Home Page Americans Hit Record Debt Numbers and Survey Shows That We Are Miserable Living on Credit FORT LAUDERDALE, Fla., March 24 /PRNewswire/ -- Americans think living on credit and carrying large debts are making their lives miserable, according to Consolidated Credit Counseling Services' latest survey. The survey of 5,000 participants of an online poll, conducted by the nonprofit organization that helps people with debt and money management issues, found that 63% say debts are making their home lives unhappy and 43% have a debt to income ratio of 50% or more. Household debt grew 10.4 percent in 2003, the biggest increase since 1987. Net savings in the economy fell 38 percent to $155.5 billion. "Our money mindset has changed. The old American values are fading away as the depression era generation ceases to exist," says Howard Dvorkin, president of Consolidated Credit Counseling Services, Inc. Consolidated's other findings: 58% state that their credit cards are at or near their maximum credit limit. 62% do not have a savings account. 92% don't have a 3-month emergency fund. 37% took cash advances from one card to make payments on another credit card. 59% only pay the minimum amount due on credit cards each month. "In our instant society, people don't want to wait for anything, and credit enables that immediate indulgence. People need to realize that it will cost them. Pleasure now -- pay later, a lot more later, if you are not careful," continued Dvorkin. According to the experts at Consolidated, a major problem is that people assume they are doing well because they can afford the monthly minimum payments and it's not true. One life event sends many people into financial hardship and then they can't afford to make their minimum payments. The following are a couple of good warning signs provided by Dvorkin: * If you have to apply for a new credit card because the others you've got are maxed out, you are in serious trouble. * If you have to take cash advances from your credit cards to pay your bills, you've got a problem. * If an increasing amount of income goes to paying your debts, it is only a matter of time before things get worse. Counselors are available at 1-800-728-3632. http://www.ConsolidatedCredit.org has downloadable booklets that include worksheets and guidelines for money management. More News: 3-24-04 Past-due card debt sets record 3-24-04 Bush sunny on economy, despite transition "nerves" 3-24-04 Democrats Press Overtime Issue, Stall Trade Bill 3-24-04 Feb. Durable Goods Orders Jump 2.5 Pct 3-24-04 Fmr Treasury chief says U.S. debts imperil stature 3-24-04 US mortgage rates unchanged on Wednesday 3-24-04 Reducing Debt Can Lower Credit Score 3-24-04 U.S. mortgage refinancings rise 3-24-04 Report: Some Credit Helpers Hurt Consumers 3-24-04 Small Business: IRS eases deductions 3-24-04 Union Movement Hits the Road Over Job Losses 3-24-04 US Democrats blame Bush for high gasoline prices 3-24-04 US FTC seeks civil penalty for debt collectors 3-24-04 U.S. spending, debt levels are unsustainable       Financial News

 

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