Getting Out of Debt and Losing Weight Tie as the Top New Year's Resolutions for Most Americans, According to the Cambridge Consumer Credit Index
(EMAILWIRE.COM, January 09, 2003 ) For the first time ever, the same percentage of Americans (29%) say getting out of debt and losing weight and exercising more are their top New Year's Resolutions, according to the Cambridge Consumer Credit Index. In January 2002, 30% of Americans said losing weight and exercising more was the most important thing they could do, closely followed by 28% who said paying down debt was most important. The percentage of Americans wanting to improve their personal relationships dropped from 13% in 2002 to 11% this year. The percentage of those wanting to stop smoking and drinking, on the other hand, rose from 8% in 2002 to 11% this year.
These findings are the result of monthly nationwide telephone poll of 1000 adults conducted by ICR/International Communications Research in the past week, sponsored by The Debt Relief Clearinghouse.
"The results of Cambridge Consumer Credit Index indicate that the $1.7 trillion in debt consumers are carrying has become such a burden that the same percentage of consumers now consider getting out of debt equally important to the perennial favorite New Year's Resolution of losing weight and exercising more," says Jordan Goodman, spokesperson for the Index.
The overall Cambridge Consumer Credit Index dropped by nine points in January to 58, as an enormous drop in expectations for taking on debt in the next month outweighed a large increase in debt taken on in the last month filled with holiday gift-buying. The "Reality Gap," which is the difference between the amount of debt consumers say they will pay off in the next month compared to the amount of debt they actually pay off a month later, doubled to10 percentage points, widening the gap between intentions and reality. A month ago, 69% planned to pay off debt, while a month later only 59% 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.
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 1084 people who answered, this was the order of their responses:
1. I am frustrated with high bank rates and fees (32.1%)
2. My income has been reduced from a lower salary, less overtime or layoff (26.1%)
3. I got into too much debt by overspending (12.5%)
4. I want to improve my ability to achieve future financial goals like buying a house or saving for retirement (9.5%)
5. My lack of financial education caused me to take on too much debt (8.5%)
6. Large medical expenses forced me to take on huge debts (6.3%)
7. Other reasons (2.7%)
8. My recent divorce or widowhood forced me to take on large debts (2.3%)
For more information on the survey see www.cambridgeconsumerindex.com/camsurvey.asp
"January and February typically are our busiest months in terms of consumers looking for help with excessive debt levels," said Chris Viale, general manager of Cambridge Credit. "In December alone, we have witnessed a 26% increase of consumers seeking assistance with debt management needs, due to unemployment and a reduction of income levels. This serves as a clear indication that market conditions are having a negative affect on the financial stability of American households."
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 82 on this question, a jump of 22 points from December.
In January, 41% of Americans say they have taken on more debt, with 28% taking on a little and 13% taking on a lot more debt. Conversely, 59% of Americans have paid off debt, with 42% paying off a little and 17% paying off a lot. In December, 30% of consumers had taken on more debt while 70% had paid off debt, indicating that the number of Americans taking on debt is on the rise.
2. In the next month, do you anticipate taking on more debt or paying off debt?
The Index reads 22 on this question, plummeting by 40 points from December--the biggest monthly drop since the launch of the index.
In January 11% plan to take on more debt, with 3% planning to take on a lot and 9% planning to take on a little debt. Conversely, 89% plan to pay off debt, with 64% paying off a little and 25% paying off a lot. In December, 31% planned to take on debt and 69% 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 70 on this question, a drop of eight points from December.
In January, 35% of Americans plan to take on more debt to make such purchases, with 15% taking on a lot of debt and 21% taking on a little more debt. In contrast, 65% 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. In December, 39% of Americans planned to take on more debt, while 61% planned to pay off debt.
"The Cambridge Consumer Credit Index drop of eight points shows that, while consumers used credit heavily in the past month to finance holiday gifts, they are extremely reluctant to take on more debt in the New Year in light of economic uncertainty and the amount of debt they are already burdened with," says Jordan Goodman, spokesperson 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 1000 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 percentage points.
For more information about the Cambridge Consumer Credit Index, contact Media Relations Representative Paramjit Mahli at pmahli@cambridgeconsumerindex.com or 800-804-0575, or economist Allen Grommet, who provides an economic analysis of Index results, at agrommet@cambridgeconsumerindex.com 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.
------------------------
Produced for the Cambridge Consumer Credit Index
Contact: Paramjit Mahli
800-804-0575
pmahli@cambridgeconsumerindex.com
Allen Grommet
800-804-0575
agrommet@cambridgeconsumerindex.com
------------------------
These findings are the result of monthly nationwide telephone poll of 1000 adults conducted by ICR/International Communications Research in the past week, sponsored by The Debt Relief Clearinghouse.
"The results of Cambridge Consumer Credit Index indicate that the $1.7 trillion in debt consumers are carrying has become such a burden that the same percentage of consumers now consider getting out of debt equally important to the perennial favorite New Year's Resolution of losing weight and exercising more," says Jordan Goodman, spokesperson for the Index.
The overall Cambridge Consumer Credit Index dropped by nine points in January to 58, as an enormous drop in expectations for taking on debt in the next month outweighed a large increase in debt taken on in the last month filled with holiday gift-buying. The "Reality Gap," which is the difference between the amount of debt consumers say they will pay off in the next month compared to the amount of debt they actually pay off a month later, doubled to10 percentage points, widening the gap between intentions and reality. A month ago, 69% planned to pay off debt, while a month later only 59% 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.
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 1084 people who answered, this was the order of their responses:
1. I am frustrated with high bank rates and fees (32.1%)
2. My income has been reduced from a lower salary, less overtime or layoff (26.1%)
3. I got into too much debt by overspending (12.5%)
4. I want to improve my ability to achieve future financial goals like buying a house or saving for retirement (9.5%)
5. My lack of financial education caused me to take on too much debt (8.5%)
6. Large medical expenses forced me to take on huge debts (6.3%)
7. Other reasons (2.7%)
8. My recent divorce or widowhood forced me to take on large debts (2.3%)
For more information on the survey see www.cambridgeconsumerindex.com/camsurvey.asp
"January and February typically are our busiest months in terms of consumers looking for help with excessive debt levels," said Chris Viale, general manager of Cambridge Credit. "In December alone, we have witnessed a 26% increase of consumers seeking assistance with debt management needs, due to unemployment and a reduction of income levels. This serves as a clear indication that market conditions are having a negative affect on the financial stability of American households."
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 82 on this question, a jump of 22 points from December.
In January, 41% of Americans say they have taken on more debt, with 28% taking on a little and 13% taking on a lot more debt. Conversely, 59% of Americans have paid off debt, with 42% paying off a little and 17% paying off a lot. In December, 30% of consumers had taken on more debt while 70% had paid off debt, indicating that the number of Americans taking on debt is on the rise.
2. In the next month, do you anticipate taking on more debt or paying off debt?
The Index reads 22 on this question, plummeting by 40 points from December--the biggest monthly drop since the launch of the index.
In January 11% plan to take on more debt, with 3% planning to take on a lot and 9% planning to take on a little debt. Conversely, 89% plan to pay off debt, with 64% paying off a little and 25% paying off a lot. In December, 31% planned to take on debt and 69% 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 70 on this question, a drop of eight points from December.
In January, 35% of Americans plan to take on more debt to make such purchases, with 15% taking on a lot of debt and 21% taking on a little more debt. In contrast, 65% 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. In December, 39% of Americans planned to take on more debt, while 61% planned to pay off debt.
"The Cambridge Consumer Credit Index drop of eight points shows that, while consumers used credit heavily in the past month to finance holiday gifts, they are extremely reluctant to take on more debt in the New Year in light of economic uncertainty and the amount of debt they are already burdened with," says Jordan Goodman, spokesperson 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 1000 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 percentage points.
For more information about the Cambridge Consumer Credit Index, contact Media Relations Representative Paramjit Mahli at pmahli@cambridgeconsumerindex.com or 800-804-0575, or economist Allen Grommet, who provides an economic analysis of Index results, at agrommet@cambridgeconsumerindex.com 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.
------------------------
Produced for the Cambridge Consumer Credit Index
Contact: Paramjit Mahli
800-804-0575
pmahli@cambridgeconsumerindex.com
Allen Grommet
800-804-0575
agrommet@cambridgeconsumerindex.com
------------------------
Contact Information:
Cambridge Consumer Credit Index, Inc.
Joseph Nchor
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Cambridge Consumer Credit Index, Inc.
Joseph Nchor
Tel:
Email us
This is a press release. Press release distribution and press release services by EmailWire.Com: http://www.emailwire.com/us-press-release-distribution.php.
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