PHILADELPHIA (KYW Newsradio) — Americans want to position themselves better financially and build savings, but experts say it’s difficult for people to achieve those goals.
A recent Bankrate survey found 30% of Americans have more credit card debt than money saved. Forty-four percent have more emergency savings than credit card debt.
“Nineteen percent have neither credit card debt nor savings. They’re just flying by the seat of their pants,” said Bankrate Financial Analyst Stephen Kates.
According to Kates, more than a quarter of Gen-Z had no credit card debt or emergency savings, leaving them vulnerable to unexpected expenses.
“As they continue to sort of age into the workforce, then we’re gonna see that rise where more and more people as a percentage of who were profiling here are going to start to show that they have no savings and in some cases no credit card debt,” he said.
Fifty-eight percent of Americans say their emergency savings haven’t grown at all in the past year.
If you are not in a position to save money while paying down debt, Kates recommends building a month’s worth of savings first, then moving to pay off high-interest debt.