Nearly a Third of Americans (31%) Are Insecure in their Jobs, Causing Reduced Use of Credit, According to the Cambridge Consumer Credit Index

October 2003 (Newstream) -- Almost one third of Americans (31%) feel insecure about their jobs, and that insecurity is causing a third of them to reduce their use of credit, according to the Cambridge Consumer Credit Index. Nearly half of Americans (46%) feel very secure about their jobs, while 8% report being unemployed and 16% are retired.

One third of Americans (33%) have decreased their use of credit or their willingness to take on new debt because of their feelings of job insecurity. Only 9% say they are more willing to take on debt because of their feelings of job security. More than half of Americans (57%) say their current employment situation is having no impact on their credit usage. By gender, more men (48%) felt secure about their jobs than women (43%). Predictably, those with the highest incomes of over $75,000 a year feel the most secure about their jobs (63%), while only 26% of those earning under $25,000 a year feel secure in their jobs.

"Even though the official unemployment rate is 6.1%, the percentage of Americans who feel threatened by the possibility of a layoff (33%) is clearly much greater. This fear is causing many Americans to hold back on their use of their credit cards and dampening their willingness to take on more debt, which is restraining economic growth to some extent. If the economic growth being reported by gains in the Gross Domestic Product start translating into more news of job gains instead of layoffs, this fear may abate and consumers might start to spend more freely again," says Jordan Goodman, spokesperson for the Index.

These findings are the result of monthly nationwide telephone poll of 1000+ adults conducted by ICR/International Communications Research in the past week, sponsored by the Debt Relief Clearinghouse.

The overall Cambridge Consumer Credit Index fell by 3 points in October to 58. The Index was unchanged in the "last month" question, up 2 points in the "next month" question and down a sharp 10 points in the "next six month" question. 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, rose slightly to 15 percentage points from 14 points in September. A month ago, 82% of Americans planned to pay off debt, while a month later 67% actually did so.

The Cambridge Consumer Credit Index is a forward looking economic indicator gauging consumer spending and debt. It is released on the fifth business day of every month to coincide with the Federal Reserve Board's G19 release of consumer credit outstanding data.

In conjunction with the Index, the Cambridge Credit Counseling Corp. is releasing its monthly survey of people who have called in for credit counseling services over the past month. Cambridge representatives ask callers for the primary reason that they found it necessary to get help with their debts now. Of the 891 people who answered, this was the order of their responses:

1. I am frustrated with high bank rates and fees (33.8%)
2. My income has been reduced from a lower salary, less overtime or layoff (22.9%)
3. I want to improve my ability to achieve future financial goals like buying a house or saving for retirement (12.8%)
4. I got into too much debt by overspending (10.8%)
5. My lack of financial education caused me to take on too much debt (6.8%)
6. Other reasons (6.4%)
7. Large medical expenses forced me to take on huge debts (4.4%)
8. My recent divorce or widowhood forced me to take on large debts (2.0%)
For more information on the survey see www.cambridgeconsumerindex.com/camsurvey.htm

"It is clear that job insecurity affects Americans' intended usage of credit," said Chris Viale, chief operating officer of Cambridge Credit Counseling Corp. "However, when working and living during a fluctuating economy, consumers should always have emergency savings built into their budget in the event of a sudden job loss. We recommend to our clients that an emergency savings account with approximately four months worth of savings will allow them to live financially stable lives during uncertain times."

The Cambridge Consumer Credit Index number is a composite of these three questions:

1. In the past month, have you taken on more debt or paid off debt?
The Index reads 66 on this question, unchanged from September.
In October, 33% of Americans say they have taken on more debt, with 21% taking on a little and 12% taking on a lot more debt. Conversely, 67% of Americans have paid off debt, with 46% paying off a little and 21% paying off a lot.

2. In the next month, do you anticipate taking on more debt or paying off debt?
The Index reads 38 on this question, an increase of two points from September.
In October, 19% plan to take on more debt, with 5% planning to take on a lot and 14% planning to take on a little debt. Conversely, 81% plan to pay off debt, with 66% paying off a little and 15% paying off a lot. In September,18% planned to take on debt and 82% planned to pay off debt.

3. In the next six months, do you expect to take on debt because you are thinking of making a major purchase such as a car, education, appliance, medical procedure, furniture or carpeting?
The Index reads 70 on this question, a drop of ten points from September.
In October, 34% of Americans plan to take on more debt to make such purchases, with 9% taking on a lot of debt and 25% taking on a little more debt. In contrast, 65% of Americans plan to pay off debt in the next six months, with 51% expecting to pay off a little and 14% expecting to pay off a lot. In September, 40% of Americans planned to take on more debt, while 60% planned to pay off debt.

"The 10-point drop in intentions to take on more debt over to make major purchases over the next 6 months shows that consumers are becoming increasingly cautious. The Cambridge survey is finding similar results to the recent drops reported in consumer confidence surveys by the Conference Board and University of Michigan," said Jordan Goodman, spokesperson for the Index.

The Index survey is conducted by ICR (International Communications Research) of Media, Pennsylvania over five days in the week before the Index is released. Over 1000 households are polled based on random-digit dialing, with all demographic and regional groups in America fairly represented. The Index has a margin of error of plus or minus three percentage points.

For more information about the Cambridge Consumer Credit Index, contact media relations representative Paramjit Mahli at pmahli@cambridgeconsumerindex.com or 631-786-6450, or economist Allen Grommet, who provides an economic analysis of Index results, at agrommet@cambridgeconsumerindex.com or 800-804-0575, or the Index website at www.cambridgeconsumerindex.com. Consumers wishing to find out more about Debt Relief Clearinghouse referral services should call 1-888-4DEBTHELP or visit www.debtreliefonline.com.

---------------

Produced for Cambridge Consumer Credit Index

Contact:
Paramjit Mahli
631-786-6450
pmahli@cambridgeconsumerindex.com

 
AZ Executives Networking Group

It’s an executive-level networking group focused solely on job search. Welcome attendees include people who’ve held executive level positions such as: President, C-level (CEO, CFO, CIO) VP, or Director of significant division. (Unwelcome attendees include people who are looking for a “leads” group or looking to sell services to this group—although we do schedule social events, and those folks are more than welcome to attend those.)

We meet every other Friday morning at La Quinta Inn (on Shea, just east of the 101). If you want to refer them to us, just have them call me at 480.998.8825 or email azexecs @ cox.net. I’ll give the person info about the group, and tell them how to come prepared to maximize their time.

It’s a very exciting, motivated, and most importantly well-connected group.

Molly Wendell

 

Top Jobs Sites

From: Chris Vicari
Sent: Monday, October 06, 2003 7:18 AM
Subject: [st_pats] Non-Profit Job Industry, Resources & Info


Here are some good resources and information on the nonprofit industry.

... a list of the 10 sites we think every nonprofit in the US should know about. If you have a moment, please share this message with friends and colleagues so that the whole sector can benefit from these resources. Here they are:

1. At http://www.foundationcenter.org the Foundation Center provides information about every foundation in the country. Much of this information is free, but some of it is for paying subscribers only.

2. At http://www.guidestar.org Guidestar lists financial information for 800,000 nonprofits. You can
use Guidestar for research, and you can also update your organization’s entry there.

3. At http://www.idealist.org Idealist.org has built the leading nonprofit job site in the country. In addition
to jobs, you can also list events, volunteer opportunities and internships, and at http://www.idealist.org/consultants you can find the most comprehensive directory of nonprofit consultants on the Web.

4. At http://news.gilbert.org Michael Gilbert maintains a great site with daily news updates bridging the online and nonprofit worlds. You can read the news there, or you can subscribe for weekly email updates.

5. At http://www.nonprofitbasics.org the Center for Philanthropy and Nonprofit Leadership is building a
resource center with lots of great information for starting, running and funding an organization.

6. At http://www.nonprofits.org/npofaq Putnam Barber maintains the Nonprofit FAQ – an older resource center that is special because it is based on actual questions and answers posted by nonprofit managers over the years.

7. At http://www.networkforgood.org people can find volunteer opportunities, and they can also make donations to hundreds of thousands of nonprofits. Most importantly, you can use this site to add a free Donate button to your Web site.

8. At http://www.serviceleader.org you will find a huge site covering every aspect of volunteer management, from screening, matching, record-keeping and evaluation, to legal issues, risk management and virtual volunteering.

9. At http://www.techsoup.org Techsoup has built the leading resource center for all issues related to nonprofit technology. In addition, they offer steep discounts on software for nonprofits, sometimes up to 90% off the list price.

10. At http://www.volunteermatch.org people can find volunteer opportunities all over the country by ZIP code or area of interest.

Lastly, in addition to these 10 online resources, we recommend that people check out http://www.ncna.org/states.htm for the nonprofit state association closest to them.

 
Yahoo! Groups : world_famous_recipes Pending Messages