Survey shows Americans thoughts on Investing and Debt

As Americans become less likely to invest in the stock market, a new Bankrate.com survey shows people are less comfortable about their debt compared to a year ago. Chief financial analyst Greg McBride explains what could be behind the nervousness. “Student loan burden in particular has really mushroomed over the past several years that may be just starting to take its toll in terms of how consumers feel about their comfort level with debt.” New research from Bankrate.com shows that 73% of Americans are afraid of dipping their toes into the stock markets, adds McBride. “We see that once again nearly three in four Americans say that they are not more inclined to invest more in the stock market despite those record low interest rates and the recent record highs in the market.” McBride says this has been the case for a couple of years now, despite recent stock market highs. “What we are seeing here is just an indication of how burned many consumers felt not only after the financial crisis but for a lot of people that was the second time they gotten burned by the stock market.” McBride says one economic group is especially jittery. “Upper middle income households, those with income between $50,000-$75,000 a year had a notable decline in their comfort level with debt.” Despite record highs and the record lows in terms of interest rates on cash and fixed income investments, individual investors are not warming to the stock market.