Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Debt Stress Drops for Third Straight Month, Survey Finds

20.11.2009
While American consumers still worry about the amount of money they owe, a new survey shows their level of stress concerning debts has declined for a third straight month.

The Consumer Debt Stress Index (DSI) fell about two points in October, to 130.1 from 132.8 in September. The DSI has fallen for three straight months now, the first three-month drop in more than a year. It is now at the lowest point since March 2009.

“The first hints of favorable economic news have undoubtedly relieved consumers’ concerns about their debts to some extent,” said Lucia Dunn, professor of economics at Ohio State University, and one of the leaders of the study.

“However, the DSI is still high by historic standards, and that could cause consumers to tighten their purse strings in coming months.”

Dunn said the November DSI will be crucial in predicting how much consumers are willing to spend in the important holiday shopping season.

The DSI is conducted by Ohio State’s Center for Human Resource Research and is based on telephone interviews of randomly selected Americans. Each month’s index score is based on the past three months of interviews, with the average sample size being 658.

The DSI has been conducted monthly since January 2006, where its base value was set at 100.

The index fell into the 90s through most of 2006 and the first half of 2007 as the economy boomed, indicating that consumers felt comfortable with their debt levels. After the collapse of the subprime mortgage market, the index began a sharp turnaround, reaching a peak of 155.3 in July – the highest it has been since the inception of the current index. Since then, the index has started dropping.

Positive signs in the economy seem to be encouraging women more than men. Although women tend to have higher levels of debt stress than men, their stress levels have been dropping faster than those of men, Dunn said.

In October, women’s stress index was at 136, down from 143.6 the previous month. Debt stress levels for men, on the other hand, were roughly the same in both months: 122.9 in October, compared to 120.7 in September.

The negative impact of debt on family life, job performance and health also lessened for many Americans in October, the index revealed:

-- 24.3 percent of respondents in October said debt caused a medium to extreme problem on their family life, down from 30.3 percent in September.

-- 12.2 percent of respondents in October said debt caused a medium to extreme problem in their job performance, down from 16.2 percent in September.

-- 21.9 percent of respondents in October said debt had a negative impact on their health, down from 25.7 percent in September.

“While the drop in debt stress has been encouraging the past three months, we don’t know yet if the good news will be enough to save the holiday shopping season,” Dunn said. “We should know more when we get the results in November.”

Contact: Lucia Dunn, (614) 292-8071; Dunn.4@osu.edu

Jeff Grabmeier | Newswise Science News
Further information:
http://www.osu.edu

More articles from Studies and Analyses:

nachricht Real-time feedback helps save energy and water
08.02.2017 | Otto-Friedrich-Universität Bamberg

nachricht The Great Unknown: Risk-Taking Behavior in Adolescents
19.01.2017 | Max-Planck-Institut für Bildungsforschung

All articles from Studies and Analyses >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Safe glide at total engine failure with ELA-inside

On January 15, 2009, Chesley B. Sullenberger was celebrated world-wide: after the two engines had failed due to bird strike, he and his flight crew succeeded after a glide flight with an Airbus A320 in ditching on the Hudson River. All 155 people on board were saved.

On January 15, 2009, Chesley B. Sullenberger was celebrated world-wide: after the two engines had failed due to bird strike, he and his flight crew succeeded...

Im Focus: Breakthrough with a chain of gold atoms

In the field of nanoscience, an international team of physicists with participants from Konstanz has achieved a breakthrough in understanding heat transport

In the field of nanoscience, an international team of physicists with participants from Konstanz has achieved a breakthrough in understanding heat transport

Im Focus: DNA repair: a new letter in the cell alphabet

Results reveal how discoveries may be hidden in scientific “blind spots”

Cells need to repair damaged DNA in our genes to prevent the development of cancer and other diseases. Our cells therefore activate and send “repair-proteins”...

Im Focus: Dresdner scientists print tomorrow’s world

The Fraunhofer IWS Dresden and Technische Universität Dresden inaugurated their jointly operated Center for Additive Manufacturing Dresden (AMCD) with a festive ceremony on February 7, 2017. Scientists from various disciplines perform research on materials, additive manufacturing processes and innovative technologies, which build up components in a layer by layer process. This technology opens up new horizons for component design and combinations of functions. For example during fabrication, electrical conductors and sensors are already able to be additively manufactured into components. They provide information about stress conditions of a product during operation.

The 3D-printing technology, or additive manufacturing as it is often called, has long made the step out of scientific research laboratories into industrial...

Im Focus: Mimicking nature's cellular architectures via 3-D printing

Research offers new level of control over the structure of 3-D printed materials

Nature does amazing things with limited design materials. Grass, for example, can support its own weight, resist strong wind loads, and recover after being...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Booth and panel discussion – The Lindau Nobel Laureate Meetings at the AAAS 2017 Annual Meeting

13.02.2017 | Event News

Complex Loading versus Hidden Reserves

10.02.2017 | Event News

International Conference on Crystal Growth in Freiburg

09.02.2017 | Event News

 
Latest News

New pop-up strategy inspired by cuts, not folds

27.02.2017 | Materials Sciences

Sandia uses confined nanoparticles to improve hydrogen storage materials performance

27.02.2017 | Interdisciplinary Research

Decoding the genome's cryptic language

27.02.2017 | Life Sciences

VideoLinks
B2B-VideoLinks
More VideoLinks >>>