Blacks 43% more likely to use emergency savings since COVID-19
Blacks 43% more likely to use emergency savings since COVID-19

Blacks 43% more likely to use emergency savings since COVID-19

Two years have passed since the inception of COVID-19, and black Americans are among those still facing difficulties in recovering financially.

A new study reveals that black respondents are 43% more likely than the total respondents to have used their emergency savings since the COVID-19 pandemic began.

That examination by Real Estate Witch was based on an online survey conducted in late January by 1,000 people who were asked about several topics, including their “financial situation, debt and concerns” related to the pandemic.

A robust 71% of families have not recovered financially from the pandemic, and 90% of Americans are stressed about it. About 32% are even more stressed than last year. Americans are also concerned about cash shortages, as 70% have lived on paycheck once under COVID. Another 48% live under these conditions now.

At the same time, 52% of parents are convinced that it will take up to five years for their finances to recover, and one in seven do not trust that their finances will ever recover. Another troubling finding is that 41% of Americans have no emergency savings, and 40% believe their savings are running out this year.

Danetha Doespokesman for Smart Real Estate Agent, provided insight into why black Americans were more likely than other respondents to have used emergency savings since the beginning of COVID-19. Real Estate Witch is part of Clever Real Estate, an educational platform for home buyers, sellers and investors.

Doe said the legacy of socio-economic discrimination and racism in the United States created a precarious situation for black Americans, who have historically been locked out of building generations. wealth.

“This created a vicious circle where if a black family’s finances were already strained, the pandemic further aggravated the situation and made it difficult to recover,” she says.

However, there is uplifting news. Doe said the survey showed that 37% of black Americans are optimistic about their economic recovery and expect their finances to recover within the year. She added that the survey showed that 33% of black respondents report that they have no non-mortgage debt and 43% are less stressed about the pandemic than they were last year.

Doe says despite the hand that was given to Black Americanstheir debt levels are still manageable and their financial confidence is still intact.

“Trust is the biggest determining factor in wealth building, and although the system has sought to remove the economic confidence of black Americans, it is still present.”

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