Ohio Consumer Debt Index Declines in June

OHIO CONSUMER DEBT INDEX DECLINES IN JUNE

COLUMBUS -- A drop of almost 5 percent in the Ohio Consumer 
Debt Index for June indicates consumers are trying to reduce 
their debt after a period of higher credit card use, Ohio State 
University economists say.

The index, compiled by Ohio State's Survey Research Unit, 
fell to a value of 84.1 in June, down from a level of 88.4 in 
May.  The index is computed from data collected in a statewide 
monthly household telephone survey.

Of the seven components of debt measured, five showed 
declines in June; one remained unchanged and one increased.  Six 
components refer to credit card debt and the seventh is a 
separate index covering all types of debt.  

The most substantial decrease was seen in the percentage of 
respondents who carried a credit card balance, down to 36.6 
percent in June from 41 percent in May.  The percentage of 
respondents who used more than two credit cards also decreased 
three points, from 15.7 percent to 12.7 percent.

"It's not unusual to see the index turn up in April when tax 
bills come due, but the second round of increases in May were 
more surprising.  The findings for June indicate that consumers 
are indeed trying to draw down debt to more manageable levels," 
said Lucia Dunn, professor of economics and one of the 
researchers working on the survey.  She also noted, however, that 
the June 1998 level remains higher than the consumer debt index 
of a year ago, when it stood at a level of 82.9.

The Ohio Debt Stress Index, which looks at all debt, fell 
just slightly in June to 27.6, down from a level of 28 in May.

"This represents a modest level of debt stress experienced 
by the average Ohioan, and is similar to the debt stress level of 
a year ago, when the level stood at 27.9," said Paul Lavrakas, 
director of the Survey Research Unit.

The debt stress index is computed from questions that ask 
respondents how much they worry about their overall debt, how 
much stress the debt causes, and how concerned they are about 
paying off the debt.

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Contact: Lucia Dunn, (614) 292-8071 (Ohio Consumer Debt Index)
         Paul Lavrakas, (614) 292-3468 (Ohio Debt Stress Index)

Written by Emily Caldwell, (614) 292-8309