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Overwhelming debt from credit cards prevent saving in Texas

Saving money is an important personal finance goal for many people. Having sufficient savings funds can allow a person to be more prepared for any unexpected circumstances, such as a job loss or sudden injury. It can also help people prepare for retirement in Texas or across the country. However, one factor which keeps many Americans from being able to effectively save money is overwhelming debt caused by credit card accounts.

A recent study found that 54 percent of those surveyed stated that they had a savings plan in place which included specific goals they wished to reach. Forty-three percent of survey participants claimed that they had a budget that allowed them to reach those goals. However, one in four individuals in the U.S. currently owe more in credit card debt than what they have in their bank accounts.

This has led many personal finance experts to believe that Americans are improving in their savings habits; however, it is credit card debt that may be keeping some of them from achieving their ultimate goals. Another factor which may be keeping Americans from being able to save is the rising costs of household products. At the same time that expenses are rising, income levels have become stagnant rather than increasing.

Many experts believe it is in the best interest of consumers in Texas and elsewhere to immediately work toward eliminating overwhelming debt by concentrating on paying off credit card balances. One strategy which some personal finance professionals suggest is to begin paying off credit cards with the higher interest rates first. However, in some cases a more viable solution may be to file for bankruptcy, which could potentially discharge all credit card debts and help a consumer achieve greater financial stability going forward.

Source: Ozarks First, "Americans Better at Saving, But Credit Card Debt Hinders," Karin Caifa, Feb. 27, 2013

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