Americans Are Losing Sleep Over Money, the Pandemic, and the State of the World

Sleepless Nights

The coronavirus pandemic has had a devastating impact on average Americans. Millions lost their jobs and are draining their savings or sinking into debt to pay everyday living expenses. Reopened businesses and relaxed lockdown restrictions have done little to help. A September COVID-19 financial impact survey of 1,500 Americans by home buying and selling site Clever finds many Americans still struggling to get by and losing sleep over, well … nearly everything.

woman on her phone in bed at night — zoranm/istockphoto

Who's Up

The survey’s findings suggest 84% of Americans have experienced sleepless nights since the beginning of the pandemic: 50% losing sleep about the COVID-19 pandemic itself and 49% attributing their insomnia to the current state of the world. Getting more detailed, respondents said they tossed and turned with worries about their children or families (44%); thinking about not being able to pay bills (40%) and losing income (37%); and about running out of savings (34%).

family worried about finances — Fertnig/istockphoto

Lost Job Stability

One of Americans’ biggest money worries is job stability – 40% are anxious about this, contributing to concerns over our ability to pay for unexpected expenses (40%) and running out of emergency funds (29%).

American dollars and cents — Ong-ad Nuseewor/istockphoto

Emergency Savings Are Gone …

At what was then six months into the pandemic, 37% of Americans reported having no emergency savings left. And 21% never had emergency savings in the first place.

man getting money out of the ATM — denizbayram/istockphoto

… or Almost Gone

Though not everyone had run through their savings, about 61% of Americans predicted their emergency funds would not last through the end of the year.

Debt Collector — bernie_photo/istockphoto

Scrambling to Get By

A substantial 74% of Americans are seeking additional income, taking on credit card debt, or digging into savings while also finding ways to cut spending (33%) to have enough money to live. About 19% have resorted to selling personal items.

Estimate Your Tax Bill Now — Rawpixel/istockphoto

Debt, Debt, and More Debt

Between September and April, when Clever conducted its first COVID-19 survey, the number of people reporting they were taking on additional credit card debt to cover expenses rose to 18% from 8% — more than 2.3 times. In addition to people shifting to using credit cards to survive, 1 in 4 Americans are taking on more non-mortgage debt as a result of the pandemic.

opening a paycheck — AndreyPopov/istockphoto

Living Paycheck To Paycheck

The 62% of Americans reporting they now live paycheck to paycheck is a jump from the 54% who reported it in April, meaning the financial picture is worse for many even since businesses have reopened and some jobs returned. Households earning more than $100,000 aren’t exempt: 42% said they were living paycheck to paycheck in September. All in all, Americans are 27% more likely to live paycheck to paycheck now than before the pandemic.

Speaking with Father — kupicoo/istockphoto

Turning to Friends and Family

As personal finances worsen, Americans look to friends and family for a bailout. Almost half of Americans (48%) reported helping out friends or family members financially as a result of the pandemic — but 45% of those who helped say it caused damaged relationships, lower credit scores, or financial problems of their own.

Mortgage Payments

In the initial crisis, many homeowners deferred their mortgage payments for three months. Now they may not be able to pay back the deferred installments: 46% of those who missed payments in 2020 are at least $2,000 behind on their mortgage.

Black man in a wheelchair cooking dinner at home — RealPeopleGroup/istockphoto

Changing Our Ways

The survey may not be all doom and gloom: While 40% answering regretted not having enough emergency savings or retirement savings (32%), the survey finds 41% saying they’ll put more into emergency funds, and save more for the future. Only 10% of respondents say they’ll return to their freewheeling habits once this crisis is behind us.