GreenPath Debt Solutions Releases Debt and Personal Finance Survey Results

Nearly one thousand respond to questions on financial obligations

- 95 percent would not be able to pay unexpected bill of $1,500;

- 80 percent stressed out about finances;

- 72 percent pay only the minimum amount (or less) on credit cards;

- 26 percent skip or pay housing bills late.

FARMINGTON HILLS, Mich., Jan. 18, 2011 /PRNewswire-USNewswire/ -- GreenPath Debt Solutions, a nationwide, non-profit financial organization providing consumers with financial education and debt management assistance, recently announced the results of a new financial survey. The online survey was completed by 999 credit card holders from across the United States who inquired about credit counseling services from June-December 2010.

"While we were surprised at some of the statistics, they really do reflect the tough economic situations many Americans experienced in 2010 and likely are still experiencing today," said Jane McNamara, GreenPath president and CEO.

Findings included:

GENERAL FINANCES

• 95% of respondents could not easily pay an unexpected repair bill of $1,500.
• 80% of respondents usually feel stressed out about their finances.
• 41% of respondents have experienced some level of collection activity (notices or phone calls from bill collectors) in the past 3 months.
• 26% of respondents sometimes pay their housing bills (rent, mortgage, gas, electric) late or skip housing bill payments all together.
• 15% of respondents said they follow a budget and track their spending

"Most respondents clearly don't have emergency funds for unexpected expenses," said McNamara. "If possible, we should all try to set aside a 'rainy day fund' for emergencies.  On the other hand, I was pleasantly surprised that only forty-one percent received a recent collection notice or call.  That means fifty-nine percent are seeking assistance before their financial situation becomes a crisis."

CREDIT CARDS

• 82% of respondents had at least 3 credit cards;
• 50% had 5 or more credit cards;
• 72% pay only the minimum payment amount on their credit cards or don't make a payment at all, if they can't afford the minimum;
• 25% pay more than the minimum but less than the full balance;
• 2% of respondents said they pay their credit card statement balance in full each month.  

"These numbers suggest that people are finding it necessary to use credit cards to help make ends meet," said McNamara.  "It's alarming that only two percent pay off their balance in full each month.  The other ninety-eight percent must seek assistance or it will be extremely difficult for them to lower their balances."

INCOME SOURCE

• Ninety percent of respondents have income from a source other than unemployment or disability.  

"Most people who responded had some source of income," remarked McNamara. "This shows that the economic downturn has affected all people, not just those who have lost jobs. We at GreenPath talk to thousands of employed people each day who have real concerns about getting their debt under control."

About GreenPath Debt Solutions

GreenPath Debt Solutions is a nationwide, non-profit financial organization that assists consumers with credit card debt, housing debt and bankruptcy concerns. Our customized services and attainable solutions have been helping people achieve their financial goals since 1961. Headquartered in Farmington Hills, Michigan, GreenPath operates 46 full-time branch offices in eight states.  We also deliver licensed services throughout the United States over the Internet and telephone. GreenPath is a member of the National Foundation for Credit Counseling (NFCC).  For more information, visit www.greenpath.com or call (866) 648-8122.

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SOURCE GreenPath Debt Solutions