• by Jack Loechner , Staff Writer @mp_research, August 11, 2002

According to a nationwide survey by the Cambridge Consumer Credit Index reported in Newstream, 51%of all Americans are planning to take a vacation more than 75 miles from home, and 23% are charging their vacations on credit cards. 65% will pay for their vacations out of checking or savings accounts and 1% will either borrow money from friends or withdraw funds from investment accounts.

Jordan Goodman, spokesperson for the Index, said "wealthier and older Americans are vacationing far more than lower-income and younger Americans, and when on holiday they are feeling free to use their credit cards much more." A study by ICR/International Communications Research showed that 40% of Americans 65 or older are putting their holiday expenses on credit cards, while 38% of those earning more than $75,000 are charging their vacations.

The Cambridge Consumer Credit Index, an economic indicator of consumer spending and debt, in conjunction with the Cambridge Credit Counseling Corporation, released its monthly survey of people who have called for credit counseling services over the past month.

In July:

• 36% of Americans say they have taken on more debt, with 23% taking on a little and 12% taking on a lot more debt.
• 64% of Americans have paid off debt, with 47% paying off a little and 17% paying off a lot.

The primary reason that callers found it necessary to get help with their debts in the order of their responses:

• 29% are frustrated with high bank rates and fees
• 22% say their income has been reduced
• 14% want to save for a house or retirement
• 12% got into too much debt by overspending
• 10% took on too much debt because of lack of financial education
• 5% toke on huge debts because of medical expenses source: cambridgeconsumerindex.com/camsurvey.asp

Jordan noted that "It is striking that every month more Americans say they are going to pay off debt than actually do so. A month ago 81% of Americans said they were going to pay off debt, but only 64% actually did so. While many Americans have the best of intentions to pay off debts, the reality is that many of them are sinking deeper into debt every month."

You can find out more here.