More than half of Americans (56%) say rising gas prices are a major concern for their household budgets and 32% say higher energy costs are a minor concern, according to the Cambridge Consumer Credit Index. Only 9% of Americans are not concerned about rising gas costs, while 2% do not purchase gas.
"The results of the Cambridge Consumer Credit Index wildcard question show that soaring gas prices are causing a real hardship for many Americans, particularly low-income consumers. If gas prices continue to remain at current high levels or even rise more, consumer spending on other less essential items will clearly be reduced in coming months. For the roughly half of Americans that already have burdensome debt loads, high oil prices are making it that much more difficult to keep up with their financial obligations," says Jordan Goodman, spokesperson/financial analyst for the Cambridge Consumer Credit Index.
According to Chris Viale, acting President and CEO of Cambridge Credit Counseling Corp., "As gas and energy prices continue to rise, it is discouraging yet not surprising that the overall percentage of Americans who plan to pay off debt has decreased. With less disposable income to spend each month on other living expenses, it is imperative that consumers evaluate their overall budgets and cut back in other areas to counteract these increasing costs. Paying off debt should always remain a top priority. You can maintain your current standard of living and get closer to becoming debt free -- all it takes is a little planning and some dedication."
"The results of the Cambridge Consumer Credit Index indicate that consumers are becoming more cautious about taking on more debt, as the overall index number dropped by 7 percentage points from last month's record highs. The most significant pullback in expectations of credit use was in the next month category, showing that high gas prices are starting to temper consumer's plans for discretionary spending on other items in the immediate future," says Jordan Goodman, spokesperson for the index.
