Rising consumer prices and slumping home values are straining some Central Floridians, especially those with lower incomes and oversized mortgage payments.

People who until recently had counted on home-equity lines and other forms of credit to bridge the gap between stagnant incomes and higher prices for food, gas and other items are particularly vulnerable as lenders clamp down on underwriting standards.

For those with stock portfolios, high-paying jobs and manageable mortgages, the economy hasn't produced major hardships so far. But consumers with modest incomes and big debts are facing a major crunch.

Chris McCarty, who directs the University of Florida's monthly consumer-confidence survey, said a small increase in Floridians' confidence levels last month is likely to vanish in his March report, scheduled for release Tuesday. And while their expectations for personal finances and the U.S. economy improved a bit in February, their confidence in now being a good time to buy a big-ticket item such as a car or appliance fell to its lowest level since the 1990-91 recession.

"I don't think the Florida consumer is alone in wondering what to do next," he said. "But we had a bigger upside when housing prices were on the rise, so we have further to fall. That has an impact on people."

Tough times test Central Florida's financial fortitude - Orlando Sentinel - March 23, 2008