Consumers Feel Better about Personal Finances

Consumers Feel Better about Personal Finances

October 7, 2014         Written By Bill Hardekopf

According to a new survey, consumers in the United States are finally starting to feel better about their personal finances.

Absolute Strategy Research has been studying perspectives on job security, future economic prospects and financial success since mid-2009. In June 2010, ASR found that 80% of households worried about their financial predicament, but now that figure has dropped to 66%. America has seen a steady improvement in the way that people feel about their finances, but this is the first time that more people actually feel better off than a year ago, rather than worse off.

The latest report also indicates 24% of those surveyed think their financial circumstances will improve over the next 12 months, which could point to even better findings in the coming year. One in five respondents say their situations have improved over the last 12 months and will continue to get better over the next year.

In terms of how Americans see the country’s economy as a whole, 30% still say the U.S. is in a depression or recession. Nevertheless, that number has dropped from 36% last year, indicating that people are starting to regain hope for the economy.

As of August 2014, 72% of those surveyed said policymakers have not done a good job over the last 12 months, down from 78% in February.

“If US wages accelerate to 3% over the next three quarters and unemployment falls to 5.5%, we believe that the US upswing could morph from an export-led affair into something more broad-based and domestically focused,” the study said. “We may not be seeing the classic credit-led consumer boom, but we think the improvement in US Household Finances may be underestimated by the market.”



The information contained within this article was accurate as of October 7, 2014. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


bill-hardekopf

About Bill Hardekopf

Bill Hardekopf is the CEO of LowCards.com and covers the credit card industry from all perspectives. Bill has been involved with personal finance for over 15 years. He is a frequent contributor to Forbes, The Street and The Christian Science Monitor.
View all posts by Bill Hardekopf
Featured Limited/No Credit
Top Features : No annual fee; reports to major credit bureaus; access to higher credit line after making first 5 monthly payments on time
Featured Fair Credit Card
Top Features : No annual fee; access to higher credit line after making first 5 monthly payments on time
Featured Low Interest Card
Top Features : 1.25X miles on every purchase; no annual fee; bonus of 20,000 miles once $1,000 is spent in first 3 months
Featured Cash Back Card
Top Features : 1.5% cash back on all purchases; $150 bonus after spending $500 in first 3 months
Featured No Annual Fee Card
Top Features : Earn cash back TWICE. 1% when you buy plus 1% as you pay; 0% APR for 18 months on balance transfers
Featured Bad Credit Card
Top Features : Perfect credit not required; Reports to major credit bureaus