Member Confidence Slides, Discover Survey Says
A survey conducted by the Discover card brand has reported that the increased economic confidence that credit union members have shown in previous surveys has vanished.
"In December, 47% of credit union members said their finances are getting worse, an equal percentage with non-credit union members," Discover reported. "Six months ago, there was a five-point difference between the two groups, with credit union members expressing greater optimism, comparatively."
The survey also found that more credit union members rated their personal finances as poor in December (22%) versus November (19%). Although more non-credit union members also rated their personal finances as "poor" for surveyors in December, the gap between credit union members and nonmembers on this question narrowed from nine points in November to only six points in December.
"Credit union members continue to be more optimistic than non-credit union members about their finances and the economy; however, the gap between the groups is closing," said Kevin O'Donnell, vice president of credit issuance for Discover. "This decline in confidence may indicate that there's a shared pessimism about personal finances and the economy that transcends where consumers choose to bank."
The study also found that fewer credit union members have money left over after paying monthly bills. According to the survey, only 49% of credit union members said they have money left over after paying bills, a seven-point decrease from November and the first time this number has fallen below 50%, Discover said.