|
Getting Out of Debt is
Americans' Second-highest New Year's Resolution, Closely Following Losing
Weight, According to the Cambridge Consumer Credit Index
ISLANDIA, N.Y.--(BUSINESS
WIRE)--Jan. 8, 2002--28% of Americans think that paying off or paying down
their debt is the most important thing they can do in 2002, according to the
Cambridge Consumer Credit Index.
That's nearly as much as the
perennial New Year's Resolution favorite, losing weight and exercising more,
picked by 30% of Americans. In a nationwide telephone poll of 1000 adults
done by ICR/International Communications Research in the past week,
13% of Americans think improving their personal relationships is most
important, 12% want to get a better or more secure job, and 8% want to stop
smoking or drinking alcohol. Jordan Goodman, spokesperson for the Index,
says: "With consumer debt now exceeding $7.5 trillion, it's no wonder
that getting out of debt has become almost as big a priority in America as
losing weight and exercising more."
For the month of January, the
reading for the Cambridge Consumer Credit Index is 61. This means that on
average 39% more Americans are paying off debt than are adding debt. This is
a one-point rise from the Index's initial reading of 60 in December 2001.
The Index number is a composite of
the three questions asked of respondents every month:
- In the past month, have you taken
on more debt or paid off debt? In January, 39% of consumers say they have
taken on more debt, with 26% taking on a little and 12% taking on a lot more
debt. Conversely, 61% of Americans have paid off debt, with 45% paying off a
little and 16% paying off a lot. The index reads 78 on this question. A
month ago, 31% of consumers had taken on more debt and 69% had paid off
debt, showing that a large number of consumers took on additional debt
during the holiday season.
- In the next month, do you
anticipate taking on more debt or paying off debt? In January, 16% plan to
take on more debt, with 4% planning to take on a lot and 12% planning to add
a little debt. Conversely, 84% expect to pay off debt, with 64% paying off a
little and 20% paying off a lot. The index reads 32 on this question. This
is down sharply from a month ago, when 26% planned to take on more debt and
74% planned to pay off debt.
- 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? 36% of Americans plan to take on more debt to make such
purchases, with 10% taking on a lot of debt and 25% taking a on a little
debt. In contrast, 64% of Americans plan to pay off debt in the next six
months, with 45% expecting to pay off a little and 20% expecting to pay off
a lot. The index reads 72 on this question. The number of Americans planning
to take on more debt over the longer-term is up slightly from December 2001,
when 33% expected to increase debt versus 67% who planned to pay off debt.
- "The results of the Index
survey show how much Americans are struggling with their debts right
now," says Index spokesperson Jordan Goodman. "Despite the
recession and widespread layoffs, four in ten Americans took on more debt
during the holiday season, 16% will take on more debt in January and 36%
expect to take on additional large debts to finance purchases in the first
six months of 2002."
The Index survey is conducted by
ICR/International
Communications Research of Media, Pa., over five days in the week before
the index is released. 1000+ households throughout the country are polled by
telephone with a margin error of plus or minus three percentage points. The
Index 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.
The Debt Relief Clearinghouse, which sponsors the Index, refers consumers to
the debt-management agency best able to handle their problem. To date
thousands of clients with excessive credit card debt have been referred to
Cambridge Credit Counseling Corporation, based in Agawam, Massachusetts and
Brighton Credit Management Corporation, headquartered in Palm Beach Gardens,
Florida.
Cambridge and Brighton help
thousands of Americans in financial distress by educating them on how to use
credit wisely while in turn negotiating lower interest rates, waiving late
and/or over limit fees with creditors to help consumers repay their
unsecured debt obligations. Unlike other debt management firms, Cambridge
and Brighton offer programs that pay a rebate to qualified clients of half
the "Fair Share" contribution received from creditors for every
six months that the client pays their bill on time. These programs, known as
the Good Payer Program at Cambridge and the Bonus Payment Program at
Brighton, have helped thousands of Americans repay their debt load while
rewarding them for their commitment to reduce their debt. For more
information about the Cambridge Consumer Credit Index, contact publicist
Paramjit Mahli at pmahli@cambridgecredit.org or 800-804-0575, or economist
Allen Grommet, who provides an economic analysis of Index results, at
agrommet@cambridgecredit.org or 800-804-0575, or the Index website at
www.cambridgeconsumerindex.com.
Consumers wishing to find out more
about Debt Relief Clearinghouse referral services should call
1-888-4DEBTHELP or visit www.debtreliefonline.com.
CONTACT:
Cambridge Consumer Credit Index
Paramjit Mahli, 800-804-0575
pmahli@cambridgecredit.org
|
