No Cushion, Big Trouble: 1 in 5 Cannot Cover a Week of Living Expenses

The majority of consumers are living with no room for mistakes, and many are one car repair or one medical bill away from economic ruin, according to the most recent OppFi Financial Health Survey published in the first quarter of 2025

With 1 in 5 surveyed U.S. consumers reporting they have less than one week’s savings, we’re not discussing a matter of personal finance anymore. It is now more of a systemwide warning sign.

This is significant in and of itself, but particularly so against the low unemployment and consistent job growth background. Consumers are employed, and there is still a significant percentage who are unable to afford seven days of basics from saved funds.

The OppFi survey tells us more than a statistic. It tells us how consumers view their own financial vulnerability and how lenders need to meet consumers where they are in life, while not trapping them. Let’s dive into what the data is telling us and what it is asking lenders to do.

OppFi Chief Executive Todd Schwartz said one of the most powerful dynamics is that perception is not always reality. Macro indicators such as hiring and GDP are still robust, but consumer apprehension is elevated.

Consumers are backing off from spending on premium goods and focusing instead on necessities, and in some cases, not spending anything. That behavior change is more due to fear than reality.

But in the current savings environment, the fear is not imaginary. According to the Financial Health Survey, 20% of consumers lack enough savings to last for one week.

Schwartz has pinpointed the erosion in that cushion of protection due to decades of medical and auto inflation that has risen faster than wage growth.

A single unexpected expense — like a car repair job or emergency room visit — can be financially devastating for consumers living paycheck to paycheck.

The Financial Health Network survey is on how pre-pandemic consumer behavior is coming back. Consumer expenditures fell during COVID, savings rates were strong, and credit scores reached record highs.

Now we’re starting to see that pattern turn around. Consumers are saving and spending less than in the pre-pandemic period, and that combination is tightening credit supply and payment stability.

Also, there is a bias toward considering credit history and scores in lending, but OppFi focuses on real-time affordability. Schwartz put it this way: “Consumers today are pricing life to perfection — there’s no slack in the line.” For lenders, that implies that even small economic shocks may reverberate through rates of repayment.

Furthermore, consumers are cutting back on spending and, in some instances, abandoning purchases altogether. That conserves cash in the short term, but is also a sign of increasing volatility. Lenders should consider that previous indicators may be behind the curve in reflecting borrower stress.

This renders FICO-only underwriting less effective. For after all, those very consumers who appear to be risky on paper are actually financially sound yet lack the credit history with which to demonstrate it. OppFi’s model bridges that gap, and the lending industry as a whole will do well to take notice.

Besides ensuring that emergency loans are available, OppFi also puts access in the context of the consumer journey. OppFi installment loans are paid in uniform amounts to align with cash flow and are reported to the credit bureaus so credit may be established.

The loans last on average nine months, and there are no origination fees or prepayment penalties.

In the subprime sector, lending responsibly is not merely minimizing risk, but is all about customer development. Schwartz calls OppFi a “graduation model” in that the intent is to upgrade users to lower-cost, prime products. That model is the opposite of the perpetual customer retention model in lending.

OppFi uses a ‘graduation model,’ intended to upgrade users to lower-cost, prime lending products.

It also keeps with the wider trend in the subprime category — that it is not static. Borrowers enter and exit subprime status due to income, life milestones, and economic conditions. As credit scores return to pre-pandemic highs, consumers are falling into subprime status in growing numbers — but many will not remain there.

Which is to say, those lenders who can build trust in the lean periods are able to hold on to relationships once customers upgrade to better credit segments. A nurturing and honest approach today is the pipeline of tomorrow’s quality borrower.

The OppFi survey brings the finances of vulnerable Americans into the light. It also proposes a model in which the credit industry is capable of rising to that challenge. With fair pricing, credit building, and customer dignity, lenders are in a position to address short-term needs without sacrificing long-term health.

If 1 in 5 consumers are not able to make it through the week, the industry cannot afford to look the other way.