US consumers slowly digging out of debt
Friday, 6 January 2012
WASHINGTON, Jan 5 (Reuters): More consumers made their home equity loan payments on time in the third quarter of 2011 and a broad measure of consumer delinquencies fell to its lowest point in four years, according to data released Thursday by the American Bankers Association (ABA).
The group said consumers are making progress on digging out of debt.
"Subtle improvements in the economy such as lower gas prices and a better job market have reduced some of the stresses facing consumers," said ABA Chief Economist James Chessen.
The delinquency rate on home equity loans fell to 4.12 per cent of all accounts in the third quarter, from 4.38 per cent in the second quarter.
A broader delinquency measure, which includes eight categories such as payments on auto and personal loans, fell to 2.59 per cent in the third quarter from 2.88 in the second quarter, its lowest level since the third quarter of 2007.
But consumers fared worse in the third quarter in some categories measured by the ABA.
Credit card delinquencies edged up slightly to 3.25 percent in the third quarter from 3.22 per cent in the second.
The group said consumers are making progress on digging out of debt.
"Subtle improvements in the economy such as lower gas prices and a better job market have reduced some of the stresses facing consumers," said ABA Chief Economist James Chessen.
The delinquency rate on home equity loans fell to 4.12 per cent of all accounts in the third quarter, from 4.38 per cent in the second quarter.
A broader delinquency measure, which includes eight categories such as payments on auto and personal loans, fell to 2.59 per cent in the third quarter from 2.88 in the second quarter, its lowest level since the third quarter of 2007.
But consumers fared worse in the third quarter in some categories measured by the ABA.
Credit card delinquencies edged up slightly to 3.25 percent in the third quarter from 3.22 per cent in the second.