New York, U.S.A. – Bankrate.com’s monthly Financial Security Index hit a new high of 99.9 in April 2012, surpassing the previous high-water mark of 98.5 that was last recorded in May 2011 (the polls began in Dec. 2010). Americans’ attitudes regarding their net worth and overall financial situation also reached new highs this month. Sentiment regarding savings improved for a fifth consecutive month, and Americans’ comfort level with debt is at its highest point since June 2011.

Despite these positive developments, Americans are still wary of investing in stocks. The poll found that 76% of Americans are not more inclined to invest in the stock market despite near record low savings rates, and merely 18% of Americans are more inclined to invest in stocks today. Another soft spot is job security: 22% of Americans reported less job security than one year ago versus 20% that reported better job security.

“Overall, there are several positives that can be taken from this month’s report,” said Greg McBride, CFA, Bankrate.com’s senior financial analyst. “Americans are feeling better about the money they have in the bank and in their investment portfolios, and they’re also feeling better about what they owe. However, job security is still a pain point, and there are plenty of reasons to worry that we might be headed into a third straight weak summer for the economy. The trouble spots include jobs, high gas prices, the ongoing European debt crisis and more.”

A reading of 100 is considered the Financial Security Index’s baseline; any reading above 100 indicates improving financial security compared to one year ago, while any reading below 100 indicates decreasing financial security compared to last year.

Here are more details regarding the components of the Financial Security Index:

Overall Financial Situation

• Consumers’ feelings about their overall financial situation hit a new high, with 29% saying their overall financial situation is better today than it was 12 months ago, compared to 26% saying it is now worse.
• Those under age 50 are more likely to report a better overall financial situation, while those age 50 and up are more likely to report a worse financial situation than one year ago.

Net Worth

• With the stock market near four-year highs, more consumers report higher net worth compared to one year ago than at any time since polling began in Dec. 2010.
• Twenty-nine percent report higher net worth versus 23% that report lower net worth.
• Households with income of $50,000 or more are the most likely to report higher net worth than last year.

Savings

• The margin between those feeling worse about their savings and those feeling better about their savings has been nearly cut in half since Dec. 2011.
• Those under age 30 tend to be more comfortable with their savings, and those age 50 and up tend to be less comfortable with their savings compared to other age groups.

Debt

• Americans’ comfort level with debt is at its highest point since June 2011.
• More consumers report being more comfortable with their debt than less comfortable.
• Households with annual income of $50,000 or higher are more comfortable than other groups, while households with income under $30,000 are less comfortable.

Job Security

• Job security slipped following the disappointing March jobs report that was released on April 6.
• Only one in five (20%) Americans say they are more secure in their jobs compared to last year; 22% are less secure.

Investing in Stocks

• Those under age 30 are only slightly more inclined to invest in the stock market than the overall average (23% versus 18%), despite having the luxury of a long time horizon and having a greater burden of retirement savings than any previous generation.

The new study was conducted by Princeton Survey Research Associates International (PSRAI) and can be seen in its entirety here: http://www.bankrate.com/finance/consumer-index/financial-security-poll-0412.aspx.

The PSRAI April 2012 Omnibus Week 1 obtained telephone interviews with a nationally representative sample of 1,000 adults living in the continental United States. Telephone interviews were conducted by landline (600) and cell phone (400, including 191 without a landline phone). Interviews were done in English by Princeton Data Source from April 5-8, 2012.

Statistical results are weighted to correct known demographic discrepancies. The margin of sampling error for the complete set of weighted data is plus or minus 3.6 percentage points.

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Bankruptcy attorney William Brewer, president of the National Association of Consumer Bankruptcy Attorneys (NACBA), which is the only national organization dedicated to serving the needs of consumer bankruptcy attorneys and protecting the rights of consumer debtors in bankruptcy, issued the following statement:

“The National Association of Consumer Bankruptcy Attorneys has always favored a direct and unflinching examination of the bankruptcy process in America.  We believe in fair play and have no reservations whatsoever about having tough questions posed about the practices of debtors’ attorneys.  It is our view that bankruptcy is simply too important a process in the lives of Americans facing their darkest hours to allow any party – creditors, trustees or consumer legal advocates – to escape scrutiny.

That is why one of NACBA’s board members was a key player in the new study that examines the impact of ethnicity on bankruptcy filings.  We believe that this study is an important start – a much-needed first look – illuminating the path needed for further research.  If the necessary fuller research indicates that there is, indeed, an unfair disparity in how Americans are handled in bankruptcy, NACBA will be the first party in line to propose necessary changes remedy any such imbalance.

In the mean time, we believe it is important to underscore the findings of the researchers that there is no evidence that racism plays any part here.  We can vouch for the fact that bankruptcy attorneys, who deal each year with hundreds of thousands of American families of all races, colors and creeds, are in fact the first-line defenders for Americans who have been unemployed for long periods of time, crushed by crippling health care bills, trapped in the foreclosure crisis, or otherwise fallen on hard times.

Even without the more detailed research needed to resolve this issue, consumer bankruptcy attorneys have no intention of sitting by idly.  NACBA’s Board of Directors will address  this issue at its next and subsequent board meetings, for the purpose of recommending  any needed reforms, guidelines, or attorney practice changes that are warranted.  Additionally, we expect to explore it fully at our next membership meeting in April in San Antonio, TX, where a special panel and full-group discussion will be held.

It also is our intention to reach out to and confer with our many friends in organizations representing Americans of color.  We have spent many long years working closely with these organizations to ensure that bankruptcy is fairer.  They know who we are and what is in our hearts when it comes to fairness and equality for all Americans.

In short, we will simply not rest on this question until we know all the facts and until we have taken every possible step to remedy whatever imbalance may exist.”

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As many gear up to the prospect of a tough 2012, three in four Britons (75%) have made financial resolutions for the New Year, according to financial planning website rplan.co.uk.

With one in seven adults (14%) saying his household is GBP500 or more a month worse off in 2011 than it was three years ago, rplan.co.uk asked a GB representative sample of 2,077 adults which financial resolutions they were planning for 1st January.

Of those that planned financial resolutions:

- More than one in two adults (56%) said they planned to cut back on their spending. Women were more prone to this than men (59% to 50%).

- More than one in three people (37%) wanted to try to save more money each month whilst 36% said a key resolution was to cut down their debts. The research showed an attitude-divide between the young and old with the under 35s top financial resolution focusing on saving, whereas the over 35s top priority was to cut back spending and to reduce debt.

Top 10 financial resolutions for 2012:

Resolution                                                                                Percentage

Cut back on my spending                                                         56%

Save more money each month                                                               37%

Reduce my debts                                                                                       36%

Look for a better paid job to boost my income                                      19%

Ensure I have the best insurance cover available                               12%

Cut down what I spend on insurance                                                    12%

Shop around financial providers so I pay less in charges                 11%

Start/take more action with my pension                                                 9%

Take more control over my investment decisions                                8%

Change my bank account                                                                                6%

- Financial plans that didn’t make the top 10 included: paying off my

mortgage (3%), supporting elderly parents financially (3%), moving house (2%) and

taking out life and income protection insurance (3%)

Andy Creak, Managing Director at rplan.co.uk , commented: “The last year has presented most adults with a near-impossible juggling act, many trying to make cut-backs on a shrinking disposable income, whilst also trying to put money away to support the needs of family members.

At rplan.co.uk, we have put tools in place to help people work out in real terms how much various plans, such as getting through university, may cost and we encourage everyone to take a close look at the costs and charges involved in the financial products they hold, as this is an area where meaningful savings can often be made.”

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