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.