Putting money aside for retirement is the goal of many Florida residents and others throughout the country. Unfortunately, some consumers are unable to save any money each month because of other financial obligations. A recent survey conducted by a life insurance company showed that half of a demographic group could not save for retirement because of their credit card debt.
Members of Generation X, those born in the early-to-mid 1960s to late 1970s, are struggling with debt, according to the survey. Data shows that their non-mortgage debt has risen by 15 percent over the past three years, from $20,000 to $23,000. Also, the number of responders that only pay part of their credit card balances each month rose 46 percent in that same time period.
The survey also reported that many Gen Xers were hesitant to share the status of their financial situation with others. They also believe that though many are not saving for retirement, the situation will work out by the time the leave the workforce. Advisers recommend taking action to both alleviate the burden of credit card debt and save for the future.
There are many approaches to reducing or eliminating credit card debt. Consumers should pick a strategy and stick to it. When extra cash becomes available within a budget, it is also imperative to have a designated savings fund for emergencies. As soon as possible, monies should then be set aside to fund a retirement account. This often provides some needed tax advantages as well as financial security for the future.
Credit card debt may feel overwhelming to any generation. While some may worry about future retirement funds, other may be concerned on how to make ends meet on a day-to-day basis. A Florida bankruptcy attorney can help consumers understand their situations and all the options available to them. A knowledgeable lawyer can work with clients to develop a plan to get their finances back on the right track.
Source: planadviser.com, “Credit Card Debt Preventing Many Gen Xers From Saving for Retirement“, Lee Barney, Nov. 29, 2017