Their November online poll, conducted each month via their website homepage, asked folks to predict what their financial situation would be this time next year, and almost half (49%) said they thought they’d be in a better place financially. Twenty-three percent answered that they’d be in about the same situation, 17% predicted things would get worse for them money-wise, and 11% declined to make a prediction, saying the economy was too unstable to say what the next year would bring.
While financial optimism is a good sign, NFCC spokesperson Gail Cunningham warned that people may not be prepared for the spending urges that may overtake them now that they economy is on the upswing.
“Consumers exhibiting financial confidence is certainly a positive sign for the American economy,” said Cunningham. However, “having been cost-conscious since the beginning of the recession, consumers may now be experiencing the seven-year itch with a desire to begin spending again.” She continued on to say that “attempting to satisfy that itch could invite a personal financial disaster.”
Financial trouble spares no household
She said the average person who sought credit counseling from the NFCC in 2014 was a woman (59%), age 25-34 (25%), with almost $17,000 of unsecured debt distributed across more than five credit cards. The average household income of a person seeking help with their debt load was over $55,500 per year.
People were equally likely to be white (47%) or black (also 47%), single (38%) or married (36%). The NFCC said that spending troubles plague all types of households across the board because “debt issues can confront anyone at any time.” Most of the people who reached out for help said they were there because they didn’t have a good understanding of financial management and lacked solid financial skills.
The NFCC and their member agencies give people advice and offer solutions to out-of-control debt issues. One-third of the people who went to an NFCC agency last year were looking to enroll in a debt-management program, and almost 40% did enroll in such a program after getting counseling from a certified consumer credit counselor.
Cunningham stressed that financial confidence is a good thing, but can easily lead to overspending. “Financially confident is where you want to remain. Don’t let it slip away through irresponsibly spending,” she said.
Read Also Related News
Bankrate has recently conducted a survey of U.S. consumers’ payment habits amid the coronavirus. According to it, the number of Americans paying for grocery purchases with credit cards increased significantly in April and reached 46%....
The coronavirus pandemic has caused significant damage to the economy of the country and the whole world. No wonder that spending habits of Americans have also undergone some changes. For example, since the borders of many countries has...
Recently U.S. News & World Report - a multi-platform publisher of news and information, conducted an online credit card debt survey with more than 1,000 adult respondents. It turned out that a huge number of American cardholders were...
I need a credit card with a 0% APR to consolidate several of my credit cards into one payment. Please advise what card I can apply.
There are special credit cards that allow consolidation of other cards’ debts - the balance transfer credit cards. These cards usually come with a 0% intro APR on balance transfer offer. The zero introductory period varies, but as a rule it is between six months and two years. So you can find a credit card with...
The easiest way to find out if you have credit accounts under your name is to request a copy of all your three credit reports: Experian, Equifax, and TransUnion. The reports contain information about active credit accounts, its issuers, and the information about credit accounts balances. If you want to protect yourself...
To set a PIN on your credit card, you should call the credit card issuer at the number on the back of your credit card and request your PIN. After that, the issuer will mail to you your PIN. In the meantime, if you need cash, you can go to a bank office and present your credit card and picture ID.
The overall process of getting a credit card can take up to 30 business days. To know the status of your credit card applications you should contact the credit card issuer. A quick online search for the bank or credit card issuer's name should turn up a customer service phone number or email address. Banks and credit card...