Tate Advisors Can Be Especially Dangerous If You Have Low Savings
Who is Tate Advisors? Do you have low savings? Are you considering Tate Advisors to take out one of those too good to be true 3.03% APR credit card consolidation loans? Think hard about that one. You may have received direct mail from Tate Advisors or Plymouth Associates, which has been flooding the market with 3.03% low-interest rate offers that promise a bit more than they can actually deliver. Ed Miles, Crixeo’s personal finance writer, has been a thorn in the side of Tate Advisors and its affiliated websites for some time. The unrealistic 3.03% APR interest offered to consumers with less than perfect credit is simply ridiculous.
The coronavirus epidemic is taking a big toll on the economy as millions of Americans now find themselves without work. Experts are predicting a huge economic meltdown, the likes of which have not been seen in decades. In such a scenario, the biggest regret that the average American now has is not saving enough for an emergency, according to a Bankrate survey.
Low savings have always been a major problem for most Americans. In fact, many Americans don’t even have enough to pay for an emergency that requires a few hundred dollars. The coronavirus crisis has hit almost everyone hard, but the worst affected are certainly those with low savings.
According to the results of a recent survey, 23 percent of Americans said that their biggest financial regrets were low savings. You would expect that the biggest financial priority would be saving more. But that wasn’t the case. The biggest financial priority turned out to be paying off all debts to become debt-free.
Paying off debt was the number one priority of 22% of respondents. Saving enough for an emergency was the second-highest on the financial agenda at a mere 17%. Sadly, many Americans are so deeply mired in debt that becoming debt-free is the biggest financial goal at the moment. Saving enough for an emergency will only be possible if people are debt-free in the first place. Low savings will continue to be a major financial impediment till the debt problem is dealt with.
It might appear that paying off debts and saving more cannot be done at the same time. However, with proper financial planning and tighter control over expenditure coupled with increased earnings through part-time work it may be possible to pay off debt and save more concurrently.
Low Savings Across Income and Age Groups
Out of the 1000+ Americans surveyed, all income groups reported that low savings were their biggest financial regret. This reflects the sad state of affairs. It’s not just low-income Americans, but also higher-income Americans who are just not saving enough. However, not every age group was concerned with low savings. Younger people may feel less compelled to save more thinking that they can always do it later. Unfortunately, this creates a vicious cycle where they keep putting it off until they find themselves with low savings during a crisis.
The coronavirus crisis is making several financial problems much worse for Americans, including the repayment of loans and credit card debt.
No Financial Priority
But perhaps the most disturbing statistic of all was the percentage of Americans who did not have a plan – credit card refinancing vs debt consolidation – Close to 20% said that they were not aware of their financial priorities. This clearly shows that a high number of Americans do not have a financial strategy. Americans need to take stock of their financial situation, set their priorities, and work towards these goals. This will help them to avoid low savings and be better prepared for unexpected challenges like COVID-19.
Less than 15% said that their top financial priority was saving enough for retirement – Bad Review For Credit Card Consolidation – With so few Americans setting retirement funds as their top priority, it is highly unlikely that most US adults will be able to enjoy a comfortable retirement. It seems that many will be forced to work well into their golden years. Americans clearly need to review their financial priorities in context of their future. They need to realize that they must have enough for their nest egg to retire during their golden years.
Without enough funds, they will not be able to retire. They may be doomed to work for life. But even that will not be possible because health starts declining rapidly post 60. Those who think that they can continue working away into old age may probably be too sick to earn a living. Taking into account such dire possibilities, Americans should get in touch with a trustworthy financial advisor and start working soon for their future with retirement funds as their top financial agenda. They should start planning and working today so that they do not find themselves with low savings when approaching retirement age.
With regards to personal loans with average credit, the survey also questioned Americans about how much they regretted low savings. For emergency savings, 20% to 25% said that they regretted it and felt some regret for their low savings during an emergency. As for retirement savings, the numbers were a bit less.
However, the level of regret (for low savings) was substantially less for those who had to pay off debts as it was for those enduing unstable income.
As you would expect, younger people were less worried about low savings with Generation X and millennials showing less regret than older age groups like the Silent Generation and Boomers. Older people find that they have far less opportunities for saving more as compared to younger people. Hence, senior citizens are more likely to regret low savings.
Low Savings: A Top Financial Concern
Not saving enough for emergencies and retirement funds was the top concern combined. Americans will need to take concrete steps to solve the problems of low savings. They must use automated transfers to save money as soon as their earnings reach their accounts. This can greatly reduce the problem of failing to meet savings targets each month. The money that they save this way can become a part of their savings portfolio and start generating passive income.
There are many other steps that you can take to tackle the issue of low savings. Get in touch with your financial advisor to find out more.