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If Trends Continue, 2011 Could Be Good for the Credit World

December 29, 2010

mortgages and credit debtThe

Equifax Personal Finance Blog recently reported positive trends in consumer debt and delinquency rates – trends that could mean it will be easier to borrow money in 2011. A recent article written by the Equifax credit experts,

2010 Postmortem Credit Trends, shows that American consumers are doing a better job of paying their bills on time, and they’re taking on less debt. This could make lenders more eager to loosen the purse strings again.

The article reports that mortgage delinquency rates declined by 8 percent from October 2009 to October 2010, and home equity line of credit (HELOC) delinquency rates fell by 10 percent during the same time period. Meanwhile, credit card and auto loan delinquencies plummeted 24 percent.

At the same time, consumers have not continued to take on more debt. From October 2007 through October 2010, total consumer debt fell from $11.1 trillion to $10.6 trillion.

While things look good in many ways, the experts point out that mortgage and HELOC delinquency rates are still at extremely high levels, and personal bankruptcy filings actually increased in 2010.

So what does all of this mean for the average Chicago homeowner? According to the

Equifax Personal Finance Blog, lenders are likely to start looking for ways to grow their portfolios again, now that they don’t have to focus as much on risk management. For consumers with good credit histories and even some subprime borrowers, it could be easier to get a HELOC or primary mortgage in 2011.

So what will you do? Is it time to start borrowing money again, perhaps to invest in your Chicago home? Visit the

Equifax Personal Finance Blog for the full report, then let us hear your opinion!

Categories: Economy

About The Author

Read All Stories By Carol Morgan

Carol Flammer is a public relations and social media marketing expert, strategist and consultant. With 20 years of experience, Carol has established herself as the “go to” for real estate and construction products public relations and social media. Carol is president of Flammer Relations, Inc., and managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Atlanta and Chicago.

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