Title: CredAbility Consumer Distress Index for Cincinnati-Middletown, OH-KY-IN (MSA) Series ID: CCDIOA17140Q156N Source: CredAbility Nonprofit Credit Counseling & Education Release: CredAbility Consumer Distress Index (Not a Press Release) Seasonal Adjustment: Not Seasonally Adjusted Frequency: Quarterly Units: Percent Date Range: 2005-01-01 to 2013-01-01 Last Updated: 2013-05-17 2:01 PM CDT Notes: Overview of the Index The Index is a quarterly comprehensive picture of the average American household’s financial condition. Built by assessing the key elements of financial health and distress, it converts a complex set of factors into a single, easy to understand number. Scope and History The index measures the U.S., all 50 states and more than 70 MSAs. The national and state versions date back to 1980 and the MSA versions date back to 1990. Public Data and Proprietary Methodology We use more than 65 data points from government, public and private data and a proprietary methodology for compiling, combining and evaluating data. With nearly 50 years of experience and insight into helping consumers in financial distress, we know the biggest causes of distress, how people react to financial challenges and proven strategies for regaining control. (Note: Our client data is not a data source for the Index) Measured on a 100 Point Scale Financial distress is measured on a 100 point scale and a score under 70 indicates financial distress. The lower the score equals more distress, a weaker financial position, more urgency to act, takes longer and is harder to resolve, and increases the probability of needing a third party help to resolve. The Index score is tied to one of 5 general rating categories, which reflect the strength and stability of the consumer’s position. Less than 60 Emergency / Crisis 60 – 69 Distressed / Unstable 70 – 79 Weakening / At-Risk 80 – 89 Good / Stable 90 and Above Excellent / Secure What Does the Index Measure? We measure the 5 categories of personal finance that reflect or lead to a secure, stable financial life—Employment, Housing, Credit, Household Budget and Net Worth. All are equally important, so have given each category equal weighting. Employment. Stable income is the foundation of any family’s finances. This category measures the impact of unemployment and underemployment on financial health. Key Measures: Unemployment, Underemployment Sample Data Source: Department of Labor, Bureau of Labor Statistics Housing. Safe, affordable housing is a priority for all families. This category measures how consumers are paying their mortgage/rent and the impact of housing costs on their finances. Key Measures: Mortgage and Rental Delinquencies, Housing as Percent of Budget Sample Data Source: National Delinquency Survey Credit. Responsible use of credit creates more borrowing options and lower costs. This category assesses the strength of credit scores and how well families manage their credit. Key Measures: Credit Scores, Trade Line Utilization, Credit Delinquencies, Per Capita Bankruptcies Sample Data Source: National Credit Bureau Household Budget. Spending less than you make is the daily choice that leads to long-term success. This category measures families’ spending patterns and saving for emergencies. Key Measures: Disposable Income, Savings, Consumer Confidence Sample Data Source: Department of Commerce, Bureau of Economic Analysis Net Worth. Strong, positive net worth creates options and independence. This category measures how well consumers are strengthening their personal balance sheets. Key Measures: Household Net Worth, Net Worth versus Funds Required for Long-Term Needs (e.g. retirement) Sample Data Source: Federal Reserve Flow of Funds, Survey of Consumer Finances DATE VALUE 2005-01-01 74.074123138155 2005-04-01 75.285660742987 2005-07-01 73.747092249664 2005-10-01 73.955148476333 2006-01-01 76.540079885287 2006-04-01 76.868478350569 2006-07-01 75.781907426556 2006-10-01 79.043767160718 2007-01-01 77.440492535320 2007-04-01 78.899090132546 2007-07-01 75.721112688405 2007-10-01 75.266929228648 2008-01-01 73.318459345745 2008-04-01 74.331411142642 2008-07-01 72.351345773042 2008-10-01 72.780073143830 2009-01-01 65.602313955283 2009-04-01 69.585473943878 2009-07-01 66.354824530409 2009-10-01 65.886646972868 2010-01-01 66.790741572540 2010-04-01 67.028555685090 2010-07-01 66.365164505456 2010-10-01 67.669471308159 2011-01-01 68.181667355648 2011-04-01 67.906436983268 2011-07-01 65.989522020838 2011-10-01 66.085271727941 2012-01-01 67.659140142966 2012-04-01 69.929490033757 2012-07-01 69.315390000000 2012-10-01 71.612408690999 2013-01-01 69.813041052596