A report released on Tuesday by Standard & Poor’s shows that consumer credit lines showed drops in defaults in the month of May. Bank card loan defaults dropped from 9.1 to 8.9 percent. First and second mortgages dropped from 7.2 to 3.4 percent and 2.9 to 2.4 percent, respectively. And defaults on auto loans dropped to 1.8 percent, lightening 10 basis points.
The report notes that the reason we’re seeing a decline in defaults is because consumers are making a concerted effort to bring down their debt levels after struggling through the financial crisis. (Market Watch)