Many Tennesseans are saddled with more credit card debt than they would like and less savings for a rainy day. However, it may surprise them to learn that they are not alone. Bankrate reports that only half of all Americans have more money put away as emergency savings than what they owe in credit card debt.
More specifically, 52 percent of people have more savings than credit card debt. That number is down 58 percent from 2015 and no progress has been made in improving those numbers in the past five years. The report also stated that the number of people with no credit card debt but also no savings has grown from 13 percent to 21 percent. Therefore, those people are particularly at risk for being driven into debt if any unexpected expenses come their way.
The news is not all bad though. According to Mainstreet.com, 26.3 percent of people have said that building an emergency savings fund is one of their top financial goals for 2016. And while millennials often get a bad rap, they are actually more likely than any other age group to have more savings compared to credit card debt.
Experts generally advise that most people should have enough savings to cover six months of expenses. That way a minor setback, such as a car repair or the sudden loss of a job, will not devastate a household financially. While it may seem like a daunting task to put that kind of money aside, having even a small nest egg can do wonders for a person’s financial outlook and peace of mind.