We measure consumers' readiness to face emergency expenses. Based on data from a representative survey of US consumers …, we find that financial readiness varies widely across consumers, with lowest-income, least-educated, unemployed, and … black consumers most likely to have $0 saved for emergency expenses. For these consumers, even a temporary financial shock …

representative survey of US consumers. Even though the survey data from the borrowers vary somewhat from the data provided by the … consumers who carry credit card debt might be liquidity constrained and not have cheaper borrowing alternatives, the high cost … of paying off credit card debt could exacerbate existing inequalities in disposable income among consumers. …