It probably comes as little surprise that many Americans would struggle to pay for a sudden expense if one were to arise.
According to a new survey from Credit Karma, 37% of Americans said they would be unable to cover a sudden expense. The percentage was highest among Generation Z respondents, with 46% saying they would be unable to cover an unexpected cost.
Most Americans faced a sudden expense in the past year, the survey found. According to Credit Karma, 78% of Americans reported having an unexpected expense arise during that time.
The survey also found that 26% of respondents said they could cover essential expenses for less than one month if they lost their main source of income today.
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Financial strain may help explain why credit card balances continue to rise. The Federal Reserve Bank of New York’s Center for Microeconomic Data reported that credit card debt increased by $21 billion in the second quarter of 2026, bringing the national total to $1.26 trillion.
The report also found that nearly 7% of people with credit card balances fell into serious delinquency, meaning they were more than 90 days past due.
“Most Americans have already faced a financial emergency this year,” said Courtney Alev, consumer financial advocate at Intuit Credit Karma. “Younger adults, especially, don’t feel ready for the next surprise expense and have little cushion to fall back on, which often means leaning on credit or dipping into savings to get by. The good news is that preparedness isn’t an all-or-nothing endeavor. Even little steps like getting a clear picture of where your money is going, setting aside a small amount toward an emergency fund and checking in on your finances before a bill forces you to can make the next unexpected expense more manageable.”
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