Blog sponsored by Bankrupt-Law.com


Wednesday May 24

Study Shows Consumers Have Increased Their Debt By More Than 12 Percent
Since 2004

IRVINE, Calif., May 24 /PRNewswire/ -- Experian Consumer Direct, a leading
provider of online direct-to-consumer credit reports, scores and monitoring,
today announced the results of a nationwide study on consumer debt that
shows consumers have increased their debt by more than 12 percent over the
past two years. Minimum monthly payment obligations also increased by 10
percent during the same time period. National and statewide results for the
study can be found on Experian's National Score Index® Web site at
www.NationalScoreIndex.com.
"In addition to consumers taking on substantially more debt over the past
two years, their number of late payments increased nearly 20 percent," said
Ty Taylor, president of Experian Consumer Direct. "This shows that as
consumers took on more financial responsibility, they were not able to
manage it effectively. However, on a positive note, our study also revealed
that during the same time period, each year consumers applied for credit
less often and opened fewer credit cards."

It is important for consumers to understand how increases in debt can
impact a credit score. While carrying debt is not necessarily negative on
its
own, having balances which are close to credit limits can potentially lower
a
credit score. In addition, high debt levels combined with late payments can
be a red flag for some lenders. By understanding how credit scores consider
these elements, consumers can empower themselves to make more educated
decisions when it comes to managing their debt and their credit. Overall
the
study results include:



February February February Percent
change
2004 2005 2006 2004 to
2006
Average debt*,** $10,371 $11,261 $11,669 12.5 %
Average monthly payment* $489 $506 $538 10 %
Average number of late
payments 0.78 0.88 0.93 19.2 %
Average number of credit
inquiries 2.59 2.43 2.33 -10 %
Average number of open
credit cards 3.17 3.12 3.11 -1.9 %


* Does not include mortgage loan balance or monthly mortgage payment
** Debt consists of both revolving and installment credit


Experian empowers consumers by offering products and information to help
them proactively manage their personal finances conveniently and securely
online. Products include credit reports from all three national credit
reporting companies, credit score reports that show the positive and
negative factors that determine their credit score, and credit monitoring
products that provide daily monitoring of their Experian credit report or
all three national credit reports.
More information about the Experian study plus additional credit data at the
state and local levels, can be found on Experian's National Score Index Web
site at www.NationalScoreIndex.com.

About Experian's National Score Index
Experian's study was compiled using the National Score Index, which is based
upon a nationwide sampling of 3 million consumer credit profiles. Experian's
National Score Index Web site is updated monthly with the most recent
Experian data regarding U.S. consumers' credit and is a powerful indicator
of the nation's overall financial health. In addition to average credit
scores for the nation, regions, states and local areas, the National Score
Index monitors several other components of consumer credit behavior,
including average debt, credit utilization, late payments and credit
inquiries.

About Experian Consumer Direct
Experian Consumer Direct is part of Experian Interactive(SM) and a market
leader for online credit reports, scores and monitoring products delivered
directly to consumers over the Internet. Among its products, the business
provides consumers with instant access to their credit report and credit
score, plus credit monitoring products that monitor all three national
credit reports daily and include identity theft insurance and fraud
resolution. Experian Consumer Direct has established integrated, co-branded
partnerships with leading online financial destinations that provide
consumers with a broad range of comprehensive online financial products and
information essential to managing one's financial life. For more
information, visit www.experian.com.