The National Debt Clock And Americans Poor Saving Habits

Just to underscore how big the problem of debt is in our country. Just take a look at the gross national debt and how fast it is growing.

It seems that the majority of U.S. citizens have followed suit. Here is some statistics. Even though this information is a few years old it will give you a good idea of what we as nation and as individuals are up against.

The state of the Union:

• According to the Wall Street Journal nearly 70% of consumers live paycheck to paycheck
• A Marist Institute poll published in the USA Today stated that 55% of Americans always or sometimes worry about their money
• In the new millennium, the personal savings rate in America fell to -2% the lowest in 60 years, according to the Department of Commerce
• According to Automatic Data Processing, Inc., 20% of workers would not be able to make a mortgage, utility, or credit card payment if they missed a paycheck
• Money magazine states that 75% of families will have a major negative financial event ($10,000) in any ten-year period

How we as a nation save:

• More than 40% save less than 5% of their annual household income
• 16% save between 5% – 10%
• Only 9% save greater than 20% of their annual income

• Among all workers, 45% have less than $25K in savings and investments (aside from equity in primary residences). 64% have less than $25k in savings (age group 25-34)
• According to CNN, the average credit card debt per household reached a record $9,312 in 2004. That’s an increase of 116% over past 10 years
• Approximately 35 million Americans pay only the required minimum (about 2%) of their balance each month

We here at Debt-Wrench.com think that even though the numbers look grim, we can overcome them one person at a time, one bit of financial education at a time, and one dollar at a time. So don’t be scared by the numbers. Don’t be intimidated by how bad your financial situation is. Let the numbers and statistics motivate you to take action now and learn more.  As you learn more you can act fast and act correctly to eliminate your debt.