The good news: 54% of Americans have more savings than debt.
The bad news: About 4 out of 10 Americans are one emergency away from getting into financial troubles.
Nearly a quarter of Americans say they owe more on credit cards than they have saved for emergencies, and 16 percent admit that while they don’t have any debt, they also don’t have any savings. With finances like this, many Americans are living on the edge.
To get yourself financially safe, start building your emergency fund. At minimum, an emergency fund should hold six months’ worth of expenses.
While saving for your emergency fund, continue making minimum payments on your credit cards. Once your emergency fund is built up, focus your efforts on paying off your debt, one card at a time.
In a society that encourages overspending, keeping debt off can be a struggle. To keep your head above water, tune out the spending messages, and get debt and savings under control for good.