August 10, 2009
Since last fall's economic meltdown, consumers have made a
significant shift from spending to saving. The savings rate, after
falling to historic lows, has begun to rise again.
Some consumers appear to be reacting to policy changes by their credit card companies. Some companies have raised rates significantly. Others have unilaterally closed accounts. Roche, of Fort Collins, Colorado, said Chase raised her rate, inspiring her to pay off her balance completely. She thinks others should do the same.
"So put on your Rocky tape and raise your fist in triumph as you write a check to pay off your account and write a letter to close your account," she told ConsumerAffairs.com.
A new survey suggests this get-out-debt trend could have legs. Consumers, it seems, are eager to reduce debt, seeing that as the best way to achieve prosperity. The survey by the National Foundation for Credit Counseling shows a majority of consumers believe that reducing personal debt levels is the most important factor in feeling more financially secure.
The group has been asking consumers to weigh in on a number of different financial topics each month via its Financial Literacy Opinion Index on its web site. Thousands of consumers have responded so far, the NFCC says, and the findings show how current economic conditions have affected the way Americans think about and treat their finances.
In July, the group asked consumers to choose from four options to indicate which would make them feel more financially secure.
Out of the 7,001 respondents that answered, 5,110, or 73 percent, said less debt. That was followed by: more control over finances, at 13 percent; more money in savings, at 11 percent; and job security, at four percent.
The question on financial security yielded the largest number of respondents to date, the foundation said.
In May, the group found that nearly half of survey respondents had begun taking their lunch to work in order to save money; in June, a large majority of respondents said they had shelved vacation plans.
