Survey Results

April 1, 2009 - Click each question to learn more about the topic.
Correct responses are in bold, where applicable.

1. If you put $5000 on a credit card, and you made the minimum monthly payment at 18 percent interest annually, how long would it take to pay off the debt?  Would you say . . .
   [READ LIST. RECORD ONE ANSWER]

• 2 years -  13%
• 6 years -  15%
• 15 years - 29%
• Or, 46 years - 29%
• DON’T KNOW/REFUSED - 13%                                
1. If you don’t have $100 for an unexpected car repair, which of the following options would be the MOST expensive?
   [READ ENTIRE LIST BEFORE RECORDING ONE ANSWER. RANDOMIZE]
   • Overdraw your checking account - 24%
   • Get a payday loan - 51%
   • Wire transfer from a relative - 16%
   • DON’T KNOW/REFUSED - 9%
2. What is the single MOST IMPORTANT factor when determining whether or not you can get a loan? Would you say . . .
   [READ ENTIRE LIST BEFORE RECORDING ONE ANSWER. RANDOMIZE]

• Your income -  17%
• Amount of debt -  15%
• Your FICO or credit score -  57%
• Whether or not you own a home -  6%
• DON’T KNOW/REFUSED - 5%

4. What is the Dow Jones Industrial Average?  Would you say . . .
   [READ ENTIRE LIST BEFORE RECORDING ONE ANSWER. RANDOMIZE]

• An index based on the stock prices of 30 large American corporations -  47%
• An index that averages the profitability of all America’s companies - 17%
• The average interest rate paid by banks for loans to each other - 7%
• An index that averages the price of commodities such as gold, corn, and sugar - 10%
• DON’T KNOW/REFUSED - 19%

5. What is the advantage of putting money in a traditional IRA? Would you say . . .
   [READ ENTIRE LIST BEFORE RECORDING ONE ANSWER. RANDOMIZE]

• You can use pre-tax dollars to invest for retirement -  48%
• There is a guaranteed return on your investment – 14%
• The FDIC insures the money in your IRA up to $100,000 – 12%
• It is less risky than investing in Treasury bills – 10%
• DON’T KNOW/REFUSED – 16%

6. Have you personally experienced less access to credit in the PAST 6 MONTHS? For example, have you had trouble getting a loan, had credit limits lowered, or been denied access to credit for any other reason?

1. YES - 19%
2. NO - 79%
3. DON’T KNOW/REFUSED - 2%

7. Have you, or someone you know lost their job in the PAST 6 MONTHS?

1. YES - 64%
2. NO - 35%
3. DON’T KNOW/REFUSED - 1%

8. If you have or are expecting a tax refund this year, what do you plan on doing with MOST of the money?
   [READ ENTIRE LIST BEFORE RECORDING ONE ANSWER. RANDOMIZE]

• Spend it on something that you want or is a treat - 11%
• Spend it on something that you need or is a necessity - 20%
• Put it towards paying off existing credit card debt - 18%
• Put it into savings - 29%
• OTHER [SPECIFY]
• NOT GETTING A REFUND - 14%
• DON’T KNOW/REFUSED - 2%

9. Are you saving more because of the economy?

1. YES - 40%
2. NO - 58%
3. DON’T KNOW/REFUSED - 1%

10. How long do you expect the recession to last?  Would you say . . .
    [READ LIST. RECORD ONE ANSWER]

1. The economy will be recovering by summer - 3%
2. The economy will start recovering late in the year - 16%
3. The economy will begin to recover this time next year - 23%
4. The economy won’t recover for 1 to 3 years - 41%
5. Or, the economy won’t recover for the foreseeable future - 12%
6. DON’T KNOW/REFUSED - 5%

This report presents the findings of a telephone survey conducted among a national probability sample of 1,002 adults comprising 500 men and 502 women 18 years of age and older, living in private households in the continental United States.  Interviewing for this survey was completed during the period March 20-23, 2009.  The margin of error is +/- 3%

© 2010 The Center for Economic and Entrepreneurial Literacy