Scorning debt, consumers' credit scores soar

[steve2470]

http://www.reuters.com/article/idUSTRE67C4YM20100813

(Reuters) - Consumers have tightened their belts to the point where they could take on a lot more debt if they wanted it.

But they don't.

The average credit score rose to 704 in July, a level not seen since the first quarter of 1998, according to data that Equifax Inc (EFX.N), one of the largest U.S. credit bureaus, provided exclusively to Reuters.

That means lenders consider consumers to be improved credit risks and would be happy to have more of them as customers. Yet many consumers still seem to find debt too risky, said Dann Adams, an Equifax executive.

"Traditionally, what you see is after a recession is that consumers are the engine on the locomotive for economic growth," Adams said. "Now it looks like they're the caboose."

more at link above

[pipi_k]

1. OK, at first I wondered

how someone who "scorned debt" could have an improved credit score, but that's not the case.

It's not till near the middle/end of the article that it all makes sense.

People are scorning outstanding debt...not debt itself...

[Faryn Balyncd]

2. When the only lenders are sleazebag price-gougers, people learn to pay cash.

[Ruby the Liberal]

3. The author seems surprised. The "engine" only works when people have JOBS.