Households Shed Debt in Face of Economic Uncertainty

Consumers Continue to Pay Down Debt

Bloomberg - July 3, 2011

The aver­age U.S. cred­it score rose to 696 in May, the high­est in at least four years. The ratio of con­sumer-debt pay­ments to incomes is the low­est since 1994, and delin­quen­cies have dropped 30 per­cent in two years. Improv­ing cred­it qual­i­ty gives house­holds the abil­i­ty to lift bor­row­ing as con­cerns ease about ris­ing gaso­line prices, hard-to-find jobs and falling home prices.