According to the article, “People shed debt by choice and by force, reflecting a combination of the thrifty attitudes and tighter lending conditions that have defined the recession…33% of banks in the Fed’s loan officer survey reported tighter terms and conditions for approving consumer loans other than credit cards. None of the banks said they loosened credit standards.”

As we’ve said, financial institutions are reeling in credit lines and requiring borrowers to meet stringent credit standards.  Consumers also face higher prices, fewer choices and less competition as banks continue to consolidate. Now, more than ever, Americans need continued access to small-denomination, short-term credit.