Almost one third of Americans (31%) feel insecure about their jobs, and that insecurity is causing a third of them to reduce their use of credit, according to the Cambridge Consumer Credit Index. Nearly half of Americans (46%) feel very secure about their jobs, while 8% report being unemployed and 16% are retired.

One third of Americans (33%) have decreased their use of credit or their willingness to take on new debt because of their feelings of job insecurity. Only 9% say they are more willing to take on debt because of their feelings of job security. More than half of Americans (57%) say their current employment situation is having no impact on their credit usage. By gender, more men (48%) felt secure about their jobs than women (43%). Predictably, those with the highest incomes of over $75,000 a year feel the most secure about their jobs (63%), while only 26% of those earning under $25,000 a year feel secure in their jobs.

"Even though the official unemployment rate is 6.1%, the percentage of Americans who feel threatened by the possibility of a layoff (33%) is clearly much greater. This fear is causing many Americans to hold back on their use of their credit cards and dampening their willingness to take on more debt, which is restraining economic growth to some extent. If the economic growth being reported by gains in the Gross Domestic Product start translating into more news of job gains instead of layoffs, this fear may abate and consumers might start to spend more freely again," says Jordan Goodman, spokesperson for the Index.

These findings are the result of monthly nationwide telephone poll of 1000+ adults conducted by ICR/International Communications Research in the past week, sponsored by the Debt Relief Clearinghouse.

The overall Cambridge Consumer Credit Index fell by 3 points in October to 58. The Index was unchanged in the "last month" question, up 2 points in the "next month" question and down a sharp 10 points in the "next six month" question. The "Reality Gap," which is the difference between the amount of debt consumers say they will pay off in the next month versus the amount of debt they actually paid off a month later, rose slightly to 15 percentage points from 14 points in September. A month ago, 82% of Americans planned to pay off debt, while a month later 67% actually did so.

The Cambridge Consumer Credit Index is a forward looking economic indicator gauging consumer spending and debt. It is released on the fifth business day of every month to coincide with the Federal Reserve Board's G19 release of consumer credit outstanding data.

In conjunction with the Index, the Cambridge Credit Counseling Corp. is releasing its monthly survey of people who have called in for credit counseling services over the past month. Cambridge representatives ask callers for the primary reason that they found it necessary to get help with their debts now. Of the 891 people who answered, this was the order of their responses:

1. I am frustrated with high bank rates and fees (33.8%)

2. My income has been reduced from a lower salary, less overtime or
   layoff (22.9%)

3. I want to improve my ability to achieve future financial goals like
   buying a house or saving for retirement (12.8%)

4. I got into too much debt by overspending (10.8%)

5. My lack of financial education caused me to take on too much debt
   (6.8%)

6. Other reasons (6.4%)

7. Large medical expenses forced me to take on huge debts (4.4%)

8. My recent divorce or widowhood forced me to take on large debts (2.0%)

The Cambridge Consumer Credit Index number is a composite of these three questions:

1. In the past month, have you taken on more debt or paid off debt? The Index reads 66 on this question, unchanged from September.

In October, 33% of Americans say they have taken on more debt, with 21% taking on a little and 12% taking on a lot more debt. Conversely, 67% of Americans have paid off debt, with 46% paying off a little and 21% paying off a lot.

2. In the next month, do you anticipate taking on more debt or paying off debt?

The Index reads 38 on this question, an increase of two points from September.

In October, 19% plan to take on more debt, with 5% planning to take on a lot and 14% planning to take on a little debt. Conversely, 81% plan to pay off debt, with 66% paying off a little and 15% paying off a lot. In September, 18% planned to take on debt and 82% planned to pay off debt.

3. In the next six months, do you expect to take on debt because you are thinking of making a major purchase such as a car, education, appliance, medical procedure, furniture or carpeting?

The Index reads 70 on this question, a drop of ten points from September.

In October, 34% of Americans plan to take on more debt to make such purchases, with 9% taking on a lot of debt and 25% taking on a little more debt. In contrast, 65% of Americans plan to pay off debt in the next six months, with 51% expecting to pay off a little and 14% expecting to pay off a lot. In September, 40% of Americans planned to take on more debt, while 60% planned to pay off debt.

"The 10-point drop in intentions to take on more debt over to make major purchases over the next 6 months shows that consumers are becoming increasingly cautious. The Cambridge survey is finding similar results to the recent drops reported in consumer confidence surveys by the Conference Board and University of Michigan," says Jordan Goodman, spokesperson for the Index.