Plinqit in Ann Arbor, a savings platform that pays users for learning about personal finances, revealed nearly half of Americans are saving money to pay off debt in its recently published State of Savings Report.
The report uncovers the savings habits of consumers based on a Harris Poll survey of more than 2,000 U.S. adults. It found that 42 percent of Americans say they are currently setting aside money to pay down their debt.
“Debt payoff can instill anxiety, especially during record inflation. High interest rates on debt like credit cards can quickly drain consumers’ budgets and be a barrier to saving,” says Kathleen Craig, founder and CEO of Plinqit.
“Which makes it even more inspiring to see so many consumers recognize the importance of paying off their credit card and loan balances as quickly as possible to avoid getting trapped in this cycle of debt. And we believe financial institutions can help by offering the right products and services.”
The survey findings also show which types of debt Americans are prioritizing, with 30 percent of respondents saving to pay off credit card debt, 11 percent putting money away to pay down student loans, and 18 percent saving to pay down other types of debt.
“The current economic climate has forced consumers to be more strategic about where their money goes and what they are able to set aside money for,” says Craig. “Community financial institutions can empower consumers with the right resources and education to foster long-term financial wellness and help them people find healthy, doable ways to get out of debt.
“This is especially important for those who are unable to keep up with their existing monthly payments and need access to products, such the right loan to help consolidate and better manage their debt.”
With additional interest rate hikes on the horizon and credit card rates at their highest level in nearly 30 years, consumers face even higher costs on debt, leading many to use their savings to reduce their debt.
Understanding that saving is the first step on the path to financial wellness, Plinqit partners with banks and credit unions across the country to provide customers and members with a free, simple, and easy-to-use way to save and plan for future financial needs.
With Plinqit’s patented Build Skills, community financial institutions enable their customers and members to interact with educational content and get paid for learning new financial skills, helping grow their savings.
To learn more, click here.
