Overwhelming Majority of Americans Feel Consumers Are Taking on Too Much Debt

MINNEAPOLIS, MN – An overwhelming majority of Americans (92%) feel consumers are too much in debt, according to a new public opinion survey conducted April 8-11, 2005, by KRC Research for ACA International, the Association of Credit and Collection Professionals. At the same time, nearly three out of four Americans (72%) believe it has become more acceptable over the past decade for consumers to not pay their debts.

Americans with debt overwhelmingly identified “spring” (36%) and “summer” (35%) as the seasons in which they are most likely to get control of their finances and pay down debt that they owe. The smallest percentage of these consumers felt “fall” (6%) was the season when they would be able to pay down their debts, with “winter” (14%) also ranking significantly below “spring” and “summer.”

“As the use of credit has grown across the economy, companies are increasingly relying on the debt collection industry to ensure they can collect on the credit they have extended,” said Gary Rippentrop, CEO of ACA International. “Given the amount of credit available, keeping losses from bad debt down has become vital for American businesses.”

The survey also showed a significant difference in the perceptions of older and younger Americans towards paying debt. Far fewer Americans in the 18-34 age range (56%) believe consumers pay their bills because it is the “right thing to do” than do those 35-54 in age (70%).

“Over the years we have seen a change in attitude toward debt, especially among young Americans,” Rippentrop said. “This makes our job of working with consumers on the debt they owe to companies, and federal, state or local governments even more necessary.”

Across all age ranges, nearly three out of four Americans believe people pay their bills for personal reasons, including: that if they don’t they will be called by a collection agency (73%), they won’t be able to make additional purchases (73%), or their credit score will go down (71%). Ranked significantly lower was concern about the impact on the person/business they owe (29%), or concern about the impact on the American economy (19%).

The telephone survey was conducted by KRC Research with a nationally representative sample of 1,000 adults 18 years or older. The survey was conducted April 8-11, 2005. The margin of error is +/- 3.2%.

The full survey results are available at http://www.acainternational.org/media.aspx?cid=6287.