Debt Consolidation Depot
Debt Consolidation & Financial Information Resource Center
March 24, 2004
FORT LAUDERDALE, Fla., /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
mind
set 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.
© 2004 DebtConslidationDepot.com