Credit cards: avoid them. . . .

As my credit debt inched above $300 recently due to a plane ticket purchase (for a trip to see family later this summer), it appears that more Americans are falling behind in paying their credit card bills.

The percentage of Americans who are delinquent is now 1.3% (which seems low to me, to be entirely honest), but that is up 11% over the previous quarter. Analysts think this might be because people are using whatever tax refund/rebate they've received to pay for everyday costs, like food and gas. Meaning, I suppose, that there's no money left to pay the credit card bills!

I can't tell you how thankful I am that my credit debt is almost nil. Even at $300, I'm trying to find ways to pay it down quicker while not decreasing my savings much. Not having a huge bill hanging over my head when I know my income will decrease later in the summer is a huge incentive NOT to use my credit card except when necessary.

I can't imagine the desperation that some people must be feeling in this (still) horrible economy, with unemployment still rising in some places, and gas prices going up as well. I vow never to put myself in such a precarious financial situation again simply for my own sanity.

All about savers. . . .

Yet another article along the lines of the financial personality piece that I linked to on Wednesday. This one highlights research that pertains to 'Savers'. Here's a little recap:

• 'Savers' start early: 73% indicate that their parents taught them the value of saving money, compared to average savers.
• 'Savers' are less into the luxuries of life: meaning, they live well but they don't necessarily need a high-priced spa treatment or a Coach bag to feel good about themselves. This makes a ton of sense. When I began my frugal journey, I made a conscious effort to ask myself 'WHY' I was purchasing non-essential items---if I couldn't come up with a reasonable answer I didn't purchase it.
• 'Savers' know their limits: budgets are already pretty lean for savers, so cutting additional expenses is sometimes not possible---and savers are aware of how far they can go in finding additional savings.
• 'Savers' are happier with their finances: this makes sense as well. When you're not afraid to open your bills life is much less stressful. I know that having an emergency fund and additional savings accounts helps me sleep better at night!

I wish this article had contained a URL to the study itself, as I wanted to include the tables and graphs (I do love me some graphs!) and to look at the exact numbers and analysis a little further. I'll see if I can find it somewhere online. . . .

Your financial personality. . . .

Whew! I landed on my feet after a weekend at the beach; who knew that three days out of town could result in getting so far behind in everything else? In any case, my mini-holiday was fabulous, and I'm back to the 'grind', as they say, after a rejuvenating beach vacation.

In the midst of catching up on work stuff, I came across this very interesting article in a British paper (the Daily Mail), about a recent survey on people's financial personality. In essence, it appears that of the people surveyed, over 50% are considered 'Amblers', meaning they simply amble through their financial lives, paying little to no attention to bills, savings, and budgeting! I wonder if these numbers would be the same if Americans were surveyed?

Here's a table with the five financial personalities as defined by the researchers:

In reading this article, I kept wondering: where is The Frugaller? Where is the 'personality' for balanced people who pay attention to their finances, are able to live simply and save for the future without becoming neurotic or anxious (as The Hoarder appears to be)?

Doesn't it look as if financial personalities have been defined a little too narrowly by this study, and perhaps a bit negatively? I know in the past I've been The Ambler, The Evader, and The Splurger, and I know people who fit The Validator profile, but I feel as if I now fit into a sixth category---someone who opens her bills without anxiety or delay, who spends quite a bit of time thinking of her finances---without as much worry as a Hoarder---and who is motivated by optimism for the future, rather than fear.