ATLANTA, Nov. 17, 2010 /PRNewswire-HISPANIC PR WIRE/ —
CredAbility, one of the leading nonprofit credit counseling and education
agencies in the United States, today released the CredAbility Consumer Distress
Index results for the 2010 third quarter. The Index, a quarterly measure that
tracks the financial condition of the average U.S. household, found that the
incremental improvements in consumer financial health in the first half of 2010
have been reversed due to weaker household budgets, renewed strains on housing
costs and continued high levels of unemployment.

For the quarter ended September 30, 2010, American households
scored a 64.4 on the Index’s 100-point scale, down from 65.2 in the second
quarter of 2010.  A score below 70
indicates a state of financial distress. 
The average U.S. consumer has been in financial distress for nine consecutive
quarters, according to the Index.

Index scores fell in 41 states during the recent quarter,
underscoring the depth and breadth of consumer financial distress that
continues to grip the nation. The average consumer in all but six states is in
distress.  On a more positive note,
Index data shows consumers’ net worth remains stable and while the savings rate
slipped slightly, consumers continued to pay down debt, indicating that an
uptick in household spending in the third quarter was made with current funds
instead of borrowed money. 

The third quarter 2010 data again reveals stark regional
differences.  Only six states, mainly in
the Great Plains and New England, achieved scores above the distress threshold
of 70 points, down from nine states in the second quarter.  Two states scored below a 60, a threshold
that indicates the average consumer is in financial crisis.

Michigan posted the worst score on the Index with a 58.11,
replacing Nevada as the state with the highest level of consumer financial
distress.  Mississippi ranked second
with a 58.76. North Dakota again had the best performance, improving its score
to 79.45. To see a detailed explanation of how the Index works and a national
map, go to www.CredAbility.org/ConsumerDistressIndex. A link to the Index will
also be posted on the CredAbility Twitter account, which can be found at twitter.com/CredAbility.

“The third quarter was a mix of bad and good news,” said
Mark Cole, CredAbility’s chief operating officer and executive responsible for
the CredAbility Consumer Distress Index. 
“Consumers continue to clean up their balance sheets, mortgage
delinquencies appear to be stabilizing and credit scores remain reasonably
good.  The uptick in spending, which has
been largely focused on necessities, such as back-to-school, is being paid for
with current funds, not borrowing.  
Mortgage refinancing is putting more cash in consumers’ pockets.
However, the vast majority of Americans remain in financial distress, with a
growing number in crisis.  Unemployment
and housing remain stubbornly weak and until this improves, the American
consumer will likely continue to experience financial anguish.”

Cole added: “One big change this quarter is the sharp
increase in delinquent payments by renters, who comprise just under one-third
of the U.S. housing population.”

Highlights from the third quarter Index include:

 — The five states with
the lowest Index scores were Michigan (58.11), Mississippi (58.76) South
Carolina (60.10), Alabama (60.23) and Indiana (60.68).  Each faces acute challenges in employment
and housing markets, which weigh heavily on their overall scores.

 — Two states – Michigan
and Mississippi – are now under 60, with Michigan replacing Nevada as the most
distressed state.

 — Among the most
distressed states, Indiana moved from No. 12 to No. 5 and Ohio from No. 13 to
No. 8.

 — Alabama and Louisiana,
which were likely affected by the Deepwater Horizon Gulf oil spill, also moved
up in the distress index. Alabama moved from No. 8 to No. 4 and Louisiana moved
from No. 29 to No. 22 most distressed. 

 — Florida’s position in
the rankings improved from No. 3 to No. 7 most distressed and California moved
from No. 7 to No. 10, although both states are still among the most financially
distressed in the country.  

 — Forty-four states and
the District of Columbia continued to score at levels that indicate distress,
up from 41 in the second quarter of 2010.

 — The dip in the housing
portion of the index was driven by an increase in delinquent payments by
renters, with these delinquencies rising by 9 percent over the second quarter
of 2010.

 — The Index shows that
underemployment increased, with approximately 100,000 people moving from
full-time to part-time employment.   

 — Only six states, led by
North Dakota (79.45) and South Dakota (76.19), scored above the distress
threshold of 70 points.  Others were
Nebraska (74.87), New Hampshire (72.77), Wyoming (72.54) and Vermont (70.88).

Third quarter Index data by state:

                      
 Q3 2010   
Q2 2010    Q1 2010    Q4 2009   
Q3 2009

National                 64.40%     65.23%     65.04%     63.96%     65.23%

States

Michigan                 58.11%     61.01%     60.69%     60.47%     61.27%

Mississippi              58.76%     60.62%     60.57%     60.69%     61.53%

South
Carolina           60.10%     61.29%     60.63%     60.09%     60.88%

Alabama                  60.23%     61.89%     61.60%     61.46%     62.25%

Indiana                  60.68%     62.61%     62.27%     61.74%     62.32%

Nevada                   60.71%     59.23%     59.16%     59.56%     60.57%

Florida                  60.81%     61.01%     60.70%     60.48%     61.37%

Ohio                     60.83%     63.06%     62.60%     62.18%     63.08%

Georgia                  61.24%     61.37%     61.24%     61.13%     62.04%

California               61.31%     61.71%     61.36%     61.29%     62.33%

Tennessee                61.54%     62.26%     61.72%     60.97%     61.70%

North
Carolina           61.66%     62.28%     62.11%     61.53%     62.46%

Kentucky                 61.72%     63.38%     62.83%     62.03%     62.81%

Missouri                 62.43%     64.62%     64.37%     63.97%     64.85%

Rhode
Island             62.57%     63.70%     63.33%     63.20%     64.15%

Illinois                 63.01%     64.66%     64.45%     64.43%     65.33%

West
Virginia            63.22%     64.50%     64.11%     63.39%     64.27%

Arkansas                 63.94%     65.73%     65.24%     64.54%     65.50%

Arizona                  63.98%     62.05%     61.75%     61.62%     62.41%

Maine                    64.29%     66.04%     65.78%     65.46%     66.55%

Washington               64.88%     65.60%     65.59%     65.71%     67.06%

Louisiana                65.07%     67.64%     68.13%     68.59%     69.43%

Pennsylvania             65.23%     66.99%     66.92%     66.61%    
67.59%

New
Mexico               65.35%     65.72%     65.64%     65.42%     66.58%

Hawaii                   65.51%     68.65%     67.96%     67.84%     69.11%

Delaware                 65.53%    
66.96%     66.34%     66.00%     66.92%

Oregon                   65.88%     64.66%     64.29%     63.72%     64.58%

Wisconsin                66.27%     68.05%     67.48%     66.59%     67.59%

New
Jersey               66.44%     67.67%     67.42%     67.40%     68.41%

Texas                    66.48%     65.89%     65.82%     65.36%     66.27%

New
York                 66.61%     67.79%     67.45%     67.35%     68.43%

Oklahoma                 66.88%     68.63%     69.02%     69.10%     70.05%

Idaho                    67.28%     65.11%     64.51%     64.48%     65.51%

Alaska                   67.31%     70.70%     70.68%     70.70%     70.92%

Maryland                 67.58%     68.94%     68.94%     68.89%     69.94%

Connecticut              68.20%     69.23%     69.04%     68.96%     70.10%

Colorado                 68.23%     68.34%     68.31%     68.15%     68.91%

Kansas                   68.41%     70.26%     69.79%     69.29%     70.12%

Virginia                 68.50%     69.30%     69.16%     69.21%     70.14%

District
of Columbia     68.55%     64.64%     66.07%     65.72%     66.36%

Utah                     68.58%     67.65%     67.79%     68.15%     69.02%

Massachusetts            68.96%     68.37%     68.18%     68.08%    
68.98%

Montana                  69.28%     69.51%     69.99%     69.75%     70.96%

Minnesota                69.30%     69.75%     69.01%     68.14%     68.87%

Iowa                     69.91%     71.40%     70.97%     69.98%     71.08%

Vermont                  70.88%     72.05%     71.63%     71.07%     72.30%

Wyoming                  72.54%     72.80%     72.83%     72.76%     73.82%

New
Hampshire            72.77%     70.64%     69.26%     69.07%     70.16%

Nebraska                 74.87%     76.09%     75.47%     74.20%    
75.31%

South
Dakota             76.19%     77.43%     77.21%     75.62%     76.91%

North
Dakota             79.45%     78.95%     78.89%     79.25%     79.83%

About the CredAbility Consumer Distress Index

Published quarterly, the CredAbility Consumer Distress Index uses
a proprietary methodology that draws upon multiple data sets. Employment,
housing, credit, household budget and net worth information is supplemented
with data collected by CredAbility, which serves more than 750,000 financially
distressed individuals each year.

About CredAbility

CredAbility is one of the leading nonprofit credit counseling and
education agencies in the United States, serving clients in all 50 states plus
the District of Columbia, Guam, Puerto Rico and the US Virgin Islands, in both
English and Spanish. In addition to providing counseling via telephone and
internet, CredAbility operates a network of 31 branch offices across the
southeast.

Founded in 1964, CredAbility is a family of Consumer Credit
Counseling Service agencies that includes CCCS of Greater Atlanta, CCCS of
Central Florida and the Florida Gulf Coast, CCCS of Palm Beach County and the
Treasure Coast, CCCS of East Tennessee, CCCS of Jackson (Mississippi) and CCCS
of Upstate South Carolina.

The nonprofit agency is accredited by the Council on Accreditation
and is a member of the Better Business Bureau and the National Foundation for
Credit Counseling (NFCC). Governed by a community-based board of directors,
CredAbility is funded by creditors, clients, individual donors and grants from
foundations, businesses and government agencies. Service is provided 24/7 by
phone at 800.251.2227 and online at www.CredAbility.org.

SOURCE  CredAbility