SRIC-BI: Credit Card Debt Increased 177% in the Past Decade for the Wealthy.Business Editors NOTE TO MEDIA: Multimedia assets available MENLO PARK Menlo Park. 1 Residential city (1990 pop. 28,040), San Mateo co., W Calif.; inc. 1874. Electronic equipment and aerospace products are manufactured in the city. Menlo College and a Stanford Univ. research institute are there. 2 Uninc. , Calif.--(BUSINESS WIRE)--Oct. 23, 2002 According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the most recent MacroMonitor data from the Consumer Financial Decisions (CFD CFD - Computational Fluid Dynamics ) group of SRI Consulting Business Intelligence (SRIC-BI), outstanding credit-card debt has increased by 177% for households with annual incomes of $75,000 or more. A 9 October 2002 Wall Street Journal article, "Debt Problems Hit Even the Wealthy," explored the growth in debt during the past decade among these households. What this article did not describe is the increase in specific types of debt instruments. The MacroMonitor data show that the incidence among wealthy households of having a first mortgage has remained static from 1992 through 2000. However, the incidences of the next three most common types of debt--credit cards (34% to 58%), vehicle loans (33% to 51%), and secondary debt on the primary home (29% to 36%)--have all increased significantly. The lion's share of this debt is the mortgage on the primary home, which has grown by 37% from an average of $61,590 to $84,143 for all affluent households. And although the mean amount that the affluent owe in secondary debt (second mortgages and home equity lines of credit) on the primary home has gone up only 14%, vehicle loans have increased by 133% (from $3,910 to $9,097), and credit-card outstanding debt has increased by 177% (from $1,240 to $3,437)! About Consumer Financial Decisions (CFD) CFD (http://www.sric-bi.com/cfd) provides strategic insight and data services to support financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. marketing. Deliverables include reports, briefings, and data sets. About SRI Consulting Business Intelligence (SRIC-BI) SRIC-BI (http://www.sric-bi.com/) believes that capturing business opportunities requires exploring the big picture and then focusing on actionable strategies in an uncertain environment. Our research identifies the defining forces of change to help our clients expand their perspective. Our expertise and unique tools enable our clients to focus on strategies for action. Teaming with SRIC-BI increases our clients' ability to capture opportunities. An employee-owned spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. of the former Stanford Research Institute Stanford Research Institute - Former name of SRI International. , SRIC-BI taps into a history of technology innovation that nurtured the computer mouse and the Internet. We combine content-based research programs with consulting expertise. And we bring an optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op view of opportunity coupled with a realistic view of the difference between hype and reality. Note: A photo is available at URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. : http://www.businesswire.com/cgi-bin/photo.cgi?pw.102302/bb3 |
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