New Index Tracking Consumer Attitudes Towards Credit to be Released by Cambridge Credit Counseling

Business Wire, Dec 5, 2001

Business Editors

ISLANDIA, N.Y.--(BUSINESS WIRE)--Dec. 5, 2001

The Debt Relief Clearinghouse, America's premier debt-manangement referral agency, announces that it will release the Cambridge Consumer Credit Index for the first time on Friday morning, December 7 at 8:30 a.m.

The Index measures whether Americans are taking on or paying off consumer debt including credit cards, car loans, furniture and appliance loans, and installment debt.

The Index will be released on the fifth business day of every month to coincide with the Federal Reserve Board's G19 release of consumer credit outstanding data. Jordan Goodman, spokesperson for the Index, personal finance expert and author of Everyone's Money Book, says "Unlike the Fed data, which looks at the past month, the Cambridge Index looks forward to assess whether consumers plan to take on or pay off more debt in the coming month and over the next six months."

The Index survey is conducted by ICR (International Communications Research) of Media, Pa. 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 or error of plus or minus three percentage points.

The Index is composed of three questions:

1. In the past month, have you taken on alot more debt, a little more

debt, or have you paid off a little debt or paid off a lot of

debt?

2. In the next month, do you anticipate that you will take on a lot

more debt, take on a little more debt, pay off a little debt, or

pay off a lot of debt?

3. In the next six months, do you anticipate making a major purchase

such as a car, appliance, education, medical procedure, furniture

or carpeting that will require you to take on a lot of debt or a

small amount of additional debt? Please exclude the purchase of a

home or other mortgage-type debt. Or over the next six months do

you anticipate you will pay off a small amount of debt or a large

amount of debt?

The Index is compiled by netting the two positive answers (taking on a little or a lot of debt) with the two negative answers (pay off a little or a lot of debt.). A neutral position, meaning half of Americans are taking on debt and half are paying it off, produces an Index of 100.

In addition to the Index number, each month a "Wild Card" question is asked of consumers to indicate their sentiment on a timely issue regarding consumer credit.

The Debt Relief Clearing House, which sponsors and has trademarked the index, is America's debt-management referral service. It has referred thousands of clients to Cambridge Credit Counseling Corporation, based in Agawam, Massachusetts and the Brighton Credit Management Corporation, headquartered in Palm Beach Gardens, Florida.

For more information on the Cambridge Consumer Credit Index or to arrange an interview with Jordan Goodman, spokesperson for the Index contact, Paramjit Mahli at pmahli@cambridgecredit.org or 631-786-6450.