Perception (Many Say They Are Savers) Vs. Reality (Many Admit They're Struggling)

Published May 28, 2007, 1:00 a.m. EDT

Updated August 27, 2020, 1:51 a.m. EDT

2 Min Read

COSTA MESA, Calif. - For the second year in a row the national savings rate in the U.S. has been negative, yet a new survey finds 65% of consumers say they are regular savers.

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That same survey, the Experian-Gallup Personal Credit Index survey, also found that 31% of consumers report it's hard enough just to make ends meet. In addition, the survey found that the Personal Credit Index is down 15 points to 90, which is the lowest level in the survey since November 2006. The survey also probed for consumers' financial concerns, credit card usage, quality of life and spending habits.

"Although many more Americans say they are saving regularly than is the conventional wisdom, consumers' greatest worry is not having enough money for retirement, with 42% of all consumers voicing this concern," said Ty Taylor, president of Experian Consumer Direct.

Other findings:

* 38% of Americans are concerned about not being able to pay medical costs associated with a serious illness.

* 28% fear not being able to pay the medical costs for normal health care.

* 28% worry about not being able to maintain the standard of living they enjoy.

* 21% are concerned about not having enough money to pay their monthly bills.

* 16% are worried about not being able to pay their rent, mortgage or other housing costs.

* 13% worry about not being able to make minimum payments on their credit cards.

Quality of Life

According to the survey, three in four consumers (76%) feel they have enough money to live comfortably. Among those having incomes of $75,000 or more, 91% believe they have enough money to live comfortably, while only 61% of those having incomes less than $40,000 annually feel they have enough money to live comfortably. Similarly, 88% of those who have graduated college feel they have enough money to live comfortably, compared with 69% of those with a high school education or less.

Spending Habits

A majority (54%) of consumers feel this is a bad time to spend money, as opposed to 42% who feel they are in a good position to buy some things they would like to have. However, how consumers feel about spending money is highly related to income.

* Only 26% of those making less than $40,000 annually feel they are in a good position to buy, while 71% feel they are not.

* In sharp contrast, 60% of those making $75,000 or more feel they are well-positioned to spend, while only 38% of these consumers feel they are not in a good position to buy.

* Among those making $40,000 but less than $75,000, 44% feel they are in a good position to spend, while 53% feel they are not.

Spending Habits

The Experian-Gallup Personal Credit Index is based on a monthly nationwide survey of households and measures four key areas related to credit: level of debt, monthly payment burden, credit rating and debt extension capability. The sampling was conducted in January, February and March 2007 and included 3,013 adults, age 18 and over, randomly selected from across the country. The sampling error is plus or minus two percentage points.