Consumers have become considerably more pessimistic about their ability to borrow money, according to a survey from Experian and The Gallup Organization.
According to the organizations’ most recent poll, the Personal Credit Index stood at 82, down from last month’s benchmark score of 100. The Personal Credit Index measures consumers’ perceptions of their credit status including four key areas related to credit: level of debt, monthly payment burden, credit rating, and debt extension capability.
“The drop in the Personal Credit Index suggests that rising interest rates are creating some concerns among consumers about their ability to continue borrowing money at good terms in the future,” said Ed Ojdana, group president of Experian Interactive, in a statement.
Ojdana continued, “Consumers may have good reason to feel this way since we have also seen a downward trend in consumer credit scores during recent months.”
The largest decline came from consumers’ increasingly negative feelings that six months from now they will be able to make their monthly payments and borrow money should they have the need.
Consumers under age 30 were the most pessimistic, followed by those between the ages of 30 and 49. Among the pre-retirement age group, 50-64, there was only a modest drop, while consumers 65 and older were slightly more optimistic than last month.
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