirms something that many have long speculated: the average American doesn't have enough money to make ends meet. More than 1,100 participants across the country ages 18 to 75 provided responses, revealing the stress points in their personal budgets, as well as the amount of money they would need to feel more confident in the state of their financial health. The survey was based on questions prepared by Varo Money and conducted through SurveyMonkey. Keeping the Lights On The vast majority of respondents, however, stated that their overall expenses have increased in the past 12 months (78%) and expect it to increase again in the next (71%), and utilities is one area where they may be least likely to find relief. The U.S. Energy Information Administration has forecast further growth in residential electricity prices in 2020 (source). What's in the Fridge Regardless of whether it's within budget, food is also an area that the majority (54%) of those surveyed feel they're spending too much on. According to the Bureau of Labor Statistics, the average annual expenditure on groceries in the U.S. is $4,464 per person, while diningout runs Americans an average of $3,459 (source). Most respondents would prefer to cut back their overall food budget as it relates to both categories (52%). Show Me the Money The Federal Reserve Bank reports that the median household income in the United States has seen continuous growth since 2015 (source), but the results of our survey indicate a clear disconnect between national trends and individual experience. The majority (63%) of respondents have either seen their income stagnate at the same level or decrease in the last 12 months. Despite this, people remain optimistic: 43% of survey respondents stated that they expect their income to rise steadily over the next five years. Robbing Peter to Pay Paul Without enough money to pay the bills, Americans are scrambling to find ways to cover the cost. The majority (51%) try to cover the financial gap by cutting back their budgets wherever they can. In other instances, they'll dip into their savings (47%) and even borrow from family (15%). Borrowing from financial institutions is also a common practice, with 29% admitting to using credit cards to manage the financially unmanageable, 7% using payday cash advances, and 7% taking out personal loans. "There is a clear struggle taking place for many Americans; it's difficult to find financial confidence when there's simply not enough money to go around," said Colin Walsh, CEO of Varo Money. "Varo's mission is to help ease these common financial burdens for our customers. Our banking solutions with no monthly fees, including free checking accounts and zero-penalty overdraft, help ensure we serve all of our clients fairly no matter what their financial situation looks like. It's difficult to get ahead and live without the constant burden of financial stress, and there's no reason for unnecessary fees to hold you back even further." About Varo Bank account services provided by The Bancorp Bank; Member FDIC. Contact: View original content to download multimedia:http://www.prnewswire.com/news-releases/survey-data-reveals-1-in-6-americans-cant-make-their-monthly-bill-payments-300992178.html SOURCE Varo Money, Inc. |