In Spite of Economic Upswing, Credit Card Customers... - Card Issuers News

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Card Issuers » In Spite of Economic Upswing, Credit Card Customers Worry Over Savings

In Spite of Economic Upswing, Credit Card Customers Worry Over Savings

Add to Favorites:
In Spite of Economic Upswing, Credit Card Customers Worry Over Savings
September
20

Most consumers feel that their personal finances are getting better, says a new survey from Chase Card Services, released this week. Compared to last year, when 56 percent of those surveyed said that their financial situation was improving, this year 65 percent of consumers said that all signs point up for their financial future.

However, savings is a big concern of many Americans, with 74 percent of respondents naming having enough money in savings as their top concern, and 64 percent saying that saving for retirement is their second-biggest worry.

The annual Chase Pulse of the Consumer Survey polled over a thousand Americans over the age of 18 during the first week of August, asking them various questions about the economy in general, as well as their own financial pictures. Last year the survey was conducted over the phone, but this year it was done online by independent research company Research Now.

Savings a Big Source of Worry

Although nearly three quarters of survey respondents said that they were worried about having enough money in savings, only 36 percent of them have been socking away more savings since the recession began in 2008. Concerns about short-term budgets are taking a backseat to fears about retirement and savings, though over half of consumers try to save as much as they can on day-to-day purchases. Only 40 percent of those surveyed said they were worried about meeting their monthly credit card, rent, or mortgage payments.

Eileen Serra, CEO of Chase Card Services, said in an announcement of the survey results that “Consumers continue to need the correct financial tools and services to better manage their everyday expenses – that is a critical first step to gaining full control over their financial future.” She added that, “We’re encouraged that consumers think the economy and their personal finances are on the upswing, but there is still work to be done.”

Credit Card Savings Strategy

One way that consumers could save money is to use a cash back credit card, like the Discover More or the Citi Dividend Platinum Select, and choosing to put the cash back earned into savings each redemption period. Both cards give one percent cash back on all purchases, with five percent back in certain categories, like department stores, gas stations, and grocery stores, that rotate every three months.

Even just counting the one percent cash back bonus, if cardholders put monthly expenses of $2,000 on their cash back credit cards each month, that’s $20 every month – or $240 a year – that can go into savings. Add the maximum five percent back bonus each quarter (usually $75) and the annual savings possible jumps up to $540.

One thing that consumers should keep in mind when using this strategy is that if they carry a balance, any savings is likely to be canceled out by interest, unless they are enjoying a zero-percent on purchases introductory APR period. Even so, it’s important to be aware of the ongoing APR on any credit card and make sure that the savings rewards are worth any interest charges that could be accrued down the line.

All credit cards terms, fees and rates mentioned in this article/post are actual on the posting date. See the current products’ Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

Planning back to school shopping on a budget
Best Budgeting Tips for Back-to-School Shopping

Posted: July 30, 2012

Back-to-school season is in full swing, with kids and parents everywhere making lists and tallying up needs, wants, and price tags. Chase Bank reports that nearly 40 percent of people have a set budget for back-to-school shopping;... Continue reading
Getting Personal with Business Travel

Posted: October 20, 2017

Traveling for business can be a real pleasure for 91% of people, according to the inaugural American Express Business Travel Survey, with 57% saying that it actually makes their job more interesting. Getting in some face time with ... Continue reading
The Savor Card from Capital One

Posted: October 19, 2017

The Savor Card is the newest addition to the Capital One credit card portfolio offering enhanced cashback on all things related to food. With this card, people get 3% cash back when dining out and 2% back when buying groceries. All other ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
We'll match all the Miles you've earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
You could turn $150 into $300 with Cashback Match™. Get a dollar-for-dollar match of all the cash back you've earned at the end of your first year, automatically.
For Excellent, Good Credit
No Annual Fee. See WebBank/Fingerhut Credit Account Terms.
For Bad Credit