Holidays
Living leaner
More consumers to pay down debt in 2002, study says
By Alisa Weinstein
CBS MarketWatch
Jan. 8, 2002
SAN FRANCISCO (CBS.MW) - Many Americans are vowing to melt
away their debt alongside those extra pounds in 2002, according to a monthly survey.
Paying down debt was the second most popular New Year's resolution, closely following perennial favorites losing weight and exercising
more, the second Cambridge Consumer Credit Index found.
In the spirit of the new year, 84 percent of respondents
plan to pay off debt, up from 74 percent last month. Sixty-four percent said they'll
pay off "a little" and 20 percent said they would pay off "a lot."
After a year of heavy stock losses and rising layoffs,
it's not surprising that consumers are approaching the new year with a cautious
mood, experts said.
Americans are now shouldering more than $7.5 trillion
in consumer debt. Credit card debt makes up $7 billion of that figure and is rising
at the rate of $4 billion to $5 billion each month, said Jordan Goodman, a financial
analyst for Cambridge Consumer Credit Index.
"Debt has grown so dramatically that it's weighing
on consumers like it never has before," Goodman said.
Still, about 16 percent said they'll be adding to
their debt burden this year. Four percent plan to take on "a lot" and 12 percent
said they would take on "a little."
Among the most popular resolutions, 30 percent surveyed
said they plan to exercise and lose weight, 28 percent intend to clear away debts,
13 percent want to improve personal relationships, 12 percent want a better or more
secure job, and 8 percent want to stop smoking and drinking alcohol.
