More Americans are cutting back on their spending and having too much debt is one of the primary reasons for the decrease, according to the results of a survey conducted by Bankrate.com.
Two-thirds of those who were surveyed said they are limiting their spending, according to the survey, and years of financial education about the importance of saving for a rainy day may finally be sinking in. The most popular answer to why those who were surveyed are spending less is because those people want to save more (36%), followed by not making more money (24%), and having too much debt (17%).
Millennials represented the age bracket that are most dedicated to savings, according to the survey. Nearly three-quarters of millennials are curbing their spending every month, compared with 69% of members of Generation X, 63% of Baby Boomers, and 54% of the Silent Generation.
“Americans know they are undersaved – whether for emergencies, retirement or both – but only 24% of households are consciously limiting their spending in order to save more,” says Greg McBride, CFA, Bankrate’s chief financial analyst.
The number of respondents who indicated they are spending less because they have too much debt increased to 17% this year, from 13% last year. Millennials again were the most financially responsible generation, with 23% of them saying debt was the reason they were spending less, compared with 13% of Baby Boomers, Generation X, and the Silent Generation.
Rising interest rates is making carrying debt more expensive, and Americans should consider contributing “every dime” they have to paying down their debt, McBride said.