- Benzinga Advisor
- Posts
- An Alarming Number Of Americans Have More Credit Card Debt Than Emergency Savings
An Alarming Number Of Americans Have More Credit Card Debt Than Emergency Savings
Plus, the latest in market news.
Happy Sunday, and welcome to Benzinga’s financial advisor newsletter.
Today we're talking about savings and what that looks like for Americans. According to a national annual study, 80% didn’t grow their emergency savings at all this year. The report also found that 24% of Americans have no emergency savings at all, with an alarming amount having more credit card debt than emergency savings. Read on for the full story.
Plus, a look at all the top stories and market activity from this past week.
Advisor Spotlight: If you would like to be featured in our upcoming Advisor Spotlight and showcase your business, click here to send us an email.
Benzinga Newsletters: If you are enjoying this newsletter, be sure to check out our other free newsletters. From market insights and crypto, to tech trends and exclusive interviews, we’ve got you covered.
Table of Contents
INDUSTRY CHATTER
Shutterstock
Federal Reserve officials remain sharply divided on interest rate cuts, casting doubt on the likelihood of a December rate cut. With inflation trying to creep back up and a weakening labor market, the Fed has some big decisions to make.
Those economic pressures are showing up in household finances. As families head into the holidays — a time when spending rises and financial stress peaks — many wish they had a stronger safety net. And according to Bankrate’s annual emergency savings report, the timing couldn’t be worse as the survey found that 80% of Americans didn’t grow their emergency savings at all this year.
Here’s a look at several key insights from the survey.
Holiday Spending vs. Household Savings — Credit Cards Fill The Gap
While experts typically recommend keeping three to six months of expenses saved for emergencies, in reality, many people don’t have nearly that much saved. In fact, according to the survey, 24% of Americans have no emergency savings at all, and among those who do have something set aside, most fall well short of the 3-6 month recommendation.
With the holiday season approaching, this lack of a financial buffer is particularly risky. Based on projections, households plan to increase holiday spending by 4%, with total spending expected to surpass $1 trillion for the first time. Meanwhile, 60% of Americans report feeling uncomfortable with their savings, and 76% say they cannot cover three months of expenses.
Given these trends, many households are likely to rely on credit cards to fill the gap. Buy-now-pay-later services are also surging, as stagnant wages struggle to keep up with inflation. Currently, one in three Americans has more credit card debt than emergency savings.
Another notable takeaway is that 37% of Americans dipped into their emergency fund, led by Millennials and their parents. The most common withdrawal was $1,000–$2,499, enough to wipe out a small emergency fund. Most of this money went to essentials — medical bills, rent, utilities, and groceries — underscoring that these withdrawals were necessary, not discretionary spending.
So what to make of all this?
For advisors, these findings highlight both a planning challenge and a relationship opportunity. Many clients are heading into the holidays feeling behind or even ashamed of their situation, and framing emergency savings as a long-term habit — not a pass/fail benchmark — can help them move forward.
Small, consistent actions matter more than chasing a perfect six-month target, especially for clients juggling high expenses or variable income. And because so many households are leaning on credit cards to fill the gap, integrating debt management with savings guidance can offer a clearer, less overwhelming path.
In a year when most Americans made no progress at all, helping clients build momentum — even in tiny steps — may be one of the most valuable gifts you can give.
WEEKLY MARKET RECAP
Wall Street just wrapped up one of its bumpiest weeks in months, and not even a blockbuster earnings report from Nvidia (NVDA) — the market's most influential tech giant — was enough to stop the slide.
The Nasdaq 100 dropped 2.2% on Thursday, its worst day in more than a month, as investors continued to unload tech stocks. Worries about stretched valuations are rising again, and so are questions about where the Federal Reserve is headed next.
Even strong results from Nvidia, which easily beat expectations on revenue and issued upbeat guidance, couldn't pull the broader market back into the green.
And if tech had a rough week, crypto had an even worse one. Bitcoin (BTC) plunged to nearly $80,000 on Friday, falling more than 35% from last month's record highs and losing over 10% just this week amid persistent outflows from exchange-traded funds. That's a sharp reversal for an asset that had been riding a wave of institutional optimism earlier in the fall.
A delayed September jobs report — pushed back six weeks because of the federal shutdown — added a layer of complexity. The numbers were mixed: Employers added 119,000 jobs, more than double what economists expected. But the unemployment rate ticked up from 4.3% to 4.4%, the highest level since late 2021. That combination of softening labor conditions and surprising job gains left markets guessing about what comes next.
Rate-cut odds swung wildly this week: just 25% on Thursday, then surging above 70% Friday after dovish remarks from New York Fed President John Williams and Governor Stephen Miran. The sharp pivot underscores how sensitive markets remain to even the slightest nuance in Fed communication.
Beyond Wall Street, everyday Americans are feeling the strain. The University of Michigan's Consumer Sentiment Index came in at 51 for November, its second-lowest reading in more than 70 years. Director of Survey of Consumers Joanne Hsu said households remain discouraged by high prices and weakening incomes. Buying conditions for big-ticket items plunged more than 10 points, and even wealthier households — those most exposed to the stock market — reported a drop in confidence as markets slumped.
Not every sector suffered. Healthcare stocks continued to climb, with Eli Lilly (LLY) becoming the first pharmaceutical company in history to reach a $1 trillion valuation.
THE WEEK AHEAD
Economic Data
Monday: No major reports
Tuesday: Retail sales, PPI, pending home sales, consumer confidence
Wednesday: Initial jobless claims, Durable-goods orders
Thursday: Thanksgiving holiday
Friday: Chicago Business Barometer (PMI)
Earnings
Click here for the full calendar of economic data and earnings reports.
BENZINGA NEWSLETTER SPOTLIGHT
Ring the Bell is free and read by hundreds of thousands of market enthusiasts.
From breaking news and market movers to your daily market recap and top stories, Ring The Bell delivers everything you need to stay ahead in the market.
We also look ahead to key earnings, economic reports and major events so you’re always prepared for what’s next — all delivered straight to your inbox.
A newsletter built for market enthusiasts, written by market enthusiasts.
Reminder, if you would like to be featured in our upcoming Advisor Spotlight and showcase your business, click here to send us an email.
BEFORE YOU GO
Were you forwarded this email? Click here to subscribe.
And be sure to check out our other newsletters:
Ring The Bell: Created for market enthusiasts by market enthusiasts, this twice-daily newsletter delivers top stories, fast movers, and hot trade ideas straight to your inbox. Subscribe here.
Future Finance: Where fintech, crypto, and the future of finance collide. Future Finance is a perfect lunch read packed with quick bites for industry enthusiasts. Subscribe here.
Tech Trends: Get the inside scoop on AI, the hottest gadgets, and mind-blowing tech trends. Subscribe here.