"More than two-thirds of Utahns that had filed for bankruptcy identified a job loss, business failure, health problem or divorce as the primary cause of bankruptcy," the report noted. "Only 14 percent mentioned overspending and/or credit card abuse as the cause."

At one bankruptcy filing per 39.5 households in 2005, the Beehive State ranks No. 3 nationally in households per filing, according to the American Bankruptcy Institute. For three straight years — 2002 to 2004 — Utah ranked No. 1 in the U.S. in households per consumer filing.

Sheila Walsh-McDonald, a health care advocate for the Salt Lake Community Action Program, which works with low-income households, said the state's larger family size makes it difficult for middle-class families.

"If you're a family of six or seven, to meet those basic needs, I think you're struggling," Walsh-McDonald said. "I think you're making daily choices as to whether you can afford health insurance. I think people are making daily choices as to what benefits they can afford and what savings they really can make. I think many middle-income families — as well as many families in poverty — are living paycheck to paycheck."

The report offers a number of recommendations to increase family financial stability, including the formation of a "financial security council" made up of business, religious and public sector leaders committed to developing solutions.

In addition, the report urges establishing a state earned income tax credit. More than 20 states offer such a credit. A federal credit is available for households earning less than $38,000 a year, reducing their tax burden. The report estimates that a state EITC could help as many as 130,000 Utah households.

---

E-mail: danderton@desnews.com