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Survey also uncovers consumer perceptions of the real estate market
According to the latest Experian-Gallup Personal Credit Index(SM) survey, 50 percent of consumers are uncomfortable making a major purchase such as a home, a car, major appliances or other significant items over the next three months.
In addition, consumer credit perceptions have been negatively impacted by the subprime mortgage market, the sharp increase in housing foreclosures and the recent surge in long-term interest rates.
Mortgage Market Attitudes
"Our survey showed that the highly publicized subprime mortgage market concern has resulted in some interesting opinions consumers have regarding how they view subprime mortgages and what should be done for those who have such loans should they face foreclosure," said Ty Taylor, president of Experian Consumer Direct(SM).
Additional noteworthy results on consumer attitudes toward the mortgage
market include:

  -- 58 percent believe the problems in the subprime mortgage market will
     affect the overall mortgage market, while 24 percent feel the problems
     will be contained
  -- 61 percent of consumers who are very familiar with subprime mortgage
     loans believe the problems in the subprime mortgage market will spill
     over into the overall mortgage market
  -- 55 percent believe the federal government should pass new legislation
     helping subprime borrowers keep their homes and avoid foreclosure

Overall, about 52 percent of consumers surveyed feel the average price of homes in their area will increase over the next year, while 29 percent believe prices will remain about the same. Eighteen percent of consumers expect that prices in their area will decrease.
Among homeowners, 50 percent believe that average prices will increase, while 32 percent feel they will stay about the same.
Consumer Credit Perceptions
In January and February of this year, the Experian-Gallup Personal Credit Index reached a new high at 105. Since then, consumer credit perception decreased to 87, before rebounding to 95 in July.

  Additional survey results on consumer credit perceptions include:
  -- 89 percent of consumers do not plan to apply for credit in the next
     three months
  -- 30 percent of households with annual incomes of less than $40,000 are
     uncomfortable with their debt burden, while only 16 percent of those
     with annual incomes of $75,000 or more are uncomfortable
  -- 17 percent of consumers know someone who has been turned down for
     credit during the past three months

"One of the key benefits of the Personal Credit Index is its ability to provide insight on consumer perception of the credit markets," said Dennis Jacobe, chief economist of The Gallup Organization. "Consumers are already decreasing their credit use. If regulators and the banks they regulate also decrease their credit use -- and longer-term interest rates go higher -- consumer credit purchases and the support they provide for the overall economy are likely to decline significantly in the months ahead."
About the Experian-Gallup Personal Credit Index
The Experian-Gallup Personal Credit Index is based on a monthly nationwide survey of households and measures four key areas related to credit: level of debt, monthly payment burden, credit rating and debt extension capability. The sampling was conducted in April, May and June 2007 and included 3,011 adults, age 18 and over, randomly selected from across the country. The sampling error is plus or minus two percentage points.
Experian Group Limited is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index.
Web site: http://www.experian.com/

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