Confidence Comeback: Americans Shake Off Financial Stress

Confidence Comeback: Americans Shake Off Financial Stress

Let’s take a little trip into your future, fast-forwarding all the way to Christmastime 2015.

Think about how you see yourself: Are you breaking open the piggy bank so you can afford some small gifts for your kids? Or are you treating yourself to the cashmere sweater you covet every winter because it actually won’t bust your budget this year after all?

Apparently, many Americans have enough faith in their finances to say that the second scenario is more likely.

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That’s the implication of a new survey from the National Foundation for Credit Counseling, which found that nearly half (49%) of respondents predict their financial situation will improve by this time next year. By comparison, 23% said their financial situation will be about the same, while just 17% said it will get worse and 11% couldn’t decide.

On one hand, such high consumer confidence is a positive sign for the economy. But at the same time, consumers run the risk of being over-confident and spending beyond their means, especially this holiday season.

“Having been cost-conscious since the beginning of the recession, consumers may now be experiencing the seven-year itch with a desire to begin spending again,” Gail Cunningham, spokesperson for the NFCC, said in a press release. “However, if not handled responsibly, attempting to satisfy that itch could invite a personal financial disaster.”

Feeling hopeful about your financial future? Fantastic! But be sure to stay realistic when you hit the mall this month. Use these tips to keep from going overboard with your holiday spending.

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