A survey shows that medical bills are feared the most

By Mark Huffman of ConsumerAffairs

• 55% of Americans fear unexpected medical bills the most, followed by 53% who worry about job loss.

• Nearly 1 in 2 Americans have delayed major life milestones due to financial struggles.

• The average American has $9,899 in emergency savings, but 1 in 16 has less than $500 saved.

Surveys have shown that more than 50% of Americans essentially live paycheck to paycheck, meaning an unexpected expense is a big problem. A new survey by Western & Southern shows just how fragile many household budgets are.

According to the survey, a majority of Americans now say their greatest financial fear is being hit with an unexpected medical bill, cited by 55% of respondents. Job loss closely follows at 53%.

These concerns are grounded in real vulnerability: 2 in 5 Americans admit they're least prepared to handle a medical emergency, while over one in three say they're unready for the possibility of unemployment.

Generation Z (ages 1827) stands out as the most financially fragile. A signifficant 44% report they couldnt afford sudden medical costs, and 38% feel unequipped to weather a job loss. Their peers in the millennial and Gen X demographics arent far behind.

Stress, delayed milestones and career strain

This financial unease extends beyond bank accounts into nearly every corner of American life. About 69% of respondents say money worries have impacted their mental health, a figure that jumps to 76% for Gen Z.

Relationship tension was reported by nearly half (47%) of all participants, while 43% said financial stress affected their job performance or career choices. Among Gen Z, the toll is even more severe: 62% experienced strain in relationships and 60% said their work was impacted.

Nearly half (48%) of Americans have postponed major life events due to financial constraints, from buying a home to starting a family or switching careers. Millennials reported the highest rate of delay, with 56% deferring significant milestones.

Emergency savings

While the average American has $9,899 saved for emergencies, that number masks troubling disparities. One in 16 has less than $500 stashed away, and more than a third couldn't handle an unexpected $1,000 expense out-of-pocket.

Generation Z is especially at risk. Their average emergency savings total just $7,317, and nearly 1 in 5 say theyd exhaust their funds in under a month without income. By contrast, 52% of baby boomers say they could survive six months or more.

Despite this, younger generations are more optimistic about their financial future. Forty-two percent of Gen Z and 38% of millennials say they feel more financially secure than they did five years ago, a sharp contrast to 42% of Gen X, who feel less prepared today.

Side hustles and borrowing

To cope with economic uncertainty, many Americans are diversifying their income streams. Sixty percent have taken on second jobs or side hustles, with Gen Z leading the charge at 68%.

Still, when emergencies hit, not everyone can rely on their savings.Thirty-seven percent of Americans have borrowed an average of $4,300 to cover unexpected expenses. Gen Z was again the most affected, with 39% reporting a serious financial crisis in the past year.

When asked how theyd cover emergency costs, Gen Z was least likely to use credit cards (41%) and most likely to borrow from family or friends (38%).

Insurance company debunks some of the myths surrounding insurance

By Mark Huffman of ConsumerAffairs

• Car color does not influence the cost of auto insurance; despite popular belief, factors like make, model, safety record, and driver profile are what determine your rate.

• Older and experienced drivers typically pay lower premiums, and those over age 55 can access special discounts.

• Comprehensive coverage and the right liability limits are essential for full protection, debunking myths about minimum coverage and assumed inclusivity for theft or natural disasters.

Auto insurance has emerged as a major inflation driver and a persistent pain point for consumers, as rates continue to climb and some companies pull out of climate-prone states. Mercury Insurance, based in California, recently called out some persistent myths, saying the more consumers know how insurance works, the better off theyll be.

Theres a lot of misinformation out there when it comes to auto insurance, said Justin Yoshizawa, director of Product Management State for Mercury Insurance. We want to help consumers separate fact from fiction so they can make smart, informed decisions when shopping for coverage.

Among the most pervasive myths debunked by Mercury Insurance is the mistaken belief that a cars color influences insurance costs. Despite long-standing rumors, whether a vehicle is a flashy red or a muted white, color plays no role in how insurers determine premiums.

Instead, rates are calculated using more meaningful information such as the vehicles make, model, safety record, and likelihood of theft, alongside the drivers age, driving history, and sometimes credit background.

Older drivers often pay less, not more

Age is another misunderstood factor. Contrary to the myth that premiums rise as drivers grow older, Mercury Insurance maintains that rates typically decrease with experience, with drivers in their mid-50s often enjoying the best prices.

Seniors may see premiums increase later in life, but can access discounts, such as those for drivers over 55 who complete approved accident prevention courses. Retirees and part-time drivers, who log fewer miles, are also frequently eligible for lower rates.

Mercury also addressed the influence of credit scores on auto insurance rates. A drivers credit-based insurance score, derived from their credit history, can affect premiums, as its considered a solid indicator of claims risk. Those with strong credit often pay less.

Another widely held misconception is that comprehensive coverage is included or that basic insurance will always cover events like theft, vandalism, or natural disasters. In reality, only drivers who opt for both comprehensive and collision coverage are fully protected from these risks. Consumers are urged to assess whether the additional coverage is worth the investment based on their cars value.

Liability coverage

Relying solely on state-mandated minimum liability coverage also poses risks. Mercury Insurance and industry experts recommend drivers opt for more substantial liability protectionas much as $100,000 per person and $300,000 per accidentto avoid significant out-of-pocket expenses after a major collision. People with considerable assets are advised to consider an umbrella policy for additional security.

Further, insurance follows the car, not the drivera fact that disproves the idea that a friends policy will cover your car if they are involved in a crash. Generally, its the car owners policy that pays, though state laws vary.

Lastly, business use of a personal car is typically not covered by personal auto insurance. Those using their vehicles for work or sharing them with employees should secure commercial vehicle insurance.

Select school supplies are priced under $1

• Walmarts back-to-school sale features over 200 rollbacks and 2,000+ items under $10, with full supply lists starting under $10.

• Budget-friendly school lunch bundles let parents pack 10 lunches for under $20, with one-click shopping available.

• Parents can get everything on their childs school supply list with one click for under $10.

With retailers like Target and Dollar General preparing for the back-to-school season, Walmart is the latest big-name store to announce its back-to-school sale.

Some of the highlights: a full back-to-school stock-up for under $65 and school supplies at lower prices than last year.

We understand how important it is for families and teachers to save time and money when preparing for the school year, Denise Incandela, executive vice president, Fashion, Walmart U.S., said in a news release.

As the go-to destination for back-to-school shopping, were proud to offer another year of incredible value including school supplies, must-have styles and essentials.

School supply checklist

Walmart is offering school supplies at prices lower than last year, and heres a look at some of the deals:

• More than 200 back-to-school rollbacks

• 100+ supplies priced under $1

• 1,000+ supplies priced under $5

• 2,000+ supplies priced under $10

On top of that, shoppers can get Walmart's back-to-school essentials list which is priced under $10 with just one click. Heres whats included:

• Pen+Gear 5-inch Blunt-tip Kids Scissors, School Supplies, Multi-Purpose, Blue: $0.92

• Pen+Gear Crayons, Assorted Colors, 24 Count: $0.25

• Pen+Gear Pink Block Erasers, 2 Count: $0.47

• EXPO Dry Erase Markers, Chisel Tip, Black, 2 Count: $2.47

• Pen+Gear Wide Ruled Filler Paper, 10.5" x 8", 150 Sheets: $0.97

• Pen+Gear School Glue Sticks, Washable/Disappearing Purple, 0.21 oz 2 Count, Dry Time 3 Min: $0.25

• Pen+Gear Sharpened Colored Pencils, Assorted Colors, 12 Count: $0.50

• Pen+Gear Letter Size 3-Prong Paper Folder, Green: $0.25

• Pen+Gear Wide Ruled 1-Subject Notebook, 8" x 10.5", Blue, 70 Sheets: $0.45

• Pen+Gear Pocket Highlighter, Chisel Tip, Yellow, 2 Count: $0.88

• Pen+Gear #2 HB Unsharpened Wood Pencils, Yellow, 24 Count: $0.92

• Pen+Gear Lightweight Plastic Pencil Box with Snap-on Lid, Clear, 1-Pack: $0.97

Pack lunches for less

In addition to supplies, Walmart also has deals on school lunch favorites.

Similar to the school supply checklist, shoppers can take advantage of Walmarts one-click kids lunch essentials. The list includes everything you need to make 10 school lunches for under $20. Heres what you get:

• Great Value Concord Grape Jelly, 18 oz: $1.98

• Great Value White Sandwich Bread, 20 oz: $1.42

• Great Value Creamy Peanut Butter, 16 oz: $1.94

• Fresh Banana, Each: $0.28/each ($2.80 total)

• Smartfood Popcorn White Cheddar Flavored Popcorn Snacks, 0.625 oz Bags, 10 Count Multipack: $5.37

• Welch's Fruit Snacks, Mixed Fruit, 10 Count Snack Box, 0.8oz Snack Packs, Gluten Free: $2.97

• Capri Sun Roarin' Waters Fruit Punch Wave Flavored Water Kids Drink Pouches, 10 Ct Box, 6 fl oz Pouches, Crisp, Light, Thin: $2.68

Walmart also has other one-click food options depending on your needs and preferences, including a healthier lunch option (under $20), a dorm food basket (under $50), and a snack stock-up (under $25).

All of Walmarts back-to-school deals are available online and in-store, as well as with any pick-up or delivery option.

Texas judge says the Consumer Financial Protection Bureau exceeded its authority

• Texas judge rules CFPB lacked authority to bar medical debt from credit files

• Decision preserves lenders ability to consider medical debt in credit decisions

• Industry groups hail ruling as vital for accurate credit reporting

A federal judge in Texas has voided a Biden-era Consumer Financial Protection Bureau (CFPB) rule that sought to ban medical debt from appearing in consumer credit reports, handing a significant victory to credit reporting agencies and lenders.

In his opinion, Judge Sean D. Jordan of the U.S. District Court for the Eastern District of Texas concluded that the CFPB overstepped its statutory authority under the Fair Credit Reporting Act (FCRA) by trying to bar the inclusion of medical debts in credit reports. The Bureau has no such power to define what in a consumer report is permissible, Judge Jordan wrote, adding that Congress alone determines the permissible purposes for which credit reports may be used.

The CFPB issued the rule in the closing days of the Biden Administration, aiming to prevent credit reporting agencies from listing medical debts, even if coded to obscure the nature of the medical treatment. The rule also would have blocked lenders from considering medical debts in credit decisions, which the administration estimated could have erased nearly $50 billion in medical debts from the records of approximately 15 million Americans.

Congress has also been considering a measure that would have vacated the rule.

The CFPB going beyond their statutory authority to eliminate all medical debt from credit reports is irresponsible and a clear example of regulatory overreach, Sen. Mike Rounds (R-S.D.) said. He warned that the rule could lead to banks having a less clear credit picture and limit access to credit for consumers.

Credit industry applauds the action

The Consumer Data Industry Association (CDIA) and the Cornerstone Credit Union League challenged the rule, arguing it exceeded the Bureaus authority and violated the FCRA and the Administrative Procedure Act. When the Trump Administration assumed office, the CFPB reversed its stance and joined the industry in seeking to vacate the rule. However, intervenorsincluding two individuals with medical debt and two clinics assisting patients with related issuestried to keep the rule in place.

Ultimately, Judge Jordan sided with the industry groups, declaring the CFPBs action unlawful. [The] FCRA expressly allows creditors to obtain and use properly coded medical-debt information in credit decisions, but the Medical Debt Rule would prohibit them from doing so, he wrote. As it now recognizes, the Bureau was powerless to promulgate such a rule that flouts a federal statute by functionally rewriting it.

Dan Smith, President and CEO of the CDIA, applauded the ruling. We applaud the courtsdecision to vacatethe prior administrations medical debt rule, he said. Americas financial system is the best in the world because it is based on a full, fair and accurate credit reporting system. Information about unpaid medical debts is an important element in assessing a consumers ability to pay.

Smith added that the decision ensures lenders maintain access to complete credit information, which he argued is critical for responsible lending and consumer access to financial products.

It remains unclear whether the intervenors or other consumer advocates plan to appeal the ruling.

Danone issues nationwide recall after finding hard plastic in popular yogurt toppings

• Select YoCrunch yogurt products are being recalled due to potential plastic pieces in the topping dome, which can be a choking hazard.

• The recall affects multiple flavors sold across the U.S., including Oreo, M&Ms, and Nestl Crunch.

• Consumers are urged not to eat the affected products and can request a refund or replacement.

YoCrunch yogurt fansheres an important heads-up: Danone North America, the company behind YoCrunch yogurts, has voluntarily recalled several popular products because the dome-shaped toppers may contain small, hard plastic pieces.

The recall, announced by the U.S. Food and Drug Administration (FDA), includes a variety of YoCrunch yogurt cups with mix-in toppings like M&Ms, Oreo cookie pieces, and Nestl Crunch bits. These products were distributed nationwide and could still be sitting in your fridge.

Whats going on?

Danone says the issue was traced back to a third-party supplier that provides the dome-shaped toppers used for the crunchy toppings. Some of those toppers may include pieces of plastic that could pose a choking hazard or cause injury if consumed. While no injuries or illnesses have been reported so far, the company issued the recall out of an abundance of caution.

This is not a contamination issue with the yogurt itself just the plastic dome that holds the toppings. Still, if you have any of the affected products, its best not to eat them.

Which YoCrunch products are affected?

The recall includes the following six-ounce multipack and single-serve yogurt varieties:

• YoCrunch Oreo 6oz 4-pack

• YoCrunch M&Ms 6oz 4-pack

• YoCrunch Nestl Crunch 6oz 4-pack

• YoCrunch M&Ms Vanilla Lowfat Yogurt 6oz

• YoCrunch Oreo Vanilla Lowfat Yogurt 6oz

• YoCrunch Nestl Crunch Vanilla Lowfat Yogurt 6oz
  

For a full list of the UPCs and expiration dates, you can visit the official recall page on YoCrunch.com or FDA.gov.

What should you do if you have one?

If you have one of the recalled YoCrunch yogurts, Danone asks that you not eat it. Instead, take a photo of the products UPC and expiration date, then discard the yogurt. You can use that information to request a refund or replacement through YoCrunchs website or by calling their toll-free number listed on the recall notice.

If youve already eaten one and feel fine, theres no need to panic again, there have been no reports of injury. But if you experience anything unusual, it's always smart to consult a health care provider.

A quick reminder

YoCrunch says it takes product safety seriously and is working closely with retailers and the FDA to remove affected items from shelves. The company also emphasized that this issue was limited to specific lots and that their other products are not affected.