New study says 64% of Americans have less than $1,000 in the bank

thernbroom

thernbroom

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TYLER - Cash, it seems to be harder to come by now-a-days. With a high unemployment rate, experts say it's becoming ever harder to find.

A new study says those who do have it, might not have that much in the bank. The study says sixty-four percent of Americans do not have one thousand dollars in savings and it boils down to a rotten economy.

One East Texan tells KETK "I used to have more than a thousand dollars in the bank but now that the economy is getting worse so I have less than a thousand dollars."

To find out what the problem was KETK spoke to an East Texas financial advisor.

"The reason why were notoriously bad savers is because people don't understand or have control of what their expenses really are. They take their income, they spend everything they have on day to day living and then they try to save what's left and the reality is there's usually no money left so it's hard to save."

The study points out that just because Americans may not have the "theoretical cash" in savings doesn't mean they'd simply give up.

Nine percent say they would take out a loan, seventeen percent borrow from a friend or family member, nine percent would get a cash advance on a credit card and even twelve percent would sell or pawn their assets.

Hopefully, experts say, it wont ever come to that, but they say it's always important to be prepared.

"Well I think what they have to do is try to make a plan for themselves so they don't find themselves in that situation."
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New study says 64% of Americans have less than $1,000 in the bank | KETK

TYLER — We've heard plenty about the national debt, and it has left millions across the country struggling with their own financial problems.

A new report shows more than half of American families have more than $75,000 in personal debt.

The Federal Reserve says all that debt adds up ... totaling $11.5 trillion nationwide.

Financial experts here locally say they aren't too surprised.

"I think most families are struggling to find the right ratio of debt to income to be able to purchase the lifestyle they would like to have," said financial advisor Jay Oliver.

With signs of national economic growth, bankruptcy lawyer Amy Ames says on a personal level, it's probably going to take a little more time.

"I don't think its improving on the consumer or small business level yet," Ames said.

In Smith County, she works with clients who are struggling with anywhere from $20,000 in debt ... up to several hundred thousand.

"A lot of credit card debt, medical bills, sometimes they're dealing with IRS, litigation," Ames said.

She's seen a steady increase in foreclosures and bankruptcies here locally, too.

"Sometimes the debt is just unmanageable, and bankruptcy is an option that can give them a fresh start," Ames said.

Many are trying to dig themselves out by downsizing and limiting the amount they borrow.

"Limit your obligations to provide for your mortgage or housing to 20 or 25 percent of your household income," Oliver said. "Auto loans, credit cards, limit that to 10 to maximum of 15 percent."

The good news is ... no matter how big or small your debt is, there's always an option.

"It may not be the most comfortable option, but that's why we have counselors, bankruptcy, to help people get out of situation," Ames said.

Oliver also suggested only borrowing things at appreciate in value like real estate or a home, and avoid debt on things that depreciate in value.
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Report: Most Americans have $75,000+ in debt | KETK
 
L

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Sounds about right. Popular hotel chains don't even soft charge a reservation anymore.

We are all starving out here
 
KingpinOG

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People don't have money because they don't save. They would rather waste their money on the latest I phone, eating out every night of the week, expensive clothes, vacations, etc.
 
Kilgore Trout

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KingpinOG said:
Walk into the poorest neighborhoods in America and you see people wearing Jordans and talking on I Phones.........
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This is a first world country. Do you expect them to look like this?

african-kids.jpg
 
KingpinOG

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spinoza said:
This is a first world country. Do you expect them to look like this?

african-kids.jpg
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No. But if they don't have a $1,000 in their savings account, I would expect them to not waste their money on friviolous things like fancy phones and shoes when they should be trying to save for their future.

Most people that I know that are poor are poor because of their own choices.
 
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