Debt Study - Quick Facts

The 2009 Survey of Financial Values and Debt, sponsored by Securian Financial Group, shows that saving for emergencies is among Americans’ top financial priorities. And while respondents have found many ways to spend less, they are not reducing their debt. Here are more highlights from the research.

Distribution
Generation Y	(born 1981 – 1987)	176
Generation X	(born 1965 – 1980)	303
Baby Boomers	(born 1946 – 1964)	415
Silent Generation	(born 1934 – 1945)	310
Total surveyed		1,204

Key findings

Respondents of all ages are now (12%) more likely than they were in 2007 (9%) to say that saving for emergencies is their most important financial goal.
Consumers are significantly less likely to take on debt to buy cars (-6%), gifts (-7%), home improvements (-4%), vacations (-6%) or meals out (-5%).
81% of respondents are proud of the ways they have cut spending.
The percentage of respondents who view debt as a normal part of their lifestyles declined from 23% in 2007 to 18% this year; among Baby Boomers the percentage dropped nine points.
Generation Y (61%) and the Silent Generation (59%) are significantly more likely than Generation X (47%) or Baby Boomers (47%) to say that debt should be avoided if possible.
Although respondents expressed more cautious attitudes toward debt, the overall dollar amount of debt is virtually unchanged since 2007, and eight out of 10 respondents are carrying non-mortgage debt. The exception is Baby Boomers, who have added debt since 2007.
Less than one quarter (22%) of survey respondents applied for non-mortgage credit in the last 12 months; of those who did, 42% were denied.
Those who claimed to have paid down more debt than they added dropped five points from 2007 (40%) to this year (35%).
55% are contributing as much to their retirement savings as they did in 2007; 27% are contributing more and 17% are contributing less.

Consumers cut back
Consumers are less likely to spend as much as they did a year ago. Here are the top 15 ways respondents to Securian’s Survey of Financial Values and Debt are cutting back or trying to raise cash during the downturn:

15.	Pawning items	5%
14.	Trading to obtain goods, instead of buying	13%
13.	Borrowing or sharing items, rather than buying	20%
12.	Selling items online or in yard sales	20%
11.	Entertaining less at home	26%
10.	Delaying routine services	26%
9.	Buying second-hand items	28%
8.	Buying less brewed coffee and tea	29%
7.	Mending or reusing items instead of discarding them	41%
6.	Traveling less and taking fewer vacations	51%
5.	Generating additional income	53%
4.	Buying less new clothing	58%
3.	Dining out less often	62%
2.	Saving on fuel for home and car	64%
1.	Finding ways to save on groceries	68%

Securian Financial Group helps provide financial security for individuals and businesses in the form of insurance, retirement products and services, and investments. Affiliates include Minnesota Life Insurance Co., Advantus Capital Management, and Allied Solutions, LLC. Securian has nearly $780 billion of life insurance in force, $24 billion in assets under management as of March 30, 2009 and a nationwide work force of 3,500 employees. Securian serves more than 9,000,000 individuals in the U.S.

Editor's Note: For a full copy of the survey or to request interviews with Kerry Geurkink or Mathew Greenwald, contact Group Leaf Public Relations at 715-381-0123 or cathy_leaf@groupleaf.com.

Contact

Group Leaf Public Relations
cathy_leaf@groupleaf.com
715-381-0123

Insurance products are issued by Minnesota Life Insurance Company in all states except New York. In New York, products are issued by Securian Life Insurance Company, a New York admitted insurer. Both companies are headquartered in Saint Paul, MN. Product availability and features may vary by state. Each insurer is solely responsible for the financial obligations under the policies or contracts it issues.

Last updated: Thursday, July 16, 2009 3:57 PM