Survey: Americans Financially Illiterate

Washington, DC-Recent survey findings highlight a growing need for financial education and credit counseling that helps customers avoid default and foreclosure, which in a backhanded manner also helps financial institutions survive in a challenging marketplace.

Financial illiteracy among Americans remains overwhelmingly high according to a new survey from the Center for Economic and Entrepreneurial Literacy.

More specifically the survey found that up to 69% of respondents "do not know that you have to pay both interest on your entire balance as well as a late fee when making a late credit card payment." Similarly, 97% of respondents can not identify the percentage of a typical service fee on a $20 ATM withdrawal, while 90% do not even know how much the fee is, or think it is less than it actually is.

The survey also found only 16% were aware of the fact one can withdraw money from a Roth IRA account for one's first home purchase, education expenses and for retirement. (c) 2008 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com/ http://www.sourcemedia.com/