Debt Relief's mission is to help consumers know the debt relief options available to them. Begin online

A fast and easy way to get your debt relief evaluation and savings estimate.
Answer a few simple questions online.
Get your free debt relief evaluation.
See how much debt relief could save you!'s mission is to help consumers know the
debt relief options available to them. Begin online

Or phone

Default Rates Decline Across All Credit Sectors

Share this on:

Fewer consumers defaulted on loan obligations in September, report shows Despite conflicting reports about the creditworthiness of Americans, the most recent report conducted by the Standard and Poor's Index and Experian shows September default rates have declined across all lines of credit.

The overall default rate dropped to 3.13 percent, a decline from 5.31 percent recorded in August. Bank cards showed a significant decline falling to 7 percent, a monthly change of 10.53 percent. Auto loan defaults fell to 2 percent, a modest change from 2.1 percent in August.

"The S&P/Experian Consumer Credit Default Indices are showing declining default rates at the national level for all categories, including auto loan defaults which had risen over the previous two months," S&P Indices Director Craig Feldman said. "All five of the highlighted cities are showing declines as well, with Miami and Los Angeles continuing to show the largest year-over-year drop in default rates, as has been the trend for the last three months."

While the decline in the national default rate indicates a positive sign for Americans, banks and lenders continue to write off large amounts of uncollectible debt from their books. Most financial analysts say high charge-off rates suggest Americans may not be paying down as much of their debt as previously thought.

Timely articles written by the Editors at DRC