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Debt Management by Aramando Duke - Financial Columnist

. Unfortunately, debt is now part of most peoples everyday life, so much so that... Credit Card debt surges . A new report shows that credit card debt has surged to its highest level... Living in debt . Living in debt is a fact of life for many householders. Being in debt... Debt Advice.

Debt Relief Solution According to the latest survey by the Cambridge Consumer Credit Index, 38% of Americans polled plan on using less credit than last year for holiday shopping.Visit our AXcess News Forum and add your comments on this story. Try your hand at writing, the best story will be published on our news network. Take our business poll too!

Credit card and even more so Store card interest are set at exorbitant rates for one reason alone, companies make their money from the consumer’s inability to settle their card balances. Credit card debt is unsecured, whereas other debt like your mortgage is secured (your home acts as security against your debt). With credit card debt, there is no backing security, which means that credit card debt is high risk for banks and hence the high interest rates

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5.5 Billion Dollar Definition A debt that someone incurs for the purpose of purchasing a good or service; a mortgage for purchasing a house is technically not consumer credit. However, the 52 inch television you put on your credit card is a great example. Consumer debt is consumer credit which is outstanding. In macroeconomic terms, it is the debt which is used to fund consumption rather than investment.

Bad Credit Debt Consolidation December 5, 2003 (Axcess News) Cambridge MA - According to the latest survey by the Cambridge Consumer Credit Index, 38% of Americans polled plan on using less credit than last year for holiday shopping.

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Credit Debt Solution Last year 31% of Americans said they would use less credit over the holidays in their gift purchasing, 7% less than the Index's current poll.

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Consolidation Counseling In an announcement today Index spokesperson Jordan Goodman said, "The results of the Cambridge Consumer Credit Index show that more consumers plan to use less credit for Christmas shopping, implying that more will be making purchases using savings and cash. Consumers already burdened with credit card debt also have high hopes of paying off their balances in full when the bills arrive in January. However, Cambridge's experience with the Reality Gap shows that consumers usually underestimate their willingness to take on debt and overestimate their ability to repay it quickly."The Cambridge Index also asked consumers who plan to use credit cards this season whether they expect to pay them off in full when the bills arrive in January. 60% say they expect to pay off their balance in full, up from 58% a year ago and 55% in 2001. 36% expect to carry a balance on their credit cards for more than a month before they pay them off, unchanged from 2002, and down from 39% in 2001. Only 4% plan to pay off some cards and carry balances on others, down by 2% from 2002 and 2001.200320022001

Credit Card Debt More credit card debt4%2%4%

Debt Free Solution Less credit card debt38%31%30%

Debt Negotiation Services About the same credit card debt29%31%31%Will not use credit card debt29%35%36%Repay bills in full 60% 58%55%

Debt Solution Company Carry bills for more than a month36%36%39%Pay off some cards and

Debt Elimination Services carry balance4% 6% 6%

Debt Reduction Source: Cambridge Consumer Credit IndexIn December, 30% of Americans say they have taken on more debt, with 22% taking on a little and 9% taking on a lot more debt. Conversely, 70% of Americans have paid off debt, with 53% paying off a little and 17% paying off a lot.

Debt Solution Inc The "Reality Gap," which is the difference between the amount of debt consumers say they will pay off in the next month versus the amount of debt they actually paid off a month later, narrowed by 5 percentage points to 7 points from 12 points in November. A month ago, 77% of Americans planned to pay off debt, while a month later 70% actually did so.

Debt Settlement Services "The Cambridge Consumer Index survey shows that consumers are expecting to take on a great deal of new debt in the next month and six months, which is a sign of rising confidence in their economic future. Clearly part of the increase is seasonal since people take on more debt to buy holiday gifts. But with the Index rising to its second highest level in history, it is evident that consumer optimism is also spreading across America," said Goodman.

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