What's Threatening Your Financial Security?
Cost of Living - Annual inflation increases the funds required over time to pay for the necessities of life. Every plan for your financial future should compensate for the effects of inflation
The Burden of Debt - In 2006, National Consumer debt reached an all time high of over 8 trillion dollars 1
Lack of Security - Americans save lss of their income than any other nation in the world. Most families spend virtually 100% of earned imcome after taxed annually. 2
Spending more than you make- For many families, credit card balances are a primary indicator that they are spending more than they are bringin in. Onwise or unneccesary spending is one of the greatest threats to financial security.
Retirement Costs - Some people may mistakenly think they will be able to work forever. Unfortunately when their day of retirement comes - whether voluntary or forced upon them - their financial security can be severely compromised.
Statistics of Interest - It is as important today as ever for families to apply fiscal discipline and planning. The following facts suggest that Americans in general need to do a better job preparing for their financial security:
Savings |
Consumer Spending |
| In 2008, Americans personal saving rate was just 1.3% of disposable personal income—the lowest rate since the heart of the Great Depression.3 | The amount that Americans spend on homes, credit cards and other purchases now equals virtually 100% of annual income after taxes—up 75% from the end of the recession in 1992.5 (There has been a 3.7% annual rate of decline in real consumer spending— Business Week Magazine, 12/11/08.) |
Bankruptcy |
Credit Card Debt |
| More than 1,074,255 non-business bankruptcy
petitions were filed in 2008—compared with only 822,590 in 2007.4 |
The average credit card balance is nearly $10,700, and the average interest rate is 13.89%.6 |
1 National consumer debt figures obtained from http://www.debtresolution.com
2 Article “ Consumer Credit: A crunch may be coming” published in Business Week Magazine, August 12, 2002.
3 U.S. Department of Commerce: Bureau of Economic Analysis, October 31, 2008 as quoted
by AC: Associate Content; http://www.associatedcontent.com.
4 Bankruptcy Filing Statistics- Non-Business Filings; ABI Website, http://www.abiworld.org..
5 Business Week Magazine article “Consumer Credit: A crunch may be coming” published in August 12, 2002.
6 CNN Money. Com, Money 101-Lesson 9: Controlling Debt, citing CreditWeb.com, 04/02/09,
http:www.CNNMoney.com; CreditCards.com, http://www.indexcreditcards.com 04/02/09.