A Quarter of Atlanta Consumers Don’t Have Any Savings And Rely On Credit
A recent poll by Bankrate.com suggests that nearly one in four American consumers don't have an emergency fund backup.
This is bad news, but not necessarily shocking considering the toll the Great Recession has taken on Americans and those throughout Atlanta in particular. The local real estate market has taken a huge hit with nearly 1 in every 300 houses are in foreclosure. That has led to many people losing money and dipping into their savings accounts.
As credit card debt mounts, this can lead to people considering bankruptcy in Atlanta. Consulting with an experienced Atlanta Bankruptcy Attorney may be prudent for those who are struggling with debt.
According to the article, most people surveyed aren't prepared to deal with contingencies, while about another 24 percent have the recommended six months of savings. About 6.2 million people stay out of work for six months or longer, which shows how many people aren't prepared in a climate in which a shaky economy and constant job loss pose major financial struggles for people.
"The majority of Americans still have much work to do in building an adequate emergency savings cushion," said Greg McBride, a senior financial analyst for Bankrate.
McBride attributed the numbers to the challenges of the economy and struggling job market as many people aren't able to store away money right now. Most respondents under 30 who make less than $30,000 a year were the most likely to have no emergency funds, while those between 50 and 60 and those in higher-income households were most likely.
If possible, McBride says, people should try to put a little money away from each paycheck and work to spend less.
Other findings of the survey:
- Bankrate's Financial Security Index showed that feelings of financial security was down from May to June.
- Nearly 1 in 5 respondents said they feel better about their their debt compared to last year and 19 percent feel less comfortable.
And as credit card and loan debt gets higher and higher and consumers get hit with fees and high interest rates, it makes it all that more difficult to get back on track. And while some people may think that filing for bankruptcy in Atlanta would hit a person's credit score, those with piles of debt and late payments probably already have a low score.
But filing for bankruptcy can eliminate debt and set them free from creditors and put them back on track to recovery. Setting up a free consultation with an Atlanta Bankruptcy Attorney should be the first step to a new life.
If you need to speak to an Atlanta bankruptcy attorney call the DebtStoppers Bankruptcy Law Firm at 800-440-7235 today for a free debt analysis.
More Blog Entries:
Study Finds Most Atlanta Credit Card Users Don't Know The Perks, but They Probably Know the Pitfalls: August 5, 2011
Life After Bankruptcy in Atlanta Easier With Five Tips for Moving On: June 25, 2011
Additional Resources:
24 Percent of American Consumers Have No Emergency Savings: Poll, by Dave Carpenter, The Associated Press