ajc.com story copied in its entirety. More proof that despite the distorted rosy government statistics, personal finances are getting worse.
Debt forces one in four to fall behind on monthly bills
By TAMMY JOYNER
The Atlanta Journal-Constitution
Published on: 07/19/06
Despite a growing economy and low unemployment, nearly one in four Americans say they frequently fall behind in their monthly bills because they’re in debt, according to a national survey being released today.
Worries over debt are so pervasive that 82 percent of the 1,000 people surveyed said debt is a “very serious or somewhat serious problem” that’s growing worse.
The survey, conducted by a Republican pollster and a Democratic pollster on behalf of the Center for American Progress and the Center for Responsible Lending, shows the country’s growing “economic anxiety.”
American Progress is a Washington think tank founded by John Podesta, former President Bill Clinton’s chief of staff. Responsible Lending focuses on consumer issues such as predatory lending.
U.S. credit card debt, cited as the No. 1 source of people’s debt in the survey, stands at $813 billion, according to John Halpin, a senior fellow at American Progress. He said the average American family is carrying more than $8,000 in credit card debt.
Personal savings, meanwhile, is at seven-decade low, with Americans dipping into their savings or borrowing against lines of credit.
Despite those sobering statistics, Americans actually are carrying debt well beyond credit cards, the study found.
More than half of those surveyed said they owe more than $10,000. Two in 10 of those are $20,000 in debt, the survey found.
Mortgage debt is not included in those figures.
Seven in 10 Americans reported their debt has grown or stayed the same during the past five years. They traded disposable income for homes and cars, college loans and impulse purchases. But they also cited factors beyond their control: a higher cost of living, low wages, unemployment, rising gas and energy prices as well as child care and medical costs.
The “Debt Matters” survey looked at debt in relation to other concerns. For example, Americans are more worried about falling behind financially because of medical bills than becoming victims of terrorist attacks or natural disaster.
Once thought to be a problem of the poor, household debt is “clearly seen as a middle class issue now,” said Halpin, also an opinion analyst at American Progress. “It is a real threat to middle class aspirations.”
The findings will be released today in Washington at a day-long conference on household debt.
One of the most troubling findings in the report: 86 percent of those surveyed said they believe more Americans are struggling with debt in the past five years.
“Eighty-six percent is a stunning number as a pollster,” said Bill McInturff, partner of Public Opinion Strategies, an Alexandria, Va., Republican polling firm that helped conduct the survey. “This survey adds a dimension about what’s happening in people’s personal lives.
“At the macro level we have a lot of good numbers. At the micro, personal level, people are expressing concern about their debt. And this survey tells us why people have been resistant to adopt a more positive outlook about the economy.”
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