Some consumers feeling confident about their own debt management abilities despite their feelings on the state of the economy

February 5th, 2010 | by admin |

Despite the fact that some may feel the economy is in a poor state, a recent survey shows that consumers are feeling a bit better about their own personal finances and budgeting abilities.

According to the Discover U.S. Spending Monitor, 56 percent of consumers said the economy is “poor,” which is a point below what was reported in December. However, 49 percent of those polled said they felt that conditions in the economy were going to get worse, which is a point higher than was shown in the previous survey.

The survey also showed that a majority of consumers plan on cutting back on discretionary purchases as they continue spending restrictions they put forward after the holiday season.

“Consumers appear to be holding steady on their spending patterns,” said Julie Loeger, senior vice president of brand and product management for Discover. “The economy remains a concern to them and they are likely to be conservative with spending until there are signs that the economy is improving.”

Though the economy may be doing poorly in their eyes, the number of people who felt their own finances are improving increased when compared to December. Of those surveyed, 34 percent said they rated their financial situation as “good” or “excellent,” which is three points better than the December survey. Twenty-two percent said they felt as though their finances were improving.

However, 47 percent said they thought their personal money situations were getting worse, while 24 percent of respondents rated their standing as “poor.”

Some poll respondents also said they would have money left over after they paid their bills. Of those surveyed, 47 percent said they would have funds left over after paying bills, which is an increase of 3 points over December.

Though consumers may not feel confident about the economy, recent gross domestic product growth for the U.S. may give them some reason to believe the economy is improving. GDP grew at an annual rate of 5.7 percent in the fourth quarter of last year.

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