If you are a San Antonio resident who has more credit card debt than savings, you are not the only one. According to a recent survey, about 30 percent of Americans currently carry more credit card debt around than what they have stashed away for a rainy day. The survey has been performed by Bankrate.com each year since 2011, and the most recent results for the number of Americans with more credit card debt than emergency savings is the highest in the survey’s history.
The findings make sense, given that many Americans simply do not have the means to save more money and high household expenses are keeping spending levels high.
The U.S. Department of Commerce recently reported that the personal savings rate in the country dropped to just more than 4 percent in November 2013. Evidence also suggested that although Americans are not saving much money, they did spend a lot during the holiday season, many of them doing so with credit cards.
Bankrate.com also found that few Americans are currently comfortable with the amount of savings they have.
It is very important for Texans to have sufficient emergency savings funds. Having a healthy emergency savings account can help individuals afford sudden expenses, such as car repairs or medical bills. Of course, times are still hard for many households and it is not easy to put money away. And, in some cases even when a household has a solid savings account, an unexpected financial crisis — such as a failed investment, job loss or a medical condition — can lead to terrible debt.
Individuals who struggle with debt may want to talk to a skilled bankruptcy attorney about debt relief options. It may be possible to wipe the slate clean and build a new financial footing by pursuing bankruptcy protection.
Source: CBS News, “Close to half of Americans have more credit card debt than savings,” Constantine Von Hoffman, Feb. 18, 2014