2005         2004         2003         2002

    Pay off balance in full               39%         39%          43%         37%

    Extended payments                 28%         32%          31%         32%

    Did not use credit cards            33%         29%          26%         30%

Of those who plan to extend payments what proportion of payments you are making?


                                                 2005        2004         2003         2002

    Pay more than half
    the balance off                          17%        19%          17%         13%

    Pay <1/2 but more
    than minimum                           37%        39%          37%         37%

    Pay minimum or slightly more    40%        39%          40%         47%

    Did not make any
    payments at all                          5%         3%           6%            3%

Which of the following statements best describes why you are taking on this debt?

                                                  2005        2004         2003         2002

    Taking on debt because
    I am confident
    about paying it off                      53%         51%          56%    Not surveyed

    Taking on debt because
    I do not have the
    money to pay                           47%         49%          44%


Source: Cambridge Consumer Credit Index

These findings are the result of monthly nationwide telephone poll of 800+ adults conducted by ICR/International Communications Research in the past week, sponsored by the Debt Relief Clearinghouse.  

The overall Cambridge Consumer Credit Index rose by one point in March to 59. The Index fell on the "last month" question, remained unchanged in its present intentions and rose and "next six months" questions.  The "Reality Gap," which is the difference between the amount of debt consumers say they will pay off in the next month versus the amount of debt they actually paid off a month later, fell by 4 points from February to 13 points.  A month ago, 81% of Americans planned to pay off debt, while a month later only 72% actually did so.

The Cambridge Consumer Credit Index is a forward looking economic indicator gauging consumer spending and debt. It is released on the fifth business day of every month to coincide with the Federal Reserve Board's G19 release of consumer credit outstanding data.

"An unforeseen medical emergency can thrust consumers quickly into severe levels of personal debt.  Cambridge Credit Counseling Corp.'s monthly client survey indicates that large and unmanageable medical expenses are consistently forcing consumers to seek credit counseling assistance for themselves and their families.  It is important to recognize that planning for a health emergency is a necessary part of your overall budget," says Chris Viale, Acting President & C.E.O. of Cambridge Credit Counseling Corp.

In conjunction with the Index, the Cambridge Credit Counseling Corp. is releasing its monthly survey of people who have called in for credit counseling services over the past month.

Cambridge  representatives ask callers for the primary reason that they found it necessary to get help with their debts now. Of the 307 people who answered, this was the order of their
responses:

    1. My income has been reduced from a lower salary, less overtime or layoff (35.2%)
    2. I am frustrated with high bank rates and fees (25.4%)
    3. I want to improve my ability to achieve future financial goals like buying a
        house or saving for retirement (14.3%)
    4. I got into too much debt by overspending (7.2%)
    5. Other (8.1%)
    6. Recently divorced or widowed (4.3%)
    7. Large medical expenses forced me to take on huge debts (2.9%)
    8. My lack of financial education caused me to take on too much debt
       (2.6%)

For more information on the survey see http://www.cambridgeconsumerindex.com/index.asp?content=client_survey

The Cambridge Consumer Credit Index number is a composite of these three questions:

    1. In the past month, have you taken on more debt or paid off debt?  The
       Index reads 56 on this question, a drop of 10 points from February.

In March, 28% of Americans say they have taken on more debt, with 21% taking on a little and 7% taking on a lot more debt. Conversely, 72% of Americans have paid off debt, with 55% paying off a little and 17% paying off a lot.


    2. In the next month, do you anticipate taking on more debt or paying off
       debt?

The Index reads 38 on this question, unchanged from February.

In March, 19% plan to take on more debt, with 4% planning to take on a lot and 14% planning to take on a little debt. Conversely, 81% plan to pay off debt, with 63% paying off a little and 19% paying off a lot. In February, 19% planned to take on debt and 81% planned to pay off debt.

   3. In the next six months, do you expect to take on debt because you are
       thinking of making a major purchase such as a car, education,
       appliance, medical procedure, furniture or carpeting?

The Index reads 82 on this question, up by twelve points from February.  In March, 41% of Americans plan to take on more debt to make such purchases, with 12% taking on a lot of debt and 29% taking on a little more debt. In contrast, 59% of Americans plan to pay off debt in the next six months, with 43% expecting to pay off a little and 16% expecting to pay off a lot. In February, 35% of Americans planned to take on more debt, while 65% planned to pay off debt.

"The results of the Cambridge Consumer Credit Index show that consumer's are creatures of habit and are continuing their spending habits seen in the last few years, despite signs of slowing down in both the housing and auto sectors.  Overall the index is at the same levels seen throughout the past couple of years, but the biggest surge is seen in the future intentions question, 7 points higher than the average, indicating consumer optimism about
their future, says Jordan Goodman, spokesperson/financial analyst for the index.

The Index survey is conducted by ICR (International Communications Research) of Media, Pennsylvania over five days in the week before the Index is released. Over 800 households are polled based on random-digit dialing, with all demographic and regional groups in America fairly represented. The Index has a margin of error of plus or minus three and a half percentage points.

For more information about the Cambridge Consumer Credit Index, contact Paramjit Mahli at mailto: pmahli@cambridgeconsumerindex.com or 631-786-6450 or the Index website at http://www.cambridgeconsumerindex.com/.

SOURCE Cambridge Consumer Credit Index
Web Site: http://www.cambridgeconsumerindex.com