According to an Equifax’s December National Credit Trends Report, U.S. consumers were much more diligent about paying their debts in 2011, resulting in significant declines in delinquency rates among the majority of tracked lending sectors.
Not only did U.S. consumers do a better job of paying their bills on time in 2011, but total consumer debt declined to $11.1 trillion. This represents a nearly 11 percent decline in debt from its peak of $12.4 trillion in October 2008.
Most tracked lending sectors reported double digit declines in delinquency rates for 2011. Key findings from the report include:
- Bank Credit Card: As delinquency rates continue to improve, bank credit card issuers have loosened lending standards, and from January-October 2011, new bank credit cards increased 48 percent.
- Auto: Auto loan amount totals were on the rise with more than $30 billion in new auto loans originated in October 2011.
- Consumer Finance: Consumer finance 60+ days past due rates declined by 23 percent, while consumer finance loan originations were up by 5 percent—the first increase in three years.
- Mortgage: While home equity delinquency rates were better in 2011, origination rates continue to be down, with declines recorded for both the number of home equity loans originated and average loan amount.
- Retail Credit Card: The number of new retail credit cards originated between January and October 2011 increased by 7 percent.
- Student Loan: Through October 2011, the industry experienced three consecutive years of increases in the number of student loans originated.