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September 2011 Financial Security Index » Debt

Q:

How do you feel about the amount of debt you have compared to 12 months ago?

One-third of those earning more than $75,000 are more comfortable with their debt, versus 15 percent of those earning less than $30,000.
The inverse is true: 30 percent of Americans earning less than $30,000 are less comfortable, versus 17 percent of high earners (more than $75,000).
Both men and women feel the same way about their debt levels: 21 percent are more comfortable than in 2010; about 25 percent are less so.
Evan Shorten

"I believe consumer sentiment will change when people are feeling more confident their jobs are secure from a strengthening economy."

People are increasingly less comfortable with the amount of debt they have today compared to 12 months ago. People seem to still be feeling the pinch when it comes to job security, and in many cases their overall net worth, which is all-encompassing when referring to one's comfort with level of debt. Further, there are some very real concerns on the economic and job fronts. Consumer sentiment is near a low compared to the last three years, property values are still dropping in many parts of the country and frankly, people are still struggling. I believe consumer sentiment will change when people are feeling more confident their jobs are secure from a strengthening economy.

- Evan Shorten, CFP, president of Paragon Financial Partners in greater Los Angeles.

« Back to the Financial Security Index poll.

 

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