The Gallup Organization (public opinion research) and Experian (credit reporting agency) have joined forces to create a monthly report on consumer confidence in relation to credit and debt called the Experian-Gallup Personal Credit Index.

Through their monthly survey examining consumers’ perceptions of their level of debt, burden of monthly payments, credit rating, and future borrowing, these organizations intend to provide up to the minute information on consumers’ attitude about credit and their use of it.

So what does the first installment of the Index tell us? You may be surprised to find that much of the general public is not aware of personal financial information you think would be common knowledge.

First, nearly half of those surveyed have never check their credit report. Seventy percent are unaware of the impact their credit score and credit report has on their ability to land a job, while 56 percent are unaware of the connection between their credit score and the insurance rates they are offered.

Not surprising, the first Index report indicates that we are optimistic about our future credit situation, even more so than our current situation, especially our ability to reduce our debt load.

While 3 out of 4 of us feel confident about our ability to keep up with our current payments, 1 in 5 state they are already cutting back on spending in response to rising interest rates. Particularly at risk today are those with variable rates that raise or lower according to set standards, such as the Prime Rate. Variable rates can be found on credit cards, mortgages, and home equity lines of credit. And while many consumers claim to have only fixed rates, lenders claim there are many loans and credit accounts with variable rates out there.

Will you be surprised with a rate increase? Would your budget be able to handle increases to your monthly payments? Don’t be caught napping; stay prepared by checking your credit account terms today.

Above all, remember, if you find yourself in need of help, Credit Advisors Foundation is just a phone call away.