The Index revealed that Hispanics are especially optimistic about their financial future. Nearly 70 percent see their financial situation improving in the next six months. This optimism is likely linked to changes they plan to make to better manage their finances. For example, nearly two-thirds (72 percent) will cut back on unnecessary spending in the next six months and only 12 percent plan to borrow money from family and friends, down from 16 percent six months ago. Additionally, more than half (52 percent) have created or are planning to create a budget in the next six months, compared to 42 percent of consumers overall.
"While people are still optimistic about the future, they continue to feel the effects of the economy," said David Shapiro, senior vice president, Western Union Global Payment Services. "The challenging economic times are weighing on consumers so there is a need and desire for financial education, as well as a new approach to managing their finances."
According to the Index, 58 percent of consumers say they are worse off than they were six months ago and one in five (20 percent) feels conflicted over the ability to manage their finances. In addition, fewer consumers (34 percent) than six months ago (39 percent) report being able to cover a sudden expense over $1,000.
PLANNING AHEAD
To tackle their stress and achieve long-term goals, consumers are dramatically changing their bill payment behavior: one-third (33 percent) are prioritizing which bills get paid first. They are also looking for ways to improve their skill set. For example, one in four (25 percent) want new ways to track their spending and nearly one in four (21 percent) seek new bill payment options.
Western Union Payment Services sees this current "money mindset" as an opportunity to empower consumers with financial education and bill payment options.
"Consumers can take action by contacting their billers to talk about alternative payment plans, which could help them better manage their finances," Shapiro says. "There are benefits for billers too – by working with their customers they can deepen their relationships and increase the likelihood of receiving payments."
To help financially empower consumers, Western Union offers the following tips:
- Pay, don’t delay – but pay it your way: If you have trouble paying a bill, call your biller immediately to discuss payment options and flexible due dates that correspond with “pay day.” There are also services available that allow people to send same-day payments.
- Protect your credit rating: Late payments can negatively affect your credit. Consider paying your bills by using walk-in cash payment services, which allow you to receive proof of payment in minutes.
- Learn the latest, greatest financial advice: Learn about the latest personal finance tips by frequently visiting credible Web sites such as bankrate.com, cnnmoney.com and moneycentral.msn.com.
- Prioritize your expenses: Determine which expenses are necessary and which expenses can be reduced or eliminated; try to keep that portion of money saved as an emergency fund to help cover unplanned expenses.
