Consumer Credit Default Rates Near Post-Recession Lows in August

September 24, 2012, Written By Bill Hardekopf
Consumer Credit Default Rates Near Post-Recession Lows in August

The August 2012 S&P/Experian Consumer Credit Default Indices showed that default rates continue to decline for most loans, including the national composite, which has now declined for eight consecutive months.

Most of the loan types posted their lowest rate since the end of the recession.

Bank card defaults dropped to 3.77 percent in August from 3.83 percent in July. This is the lowest default rate since February 2007.

The first mortgage default rate dropped slightly to 1.40 percent in August from 1.41 percent in July. The second mortgage default rate fell to 0.72 percent, the lowest point in its eight-plus year history.

The auto loan default rate increased to 1.09 percent in August from 1.01 percent in July.

Lower default rates indicate that consumers are paying down their debts and possibly doing better financially.

The information contained within this article was accurate as of September 24, 2012. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.

About Bill Hardekopf

Bill Hardekopf is the CEO of and covers the credit card industry from all perspectives. Bill has been involved with personal finance for over 15 years. He is a frequent contributor to Forbes, The Street and The Christian Science Monitor.
View all posts by Bill Hardekopf