Debt Situation Improves for Ohioans

DEBT SITUATION IMPROVES SIGNIFICANTLY FOR OHIOANS IN FEBRUARY

COLUMBUS, Ohio -- The Ohio Consumer Debt Index dropped 
significantly in February, indicating that Ohioans are doing well 
at managing their credit card debt.

The index, which is compiled monthly by Ohio State 
University's Survey Research Unit, stood at 90.5 in February, 
falling from the January mark of 105.7.  Higher numbers indicate 
a deteriorating debt condition.

"The January debt index was at a record high, suggesting 
that consumers were really hitting the charge cards during the 
holiday shopping season," said Lucia Dunn, a professor of 
economics at Ohio State.

"But consumers were able to pay off a lot of that debt 
during February and are in relatively good shape now."

The good news was also reflected in the February Ohio Debt 
Stress Index, which measures consumers' psychological stress 
related to their overall debt, said Paul Lavrakas, director of 
the Survey Research Unit.  The stress index dropped nearly
9 percent to 27.9 in February, from the 30.5 level recorded 
during the previous two months.  Higher numbers reflect higher 
levels of stress.

Lavrakas said that the February 1998 debt stress level was 
nearly two index points less than the February 1997 level, 
probably reflecting consumers' greater comfort with economic 
conditions now compared to one year ago.

While credit card debt often goes up after the holiday 
shopping season, Dunn said she was concerned that debt had gone 
up too much this January, and that consumers would not be able to 
bounce back.

The February index eased those fears.  "Consumers are still 
on top of their debt situation for the most part," she said.

Other results:

-- The percentage of Ohioans who carried a balance on their 
credit cards dropped to 41.6 percent in February from 43.7 
percent in January. 
 
-- The percentage who missed the minimum payment on their 
credit card at least once in the last six months dropped to 14.2 
percent from 15.9 percent in January.

-- Ohioans used an average of 18.8 percent of their total 
credit line in February, down from 21 percent the previous month.

The Ohio Consumer Debt Index is computed from data on seven 
components taken in a statewide monthly household telephone 
survey.  Six of the components refer to credit card debt.  The 
seventh component, the debt stress index, covers all types of 
debt.

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Contact:  Lucia Dunn, (614) 292-8071

Written by Jeff Grabmeier, (614) 292-8457