Two in Three Households Assess Themselves as Strapped for Cash Between Paydays
According to the recent Household Financial Wellbeing Index by banking giant ING, two out of every three households report that they don’t have enough funds to live comfortably between paydays.
One out of three of those households charges necessities on credit cards between paydays, while nearly half estimate that they would still need to take home another $300 per week to live comfortably. However, nearly four out of five respondents said that they would rather save a raise of 5% than spend it.
The ING Household Financial Wellbeing Index is released quarterly and ranks levels of wellbeing using six different indicators, including mortgage debt, credit card debt, household income, investments, savings and ability to pay their bills.
According to the index, only 9% report being satisfied with their present take-home pay. And among those who reported themselves as being cash strapped between paydays, 15% reported that they are chronically strapped for cash. 35% of those who feel they are often cash strapped reported using money from their savings to catch up on household expenses during shortfalls, while 31% reported using credit cards to get them through to the next payday. One out of ten report having borrowed from their family.