A Bankrate survey has found that only 51% of Americans have enough cash in their savings accounts to clear themselves of credit card debt.
This is the lowest percentage since the company began its survey in 2011.
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Around 30% of American reported having more credit card debt than emergency savings and 17% said they had neither emergency savings nor credit card debt.
Greg McBride, Bankrate.com’s chief financial analyst, said "This is a reflection of the stagnant incomes, long-term unemployment and high household expenses that are hampering the financial progress of many Americans."
The news comes as the US personal savings rate continues to fall. According to figures form the US Department of Commerce, the US personal savings rate fell to 4.2% in November.
"Consumers took on more debt in December, not surprising considering that consumer spending increased 3.3% in the fourth quarter of 2013, the fastest pace since late 2010, while disposable income was not as strong," said Kristin Reynolds, an economist with IHS Global Insight.
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By GlobalData
