People are staying on top of many types of loans better than they have in a long while, which is good news for consumers and the economy.
They say the number of people more than a month behind on bank-issued credit card payments is down to 2.75 percent – the lowest delinquency rate in 18 years. The 15-year average is 3.87 percent. Just four years ago, it was above 5 percent.
Delinquencies on property improvement loans, home equity loans, and home equity lines of credit dropped in the last quarter of 2012 for the first time in over a year. Auto and mobile home loan delinquencies were up slightly.
ABA chief economist James Chessen said, “While this conservative approach to credit may slow economic growth in the short-term, it portends stronger, more consistent growth in the future. The sharp decline in delinquencies reinforces the notion that the economic recovery has become more self-sustaining and is on a path to increased growth.”