Tabs

Tuesday, October 7, 2014

Consumer Delinquencies Fall Nearly Across the Board in Second Quarter

Delinquencies declined nearly across the board in the second quarter, falling in nine out of 11 categories as the economy improved and consumers responsibly managed their finances, according to results from the American Bankers Association’s Consumer Credit Delinquency Bulletin.

The composite ratio, which tracks delinquencies in eight closed-end installment loan categories, fell 6 basis points to 1.57 percent of all accounts – a record low that is well under the 15-year average of 2.32 percent. (See Historical Graphic.) The ABA report defines a delinquency as a late payment that is 30 days or more overdue.

“Strong job growth, rising income, low interest rates and falling debt levels have led to consumers having a greater capacity to repay debt,” said James Chessen, ABA’s chief economist. “Consumers have made great strides since the recession, with a focus on deleveraging and disciplined financial management that has kept debt levels under control.”

Read the full release. See economic charts.

No comments:

Post a Comment

Please read our comment policy before making a comment.