Mint. The firm determines the score by taking into account over 70 parameters such as income, expenses, cash flows, liquidity, loans, insurance, goals and investment.Households are dealing with uncertainty around cash flows in the short to medium term.
Further, with the virus still going strong, consumer confidence is low. Madan Sabnavis, chief economist, CARE Ratings, said this full year will be a washout in terms of liquidity access for households.If given a pink slip, 71% of salaried individuals cannot manage their expenses beyond six months, according to data from ArthaYantra.
This is largely because of lack of liquidity and the absence of an emergency fund, said Vyakaranam. “Post covid, the situation has worsened and this will continue.