Creditors continue to tighten credit lines throughout 2009, says Equifax
Thursday, December 24, 2009 11:07 PM
A newly issued study from Equifax has found that creditors are beginning to shy away from consumers who may have previously dealt with credit counseling services as a way to climb out of debt, reductions of credit lines have led to a decline in new card issuances in recent years.Accordingto the study, which was released on Tuesday, creditors have developed a trend of reducing their lines of credit since instituting card risk management programs in July 2008. In that time, Equifax reported that card credit accounts had declined by 93 million while lines of credit had decreased by $803 billion
Equifax also found that the 2.4 million bank cards that had been opened in September was 45 percent lower from one year earlier.
"The story of 2009 continues to be one of consumer retrenchment and credit tightness as people strive to pay down debt or are forced to abandon it, and lenders more aggressively manage risk in their portfolios," said Dann Adams, president of Equifax's U.S. Consumer Information Solutions.
The survey also found that delinquency rates for credit cards saw a significant jump over figures taken at the end of 2008. In November 2009, the 60-day delinquency rate for cards stood at 4.62 percent, well above the 3.76 percent rate recorded in November 2008
Recent News Articles
- Mortgage applications survey finds that fewer consumers willing to incur housing-related debt
- Government moves to broaden options for legitimate debt resolution options, stop scammers
- Revolving consumer credit falls, but overall numbers are up
- Report: Consumer attempts to reduce debt could be hampering economic recovery
- Report: Treasury Secretary warns world leaders that U.S. consumers look to reduce debt
Debt News Categories
About Debtmerica
Debtmerica is a leading debt settlement company that offers assistance to individuals and families who are experiencing financial difficulties and hardship.
We specialize in negotiated debt settlement to assist clients by reducing debt balances while providing an affordable monthly payment.
Our professional and knowledgeable staff has helped thousands of consumers get back on their feet financially.
Achievements
|
Debtmerica has had one vision since inception - to help Americans nationwide attain financial independence. At Debtmerica, we're proud of our achievements and honors. They represent our commitment to our vision and clients. |
|
|
|
|
A Secure & Trusted Site
|
Debtmerica is committed to providing a safe and secure site that you can trust. |
 |
|
 |