• by Tanya Gazdik , June 12, 2007

Nearly half of all Americans are uncomfortable with the amount of household debt they carry.

About 74% envision themselves being debt-free at some point in their lives, not including mortgage debt. Yet, of that 74%, 48% do not have a financial plan. And of those 48%, 32% have no plans to develop one.

The seemingly contradictory data comes from a recent survey, and may be attributed to respondents' fear of taking a close look at their finances and financial habits, says Bridget Smith, editor in chief at the Smart Borrower Center at LendingTree, which sponsored by survey.

The nationwide survey polled 1,499 consumers ages 19 and older in March. More than 65 questions were asked in categories such as financial planning, loans and borrowing, credit card debt, borrowing to purchase a home, credit reports and scores, savings, borrowing on-line and perceptions of being debt free. This the first year LendingTree has done the study, and the Charlotte, N.C.-based company plans to do it annually, Smith says.

The survey examines the mindset of different life stages as each relates to acquiring and managing debt. It also distinguishes different levels of acceptance, tolerance or rejection of debt between generations and how the mindset of each life stage progresses throughout the various stages of adulthood.

"There's a real difference in responses among the different groups," Smith says. "For example, people who have not lived through an economic downturn such as the Great Depression have a very different perception of debt."

Young Families, ages 19-34 with children, are the most financially strained. This life stage has the highest debt-to-income ratio (59% spend half or more of their gross income on total debt expense); is admittedly the most uncomfortable with their total household debt (68%) and is the least financially prepared should an emergency occur (59% do not have savings available for an emergency).

In addition, Young Families spend the highest percentage of their income on their mortgage (45% spend 35% or more of their gross income); are commonly associated with high credit card debt (62% have more than $3,000 in credit card debt, of which 29% have more than $10,000); and are the least likely life stage to have a financial plan (64% do not currently have a financial plan).

The survey also shows that 50% of Americans are concerned or extremely concerned about the amount of credit card debt they have, and 10% chose to declare bankruptcy as the only way to solve their debt problems.

Other life stage key results from the survey include:

• 15% of Mature Singles (ages 35-64, no children) have declared bankruptcy to manage credit card debt, the most of all life stages surveyed.
• 35% of Mature Marrieds (ages 35-64, no children) have more than $10,000 in credit card debt, the most of all life stages surveyed.
• 22% of Mature Families (ages 35-64 with children) have consolidated credit card debt and then accrued unmanageable debt again.
• 24% of Seniors (ages 65+) have never checked their credit report or score, the highest of any of the life stages surveyed.