According to a recent survey by PwC, PricewaterhouseCoopers LLC, nearly half of working Americans are struggling to meet their financial obligations. A myriad of factors are causing the financial un-wellness, including lack of cash savings and debt management issues. The survey included 1,610 adults that are making a minimum annual income of $30,000.
Survey respondents say their financial problems are causing them to pay their bills late. Late payments create new problems as credit agencies monitor whether payments are made on time. Late payments can pull down credit scores, which cause a domino effect in establishing new credit in the future and may cause credit card companies to increase the interest rate on current accounts.
Necessities on CreditWithout the cash they need readily available, 25% of the survey respondents also admit to paying for necessities on credit. This includes buying groceries, but goes beyond the table. Other respondents say they have to put other necessities on their credit cards, such as paying for utilities and more.
All Income Levels
Although survey respondents made a minimum of $30,000, some respondents were making much more than this. Even wage earners bringing in more than $100,000 a year admitted to having trouble covering their bills. In fact, more high income earners are charging necessities than lower income earners.
Approximately 35% of those earning more than $100,000 annually are charging food bills, utility bills and other daily living expenses on their credit cards because they don’t have the cash to pay for these items.
In addition to causing daily struggles, this financial un-wellness is also affecting long-term planning. Americans are postponing their retirement as they fear that they do not have enough money saved to retire as planned. Approximately 34% of those surveyed admit that this is what is delaying their retirement. Others are neglecting to fund retirement savings accounts because they simply do not have the “extra” money to put away for later days.