More Americans are feeling less confident in their finances and fear they won’t have the ability to exit the workforce, according to a new survey from TD Ameritrade.
In the study, 37% of Generation X, people born between 1965 and the late 1970s, said they can’t afford to stop working and “fully retire” someday. The report also found 17% aren’t saving or investing anything and 43% are behind in their savings.
Chris Hogan, Ramsey Solutions financial expert, said Americans need to understand what’s at stake and be more informed on how to be better savers.
“I think those numbers are higher,” Hogan told the FOX Business’ Maria Bartiromo on “Mornings with Maria.” “People need to wake up and get more serious about this topic.”
Meanwhile, credit card debt soared to a record high in November, reaching $1 trillion, according to the Federal Reserve, as credit card balances rose 13%.
“Americans have developed this appetite for debt and it’s in epidemic proportions. We have this mentality of I’ll just get it now and deal with it later.” said Hogan. “The problem is people are going to be paying off holiday spending in July and August of this year. So what we have to do is start to help people to understand that debt is not your friend, it’s a thief. It steals from you now and it makes you pay later.”
Americans can also expect higher minimum payments, thanks to the Federal Reserve’s interest rate hikes, Hogan added. However, debt is something that can be controlled.
Here are Hogan’s tips for getting out of debt: “List your debts out from smallest to biggest and attack that little one first while you make minimum payments… There’s another step. When you pay off that credit card close it out,” he said.