Majority of consumers say debt is the biggest obstacle in achieving their financial goal.
Boston, MA – November 22, 2017
According to a new survey by national nonprofit American Consumer Credit Counseling, 94 percent of respondents are actively working towards achieving a financial goal. Although the majority of respondents are working towards a goal, 47 percent do not actively save money from each paycheck.
“Whether it is paying down debt or saving for retirement, it is important to have financial goals,” said Steve Trumble, president, and CEO of American Consumer Credit Counseling, which is based in Newton, MA. “When setting financial goals, they should be specific, measurable, achievable, realistic and timely. They should also be categorized into short, mid and long-term goals.”
In the long term, the majority of respondents (71 percent) are working towards getting out of debt, followed by creating a nest egg (17 percent) and affording their lifestyle (11 percent). Similarly, a Nerd Wallet study found that 58 percent of American’s most pressing financial goal is paying down debt.
Just over half (52 percent) of respondents say they put aside money from each paycheck into their savings for the future. The majority (37 percent) sets aside 5 to 10 percent of each paycheck, followed by 10 to 20 percent (11 percent), 20 to 30 percent (3 percent) and 50 percent or more (1 percent). CNBC recommends consumers should save 25 percent of their gross pay while in their 20’s.
Credit card debt is seen as the most significant obstacle in trying to achieve a financial goal in every generation. Fifty-six percent of baby boomers and 46 percent of Millennials reported this as their biggest obstacle when it comes to saving for the long term. Millennials also said low salaries as one of their biggest saving obstacles (28 percent).
American Consumer Credit Counseling conducted this online survey of 294 consumers on the organization’s website, www.consumercredit.com. You can view an infographic illustrating the survey results here: https://www.consumercredit.com/debt-resources-tools/infographics/money-management-infographic/what-are-your-financial-priorities/
ACCC is a 501(c)3 organization that provides free credit counseling, bankruptcy counseling, and housing counseling to consumers nationwide in need of financial literacy education and money management. For more information, contact ACCC:
- For credit counseling and student loan counseling, call 800-769-3571
- For bankruptcy counseling, call 866-826-6924
- For housing counseling, call 866-826-7180
- Or visit us online at https://www.consumercredit.com
About American Consumer Credit Counseling
American Consumer Credit Counseling (ACCC) is a nonprofit credit counseling 501(c)(3) organization dedicated to empowering consumers to achieve financial management through credit counseling, debt counseling, bankruptcy counseling, housing counseling, student loan counseling and financial education. Each month, ACCC invites consumers to participate in a poll focused on personal finance issues. The results are conveyed in the form of infographics that act as tools to educate the community on everyday consumer debt issues and problems. By learning more about financial management topics such as credit and debt management, consumers are empowered to make the best possible financial decisions to reach debt relief. As one of the nation’s leading providers of personal finance education and credit counseling services, ACCC’s certified credit advisors work with consumers to help determine the best possible debt solutions for them. ACCC holds an A+ rating with the Better Business Bureau and is a member of the National Foundation for Credit Counseling® (NFCC®). To participate in this month’s poll, visit ConsumerCredit.com and for more financial management resources visit https://www.consumercredit.com/debt-help/.