Debt Settlement USA, a leading debt settlement company, today reported that the

Consumer Debt  Index (CDI) stood at 12.66 at the end of the second quarter 2008, up 7.3

factors for American consumers who are suffering under an increasing burden of credit card, car

payment, mortgage, and other debt. It is comprised of the Consumer Price Index (CPI), consumer

credit outstandings, the mortgage delinquency rate, and the unsecured loan delinquency rate.

The second quarter rise of the CDI was driven largely by American’s soaring mortgage

delinquency rate and consumer loan delinquency rate, which includes non-secured loans such as

credit cards. Additionally, the CPI spiked slightly after climbing steadily but mildly over the past

year.

The second quarter mortgage delinquency rate of 4.33 – 99 percent higher than a year ago –

experienced its largest quarterly increase since 2007. Aside from the mortgage delinquency rate,

outstanding consumer credit grew by more than $31 billion in the second quarter 2008, and

nearly $137 billion since 2007. The consumer loan delinquency rate also increased during that

same period by 23 percent to 3.57. Energy and food prices forced the CPI, an indicator widely

used to measure inflation and price changes in the U.S. economy, up by 2.2 percent during the

past quarter and 4.3 percent in the past year.

“American consumers continue to suffer under a stagnant economy, slumping housing market,

and higher energy and food prices,” said Jack Craven, President of Debt Settlement USA. “The

Consumer Debt Index gives an accurate snapshot of the challenges facing consumers as they

struggle to make ends meet while also trying to stay out of debt. As the numbers in the most

recent CDI show, it is getting harder and harder for many Americans to financially keep their

heads above water.”