The country is experiencing decreases in unemployment and increases in household income, both positive signs for consumers in South Carolina and elsewhere. However, many families are still struggling financially, particularly when it comes to credit card debt. Consumers in the nation have over $900 billion in credit card balances, which roughly equates to $7,300 per household. While this amount is increasing, a growing of people have adequate savings to pay off their credit cards if necessary.
According to an online personal finance website, almost 60 percent of families have sufficient funds to eliminate their debt. However, 21 percent of the people surveyed indicated that they did not have enough money to pay those balances. Furthermore, 12 percent responded that they had no savings at all. This indicates that many households are experiencing financial uncertainty.
The number of Americans who have adequate savings is actually at a eight-year high. Many people surveyed stated that are placing greater emphasis on establishing an emergency savings account. Also, there is a greater motivation among some responders to pay off debt.
The survey revealed some demographic differences. Baby boomers and members of Generation X were the groups most likely to have neither credit card debt or emergency savings. Those over age 73 tended to have more emergency savings than credit card debt, followed closely by millennials. All age groups indicated that they needed to focus more on saving more.
Positive trends in the nation’s economy are good news for many South Carolina residents. However, there are families that are still dealing with significant credit card debt. Anyone wishing to reduce or eliminate this debt should contact a respected bankruptcy attorney for assistance. An experience lawyer can help clients understand their options and develop a plan best suited to get their finances under control.
Source: wfaa.com, “Most have enough savings to cover credit card debt”, Daniel B. Kline, Feb. 27, 2018