Did you know that this week is America Saves Week?
From February 21-28, Americans are encouraged to “Build Wealth Not Debt.” Thankfully, BillShrink users are right on track. We delved into our data and found that more people are paying off their credit cards this year than they did last year! Back in February 2009, 46% of all users noted that they paid off their credit card balance in full each month. Now a year later, nearly 59% of users report paying off their balance each month. Our own data is confirmed by the Federal Reserve as a nationwide trend: the Fed reports personal credit card debt is on the decline and Americans have dumped $101.2 billion in debt in the last 14 months.
Once credit card debt is banished for good, it’s time to think about that rainy day fund. Our current economic woes have made it increasingly clear that a tidy stash of cash is necessary to protect against all the tough times life throws our way: illness, unemployment, accident, or other emergencies. Can’t find any money to put into savings? BillShrink makes it easy. Our technology has crunched the numbers for over a million Americans and found each person an average of $1500 in savings. Use our tool to shop around, find a savings account or CD, and watch your money grow.
If you need some inspiration for building wealth and not debt, take a look at our previously published infographic that shows how Americans’ savings and debt patterns have changed over the last fifty years. While we recently hit a relative high point in our average personal savings rate (6% in May 2009), that’s still paltry compared to the incredible 14.6% personal savings rate in May 1975.
(click graphics below to enlarge)
Are you going to take the America Saves Week to heart and start building wealth, not debt? Is it possible for us to achieve the double-digit personal savings of an earlier generation? Or will we lapse back into our old spendthrift ways?