Credit card debt outweighs savings for many Americans

We all know the importance of saving money. Having a savings account can help ensure that you are protected and prepared if something unexpected should happen later in life. Divorce, medical bills and other unexpected payments can cause a person to dip into their savings account. However, saving money, as some New Yorkers know, is not always as easy as it sounds.

Today, many people are stretched thin financially. Wages haven’t gone up much in the last few years, and some people are still out of work or underemployed. In situations like this, saving money is difficult if not impossible — and sometimes credit cards help bolster a person’s spending ability.

In fact, a recent study by Bankrate.com shows that credit card debt outweighs savings for almost a third of Americans. Just over half of people have enough money saved to pay off their credit card debt completely.

The U.S. Department of Commerce reported that consumers are not only using credit cards more, but they are saving less. Coupled with recent holiday spending, many people in New York and elsewhere have found themselves in a tough spot. A Bankrate.com study also shows that consumers are less comfortable with where their savings are now.

When it is difficult to pay your bills let alone save money, many people turn to credit cards to help make ends meet. Sometimes, however, credit card debt can get out of control, leaving a consumer feeling overwhelmed and worried. In situations like this, it may be beneficial to work with an attorney about debt management and debt relief. Bankruptcy and other tools can provide a person with the debt relief he or she needs to start over with a clean slate.

Source: CBS Money Watch, “Close to half of Americans have more credit card debt than savings,” Constantine Von Hoffman, Feb. 18, 2014