SOURCE: Credit Karma

Credit Karma

August 12, 2009 06:00 ET

Consumer Debt Decreases in July

Credit Scores Remain Stable Nationwide as Consumers Pay Off Their Debts, According to Credit Karma's Unique Trend Data

SAN FRANCISCO, CA--(Marketwire - August 12, 2009) - Credit Karma (www.creditkarma.com), the consumer's advocate for demystifying credit, today released its U.S. Credit Score Climate Report with trend data for July 2009. For the fourth straight month, credit scores continue to level off and remain stable for many consumers. 37% of consumer credit scores have increased, 28% have decreased, and 35% remained the same. The current average U.S. consumer credit score is 673.

In addition, consumer debt has decreased. Amongst consumers with a credit card account, credit card debt continued to decrease by $120 in July. Consumers also continue to pay down home mortgage loans, student loans and auto loans. In July, the average consumer with an open account had:

--  $6,818 in credit card debt
--  $193,036 in home mortgage loans
--  $52,559 in home equity loans
--  $14,449 in auto loans
--  $26,368 in student loans
    

Here are some other key findings:

--  Those over 65 have the most stable credit scores with 48% seeing no
    change in their credit score since June, while 29% saw an increase and 23%
    saw their credit scores decrease.
    
--  For the second straight month, the South region had the highest
    percentage of increasing credit scores, followed closely by the Northeast.
    In July, 38% of consumers in the South saw their credit scores increase,
    29% of credit scores decreased, and 33% of credit scores stayed the same.
    
--  In terms of overall debt, Midwest consumers have the lowest amount of
    debt for the third straight month. On average Midwest consumers have $6,531
    in credit card debt, $147,557 in home mortgage loans, $13,018 in auto
    loans, and $25,645 in student loans.
    
--  Pennsylvania saw the highest percentage of increasing credit scores
    during June. 41% of Pennsylvania consumers had their credit score increase,
    28% of credit scores decreased, and 31% stayed the same.
    

Methodology

Each month, the Credit Karma U.S. Consumer Credit Score Climate Report compares the current credit scores of its user base with previous scores pulled at least 30 days prior and no more than 90 days prior to the stated month. This month's report includes a comparison of more than 52,000 Credit Karma user scores.

About Credit Karma

Credit Karma, the consumer's advocate for demystifying credit, is the only Web site that provides consumers free access to their credit score, plus a range of tools and information resources to help them monitor and manage the credit aspect of their financial health. Credit Karma's goal is to help consumers easily digest the contents of their credit report and understand what makes up their credit score. Credit Karma works with a range of partners, including mortgage lenders, credit card providers, banks, and wireless providers. For more information, visit www.creditkarma.com.

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