“Just over half, 53%, of Americans have more emergency savings than credit card debt,” according to a recent survey from Bankrate.com. While the figure has improved from 44% in 2019, along with a smaller number of Americans having more credit card debt than emergency savings compared to previous years, analysts still see the data as a troublesome marker in today’s economy.

The survey additionally found that “roughly 1-in-7 households (15%) has no credit card debt, but no emergency savings either,” a point that concerns Chief Financial Analyst Greg McBride.

“Having no credit card debt but no emergency savings either is still a precarious position as, without emergency savings, you could be one unplanned expense away from having high-cost credit card debt,” McBride says.

Emergency Savings a Priority

When it comes to deciding between prioritizing emergency savings or paying off credit card debt, the survey found more Americans are trying to boost emergency savings, with 50% of Americans trying to boost emergency savings, 32% trying to pay down debt. Twelve percent said neither option is a priority for them.

Twenty-seven percent of Americans have more emergency savings now compared to when the pandemic began two years ago. While the number may seem bleak, this is an increase from 13% of households who reported the same, in August 2020.

Younger Americans Struggling

Millennials (age 26-41) were the group most likely to report credit card debt exceeding emergency savings, followed by “24% of Gen Xers (age 42-57) and 23% of Gen Zers (age 18-25),” per Bankrate, in a sign that younger Americans are particularly struggling with credit card debt.

“Younger workers were hardest hit by unemployment and income disruptions in the early stages of the pandemic, and it has taken a toll on their emergency savings,” McBride says. “Nearly half, 49%, of adults age 18-32 report a decline in emergency savings since the start of the pandemic, and just 26% now have more savings,” On the other hand, the report found adults aged 58 and older were faring better, with that age group reporting their emergency savings at stable levels now compared to prior to the pandemic.

‘Trouble Beneath the Surface’

McBride tells Newsmax Finance he see “trouble spots revealed beneath the surface” in the data. “The Achilles heel, financially, for Americans has long been the lack of emergency savings.” Savings took a hit during the pandemic, “so it is appropriate to rebuild or start to build the emergency cushion, which is why we are see prioritizing of emergency savings among all groups,” he says.

Additionally, McBride sees rising interest rates as another looming trouble spot on the horizon, adding, ““Higher interest rates will be a stiffer headwind on debt repayment for Americans. As the economic recovery unfolds, we are seeing debt rising again. This is problematic because we are seeing rising interest rates coming, and the burden of debt repayment is only going to grow. This is because interest rates will be going up, and [the rates will be] increasing faster and higher than what we have seen in some time.”

Boomers' Better Handle on Money

Finally, McBride sees a contrast between younger and older Americans on paying off debt, stating, “In terms of these metrics, Baby Boomers (adults 58 plus) are least likely to have credit card debt that exceeds emergency savings, and they are twice as likely to be prioritizing emergency savings over debt repayment.

With Baby Boomers getting closer to retirement, some of their debt may have been paid down in recent years, and now the focus is on building up assets. It takes time to build up an emergency savings cushion. Debt incurred in earlier years can eventually be paid off,” but broadly, McBride sees younger Americans struggling more, particularly with credit card debt.