Consumer credit delinquencies fell in seven of 11 loan categories in the third quarter, according to the ABA Consumer CreditDelinquency Bulletin. This is a good co-indicator pointing forward that suggests P2P and social lending are becoming safer, more widely-accepted platforms for financing.
Bank card delinquencies were stable, rising just three basis points to 3.25%. That was well below both the 3.64% registered in 2010’s third quarter and the 15-year average of 3.94%.
“Household debt levels continue to fall and are getting easier to manage. Subtle improvements in the economy such as lower gas prices and a better job market have reduced some of the stresses facing consumers,” ABA Chief Economist Jim Chessen said.
“Improvement in delinquencies over the next year hinges on the housing market, which still poses an enormous challenge to continued economic growth. Job creation and income growth are also a must if we hope to see delinquencies continue to fall,” he said.