Financial Round-Up: 1 in 4 Americans Have No Money Left Over Every Month
Millions of Americans are still struggling financially even as the country’s economy slowly tries to recoup from the recent recession and a new poll has found that saving is taking the back burner when it comes to making financial priorities.
Two factors that may be affecting consumers saving habits across the country is unemployment, which is currently idling around 9 percent and the increasing costs of living. As a consequence, many consumers are struggling to pay their essential bills every month let alone think about emergency and retirement saving funds.
Coupon Codes 4 U recently conducted a survey of 2,589 employed Americans that revealed nearly one in four consumers – 24 percent in all – now have every penny of their income “spoken for” before they even spend it. This means almost a quarter of consumers simply have no money left over to save for future expenses or unexpected incidents like a car accident, car problem or job loss. Worse yet, another 34 percent said they don’t even make enough money every month to cover all their various bills. An additional 29 percent said they have just 10 percent left over for other expenses when all their bills are paid, and just 11 percent said they had one-third or more of their take-home pay remaining once all their outgoings were addressed.
Respondents were asked to rate their own financial situation, and the vast majority said they were not in “good shape.” Overall, 12 percent said their standing was “very bad,” and another 33 percent thought theirs was merely “bad.” Meanwhile, 26 percent thought their situation was average and 23 percent of consumers believed their financial situation was “good,” leaving only 6 percent of respondents saying that their financial situation is “very good.”
Surprisingly of those who found it to be either bad or very bad, 71 percent hadn’t sought any type of financial advice or help to get their situation under control.
With prices rising and unsecured debts accruing skyrocketing interest rates and late fees, people are forgetting about saving which could down the road impact their personal finances even more.
Consumers who are dealing with costly bills that eat up most of their monthly income should consider seeking the assistance of a reputable and licensed credit counseling agency. By doing so, they will be put in touch with a trained, experienced professional who will help them to go over all aspects of their finances and help them find a solution to get their finances under control. There are a number of options available for to consumers including credit counseling and debt management plans, debt consolidation or for severe cases, bankruptcy.