Financial security decreases in the New Year

February 15th, 2010 | by admin |

The holiday season has left many Americans unsure about their security, according to a survey released Tuesday by financial service provider Country Financial.

While the company’s Security Index showed improvement at the end of 2009, it fell by 3.2 points in February. This decline is often witnessed early in the year, when credit card bills from the holidays start coming in, according to Keith Brannan, vice president of financial security planning for Country Financial.

“This year’s decline is more severe, however, and probably represents the struggle to remain patient with our nation’s financial recovery,” Brannan said. “If there is good news, it’s that most families can achieve financial security, even if it’s difficult to see the light at the end of the tunnel right now.”

Retirement confidence remained stable for those within the 50- to 64-year-old age range, but decreased overall. About 7 percentage points fewer respondents reported setting aside money for savings or investments. Sentiment also decreased regarding insurance. About 79.3 percent of respondents felt that their house, car and possessions were adequately insured, down from 84.1 percent in December.

“Financial security is about safeguarding what you’ve already achieved – home, property and income – while at the same time saving and investing for your family’s future,” Brannan said.

Respondents also felt less secure about their ability to pay off debt as it comes due, according to the report. Confidence was 8 points higher among men than women, but overall security fell by about 3.8 percentage points.

Still, many consumers showed an interest in paying off their debt in the fourth quarter, according to a recent report by the Federal Reserve Board. Revolving consumer credit, which is often tied to credit cards, fell at an annual rate of 13 percent in the fourth quarter.

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While the company’s Security Index showed improvement at the end of 2009, it fell by 3.2 points in February.

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