Consumers Plan to Reduce Credit Card Debt in 2006

Other steps consumers are "very" or "somewhat likely" to take in 2006 include checking their credit score at one of the three major credit reporting companies (48 percent), cutting back on entertainment spending (45 percent), reading a book or taking a course on personal finances (36 percent), and, among consumers with credit cards, cutting down on the number of credit cards they have (35 percent).

About one in four consumers (23 percent) will make a New Year's resolution about improving their finances, although only 9 percent say they made the same resolution last year. Eighty-nine percent expect to keep their resolution, up slightly from the 82 percent who said they actually kept their resolution last year.

"The number of consumers planning to make their finances a priority this year, up 14 percent from last year, is a significant change," said Dennis Jacobe, chief economist for The Gallup Organization. "The past year was difficult for many consumers due to increases in daily costs, and the upcoming year looks as if it will continue the trend. Having the past year's experience behind them, consumers may be putting resolutions in place for the upcoming year to help prevent falling even more behind in their finances."

Few consumers are so strapped that they feel the need to consolidate their debt into one loan -- 10 percent say they are "very likely," and another 11 percent "somewhat likely," to do that. In this group, about one in four expects to take out a home-equity loan.

Overall, most consumers (77 percent) are comfortable with their level of debt, while 23 percent are uncomfortable, representing little change from last year. Many consumers (64 percent) are satisfied with their credit rating, while 34 percent say they plan to take steps to improve it. Still, more than one-quarter of consumers who want to improve their credit rating do not plan on checking their credit score.