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Studies

24% of Americans Have More Credit Card Debt Than Savings

David Andrew 3/8/16

Many Americans are still in a tough spot financially. According to a recent survey, about one in four Americans has more credit card debt than savings.

More than a thousand adults around the country were asked which was greater: their current credit card debt or the amount of money they had in savings.

Twenty-four percent of respondents said they had more debt, 55 percent said they had more savings, 16 percent had no credit card debt or savings and the remaining 5 percent didn’t know or refused to answer.

The study also found men were more likely to have more savings than women, families with young children had more debt than families without young children and those making more than $75,000 a year had more savings than those making less than $30,000.

“Twenty-four percent of respondents

had more debt than savings.”

Greg McBride, a financial analyst from Bankrate.com, believes the bad economy has contributed to these problems. Since many workers are struggling to find jobs and wages are stagnant, they are having trouble paying off debt.

The good news is these results are about the same as surveys from 2011 and 2012. American debt problems aren’t getting worse.

However, they aren’t getting better either. Only 14 percent of respondents felt their savings was in better shape than a year ago, whereas nearly 40 percent feel they are in worse shape than a year ago.

McBride isn’t sure whether the situation will improve once the economy gets stronger. He worries as workers get more money, they might just spend more rather than paying down their debt.

Source: LifeInc.Today.com. Photo source: Investopedia

About David Andrew
David Andrew is a former New York Life financial adviser, holding Series 6 and Certified Financial Planner credentials from his years with the company. He also holds degrees in economics and finance from McGill University. David is now a well-published finance writer with special expertise in credit cards and auto insurance. In addition to his work on BadCredit.org, his articles have been featured on eHow, Zacks.com, TheNest.com, Chron.com and other popular sites. When he's not keeping up with the latest news in the world of finance, David enjoys playing tennis and golf.
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