A vast majority of Americans are concerned about their personal finances when looking toward the holiday season. Seventy-seven percent say they are very or somewhat concerned about their personal finances as they look to the holidays, with the majority saying they will rely less (31 percent) or about the same (51 percent) on credit this holiday season than last year.
Americans Cut Spending
- Sixty-seven percent say they have cut spending to cope with the uncertain economy, up from 65 percent who took this action earlier in the year.
- Sixty-two percent say cutting spending has either significantly (18 percent) or moderately (43 percent) helped cope with the economy.
Reliance on Credit Dwindles
- Fewer Americans (21 percent) are relying on credit to get by than did in July (26 percent).
"Whether it is consumers making smart choices or credit card companies tightening their lending standards, less reliance on credit is a positive thing for Americans," adds Brannan. "If you want to cut spending and credit card use, it's important to have a tangible plan you can follow. If you don't have time or are uncomfortable making these decisions on your own, get help from a knowledgeable financial professional."
Tips to keep in mind for preserving long term savings:
- Withdrawing money from your 401(k) account can cost you more than you might think. In addition to the income tax you could owe, you will have to pay a penalty. Plus, many employers will withhold a percentage of your withdrawal amount for income tax purposes.
- If you find yourself tapping into your savings regularly, consider contributing less to your savings accounts temporarily, but don't stop contributing altogether.
