One in four Americans has more credit card debt than emergency savings, according to a new poll by Bankrate.com.

 Studies showthat 21 percent of Americans — 38 percent of those with incomes less than $25,000 — think that winning the lottery represents the most practical way for them to accumulate several hundred thousand dollars.

According to the National Foundation for Credit Counseling (NFCC), 64 percent of Americans would have to go into debt or sell off possessions to cover a $1,000 emergency, due to lack of savings.

It’s startling numbers like these that inspired America Saves Week, a national campaign aimed to encourage individuals and families to build wealth by saving money. Because most Americans today are not saving adequately for retirement, and most lower-income households do not have adequate emergency savings for unexpected expenditures, the message accompanying this national movement is needed now more than ever.

It’s no secret that tough economic times can make saving difficult, which is why America Saves Week 2012, running Feb. 19 to Feb. 26, is focused on a simple set of instructions that – if followed – can make anyone a successful saver. The instructions may sound basic, but they are the foundation for financial success: Set a goal. Make a plan. Save automatically.

• Set a Goal. You can save more by having a goal in mind. Visualizing what you want to save for gives your savings a purpose. You may be tempted to withdraw from your savings if it has no purpose. But once you have a goal in place, you know that taking money out of your savings is taking away from that ultimate goal. So, what are you saving for?
• Make a Plan. Once you have your goal in place, make a plan of how you are going to save. To start, cut down on your spending and reduce high-cost debt. Next, keep track of what you spend and make a budget. Once you know where your money is going each month, you can cut down on unneeded spending and save the difference. Don’t forget to keep your savings safe, secure, and growing. Banks, credit unions and even the government offer a variety of financial products that can help you save.
• Save Automatically. It can be hard to put aside money for savings. But there is an easy way to save money without ever missing it. Once you know how much you can save, make saving automatic. Many employers allow you to divide your paycheck into different accounts through direct deposit. Take advantage by putting part of your pay into a savings account. If you get paid in cash, take a small amount to the bank to deposit into a savings account each week.

Knowing what you want to save for, how to achieve it and then making the savings process automatic will allow you to reach your savings goal. Visit AmericaSaves.org to find more information about America Saves Week. There, you can find savings strategies and you can take the pledge to become an American Saver.

It is estimated that close to 500,000 people may find temporary employment this holiday season, putting some much-needed money into the wallets of consumers who haven’t had a paycheck in months.

There will be many legitimate uses for this money, but it will only stretch so far. Therefore, MMI and the NFCC suggest prioritizing the use of this money in the following order:

1. Bring all living expenses current – Housing, utilities, and insurance payments are at the top of the living expense list, as these must-haves need to be seen as priorities. The basics of keeping a roof over your head, food on the table, gas in the car, and the lights on will go a long way toward restoring stability to your home life.
2. Catch up on all secured debts – For most people, their largest secured loan is a vehicle. Don’t risk losing it to repossession. Down payment money was used at purchase, followed by monthly payments. This money will be lost if repossession occurs. Further, fees associated with the repossession will be added on. If you can’t totally catch up on past-due payments, call the lender to inquire about an extension, providing a specific payment plan that will bring you current.
3. Pay past-due debt obligations – If you have credit card debt, you need to honor the commitment you made to repay per the conditions of the contract. Not doing so will result in negative marks on your credit report, a lower credit score, late fees, and the potential of a judgment or wage garnishment being filed against you. Your access to existing and future credit will be minimized, putting you in the position of having to pay cash for all goods and services. It can be difficult to obtain new credit in this economic environment, thus making it critical to treat existing credit responsibly.
4. Make any needed home or auto repairs – With a reduced income, it is likely that home and auto repairs have been neglected. Now is the time to address those, as delaying may only worsen the problem. While you’re at it, consider weatherizing your home for the winter months which could result in a nice savings on your utility bills.
5. Sock away 10 percent into savings – A well-funded savings account is insurance against financial disaster. Today is the time to protect tomorrow by opening and contributing to a savings account.

Even though saving is important, in this situation it is critical to bring past due accounts current before addressing saving. That will prevent eviction, foreclosure, repossession, and protect your existing credit, while making a significant step toward financial stability. Even though it will be tempting to spend this money on holiday gifts, it is more important to think long-term. Without a steady income in sight, bringing past-due obligations current will allow you to start the New Year on more solid financial ground.

This guest post was provided by the National Foundation for Credit Counseling (NFCC). Money Management International is a member of the NFCC. The NFCC is the nation’s largest and longest serving national nonprofit credit counseling organization. NFCC Members annually help over three million consumers through close to 800 community-based offices nationwide.

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Instead of putting the topic of savings on the back-burner, try to reframe the way you think about debt repayment.

Even if your current situation seems hopeless, there are steps you can take now that will put you in a better financial position.