GREENSBORO, N.C. — How much credit card debt do you have versus the amount of money in your emergency fund? A Bankrate survey of a thousand people shows for 36% of them, credit card debt was higher than the money they had in emergency savings. That's the highest percentage since Bankrate's polling began in 2011.
"The thing about emergency savings is, it is your buffer between you and high-interest rate debt when unplanned expenses arise.," said Greg McBride, Bankrate's Chief Financial Analyst.
When it comes to how the generations deal with money, the survey showed that GenXers (47%) and Millenials (46%) were significantly more likely to have more credit card debt than emergency savings. GenZ came in third with 32% and Baby Boomers had the smallest percentage at 26% with debt and savings.
So, how do you get those stats to flip? Bankrate experts say save and pay down debt at the same time.
"Work on both at the same time. This is not an either-or proposition. Automate the savings, so it happens first before you even see the money, then channel your take home, pay into paying down that credit card debt as quickly as possible," said McBride.
MORE WAYS TO GET WFMY NEWS 2
Subscribe to our daily newsletter Let’s Get 2 It!
Download the WFMY News 2 APP from your Apple or Google Play store.
ADD THE WFMY+ APP TO YOUR STREAMING DEVICE
ROKU: Add the channel from the ROKU store or by searching for WFMY.
Amazon Fire TV: Search for WFMY to find the free app to add to your account. You can also add the app directly to your Fire TV through your Amazon account.