Infographic – UMB Debt Coaster

Posted on 12/23/13 11:45:00 AM

For some Americans, curbing debt is about as easy as controlling a fire hose streaming full blast. That doesn’t mean taking control of debt is impossible; it just means that most Americans could use a little help from a financial partner in order to keep their finances from running amuck.

With nearly 50 percent of all Americans struggling to keep up with monthly expenditures, many are forced to draw on their savings to cover day-to-day expenses.1

But how can any American save money if they are constantly diving into their savings account?

Unfortunately, many can’t.

The average American owes $118,000 in debt, and nearly four out of 10 adults are hampered by carrying credit card debt over from month-to-month. Most aren’t even sure where they stand, as two-thirds of Americans haven’t accessed their credit report in the last year. Another third is unable to pay their bills on time due to the number of accounts they own.2

Holiday shopping and financial strains

The holiday season typically compounds matters with many Americans spending more than expected on travel, gifts for loved ones and other unplanned expenses.

According to the National Retail Federation(NRF), the holiday shopping season accounts for 20 to 40 percent of retailers’ annual sales, with many of those shoppers willing to go into debt to buy their children gifts.

The NRF reported a whopping 57 percent of parents would be willing to take on debt over the holidays in order to buy gifts for their kids. For those with a household income of less than $35,000, the average parent would be willing to rack up an average of $700 in debt. Meanwhile, parents from homes taking in more than $75,000 in annual income were willing to rack up just $300 in debt.

Getting out of debt

However, there is light at the end of the tunnel. Fifty-five percent of Americans have been able to place more money into their savings account than what they owe in credit card debt.3

For those that haven’t been so fortunate, teaming up with a UMB financial partner can help you develop a plan for managing your debt.

With a little hard work and a little help from a financial planner, you’ll be able to rest easier knowing you’re on the road to a better financial future.

Infographic - UMB Debt Coaster

1 Consumer Federation of America. Many Familiers Struggle to Make Ends Meet, But Those With a Financial Plan Feel and Do Better. July 23, 2012.

2 Wesley, Dan. The American Family’s Financial Turmoil. Visual Economics. April 4, 2010.

3 Steiner, Sheyna. Credit card debt hits all incomes – big and small. Bankrate.com. February 25, 2013. .