Report: American consumers remain distressed

Many Americans might be reluctant to relocate any time soon because of their financial situation.

In the second quarter, the strain of low employment and high housing costs created a growing number of distressed consumers, reported CredAbility. American households scored a 65.2 on the company's Consumer Distress Index, which operates on a 100-point scale. That score was up slightly from the first quarter's 65.0. Scores below 70 indicate a state of distress.

Financial instability might cause some consumers to delay moving plans until they're more confident in their finances. But despite elevated levels of consumer stress, the report showed that the average American's net worth has increased for five straight quarters, as more people get better at handling their debt.

"The modest improvements we see in housing and net worth show incremental, but positive signs of stabilization," said Mark Cole, CredAbility's chief operating officer, of the report. "But to use a medical analogy, the patient is still in critical condition."

The states with some of the worst scores were also the ones facing that country's toughest financial difficulties - Nevada, Florida and Michigan, among others. Those states' bottom-of-the-barrel employment scores, according to Portfolio.com's mid-year employment ranks, might also deter moving activity.


More News