Now that the economy is slightly better, you might have the urge to spend. A recent survey by the National Foundation for Credit Counseling finds that roughly 49% of respondents are feeling more confident about their financial situation. Consequently, the urge to splurge is surfacing for some.
However, NFCC spokesperson Gail Cunningham warns that giving in to the temptation to spend in the absence of restraint could lead to significant financial distress. Developing sound financial management skills is the key to avoiding problems down the road.
The NFCC notes that many of the people who sought counseling during the first half of this year linked the cause of their problems to inadequate financial management skills and lack of understanding. Approximately 25% of these consumers were 25 to 34 years old. Those ages 35 to 44 were in the next highest group.
The NFCC took a poll to measure the profile of the average visitor to an NFCC member agency for financial counseling.
- Singles (37.7%) and females (59%) are most likely to seek financial counseling.
- Caucasians were more likely to seek financial counseling (47%), followed by African Americans (47%) and Hispanics (8%).
- The average household income of someone seeking financial counseling at an NFCC member agency was $55,000 with unsecured debt close to $17,000 spread across more than five credit cards.
For more on this topic, read NFCC Warns Against Holiday Overspending.