Brought to you by WBIW News and Network Indiana
Last updated on Wednesday, February 19, 2014
(UNDATED) - A new Bankrate survey out shows only 51% of Americans have more emergency savings than credit card debt.
That's the lowest since 2011 when Bankrate started keeping track.
The survey also shows that 28% have more credit card debt than emergency savings and 17% have neither.
Ball State University economist Dr. Mike Hicks says that's still better than 2005-2006 when households were borrowing more than their total yearly income. He says back then, people had no savings and were heavily in debt.
Hicks argues that many households keep money in retirement and college funds which yield better tax benefits than mere savings accounts. Still, Hicks says many households aren't ready for retirement or to pay for college.
Hicks says good credit can balance out lack of emergency savings which doesn't yield any true return. Ultimately, Hicks says the savings issue links back to unemployment and lack of jobs.
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