Consumer Debt Trend Over Past Two Years

National and statewide results for the study can be found on Experian's National Score Index(R) Web site at http://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   
                                2004        2005       2006       
    Average debt*,**          $10,371     $11,261    $11,669 
    Average monthly payment*     $489        $506       $538 
    Average number of late
     payments                    0.78        0.88       0.93 
    Average number of credit
     inquiries                   2.59        2.43       2.33
    Average number of open
     credit cards                3.17        3.12       3.11

* Does not include mortgage loan balance or monthly mortgage payment

** Debt consists of both revolving and installment credit