Default rates for first and second mortgages, bank cards and auto loans decreased in June, according to a report released Tuesday by Standard & Poor's and Experian.
The report indicates consumers did a better job of paying off their debts last month. Bank cards saw the largest decline, falling from 5.93% to 5.69%, which is a positive sign - especially when coupled with a recent Federal Reserve consumer credit report (
"The Federal Reserve reported that revolving credit - which includes bank cards - rose in May for the first time since 2008. Combined with the improving default experience we are seeing this is a positive sign for an economy suffering from a lack of consumer spending," said David Blitzer, the chairman of the S&P/Experian Credit Default Indices.
First mortgage default rates fell from 2.09% to 2.02% and second mortgage default rates were down from 1.42% to 1.40%. The report said defaults on auto loans fell to 1.29%, down from 1.34% in May.
