More than 20% of respondents to a survey conducted by Bankrate.com said the amount of credit card debt they are carrying exceeds the amount of emergency savings they have, and another 12% say they have neither emergency savings nor credit card debt.
The 33% who are not equipped to handle an emergency is actually a good sign however, because that figure continues to trend downward. The 33% is down from 41% in 2017 and 43% in 2016 and is the lowest total in the eight years the survey has been conducted.
The 58% of respondents who indicated they have more savings than credit card debt is also a high-water mark for the survey. For the past two years, that figure has remained at 52%.
A low unemployment rate, growth in household income, and a renewed interest in savings has sparked the upward tick, according to Bankrate.com.
“As unemployment declines and household income rises, more households are making progress on boosting savings, paying down debt or both,” says Greg McBride, CFA, Bankrate’s chief financial analyst.
The survey found that millennials were the most likely to prioritize building emergency savings funds while members of Generation X and the Baby Boomers were the most likely to prioritize paying down their debts.
