Default Rates Continue to Fall in September

by San Antonio Attorney

Default rates of several products on consumer credit continue to fall in the past few months, according to Experian.

Experian and S&P Dow Jones Indices said the default rates of a number of consumer loan types declined in September, which is the ninth month of the consistent declines.

Survey shows that four out of five types of loan have the lowest default rates since the end of the 2007 to 2009 recession.

According to S&P Dow Jones Indices’ David Blitzer, they believe that this year has proven to be a time of financial recovery for consumers. The financial condition of consumers has consistently improved based on the decreasing rates of credit default.

These are the results of default rate in September:

Bank credit card fell to 3.70% in September from 3.77% in August.

First mortgages fell to 1.36% in September from 1.40% in August.

Second mortgages fell to 0.64% in September from 0.72% in August.

The composite index dropped to 1.46% in September from 1.50% in August.

Auto loan increased to 1.11% in September from 1.09% in August.

The only default rate that increased was the auto loan, but it is still a good number since the lowest rate for such loans was 1.01% in July, Blitzer said.

Default rates of the other credit consumer products all hit new post-recession lows, according to Blitzer. The first mortgages have a decreasing default rate for nine consecutive months, he added.

In April 2010, the bank card default rate soared at 9.15%, while last month it was 3.7%. The default rate of first mortgages was 5.67% in May 2009, while last month it was 1.36%.

–  When it comes to debt problems, it is always best to ask for help as early as possible. San Antonio Attorneys ca help you resolve your debt woes.

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