Credit card debt increases stress for Americans

09.08.09
By Lewis Green

There may be a lot of talk about the economy turning around, but do consumers feel their personal situation brightening?

A new study from Consumer Reports suggests that a combination of credit card debt, personal loan problems and healthcare issues are keeping people from feeling positive about their finances.

In September, the Consumer Reports Sentiment Index was measured at 38.1, the lowest level seen since October 2008.

Some of the possible reasons for this negative reading can be seen in the findings from the Consumer Reports Trouble Tracker, which showed that nearly 38 percent of Americans suffered some sort of financial problem over the past 30 months.

For example, 15.6 percent of Americans saw higher credit card interest rates and fees during that time period, 8.5 percent lost their health insurance or saw their coverage reduced and 6 percent were denied a personal loan.

The households most heavily affected by these sorts of financial calamities were those earning less than $50,000 per year, according to the data.

However, Consumer Reports' findings were not strictly negative. They also revealed some positive signs for the economy as a whole, particularly when it came to expectations for spending and jobs.

The Consumer Reports Retail Index showed some stability, while the Employment Index rose to 50.3, an increase described as a "significant improvement" by the research group.

"Despite the negative forces consumers are facing, we have seen some stabilization and improvement in key indicators that suggest we could see and improvement in consumer sentiment over the next month," said Ed Farrell, director of the Consumer Reports National Research Center.

Still, it remains to wait and see whether Americans will find their personal financial situation improves in the coming weeks.

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Credit card debt is adding to consumers' stress.