Delinquency Rates Fall Again

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In the credit markets it is not about how much debt there is but how well we are paying for it that matters. And, in a consumer economy, it is consumer delinquencies which matter most. If consumers are comfortable handling debt i.e., credit cards and consumer loans, then lenders will keep lending. Once lenders fear consumer defaults, the lending can nearly cease till lenders reassess, and tighten lending standards before extending additional credit.

Credit Card Debt and Consumer Loans are both trending lower and well below their respective economic levels that signaled fragile consumer finances in the past.

In the US, consumers are healthy financially and economic expansion is expected to continue.