U.S. consumers have been more punctual than ever before in paying back debts as the economy recovers from the pandemic.
Consumer debt delinquencies fell to 1.21% in the second quarter, according to a report by the American Bankers Association. That has been the lowest level since 1993 since the organization started collecting data
Delinquencies changed in nine of the 11 categories tracked by the ABA. The delinquency rate for bank-issued credit cards fell in the first quarter to a record 1.38% from 2.05%, the report shows. The percentage of consumers who couldn t repay home equity loans fell to 3.42%, while the rate for bank-issued auto loans decreased to 1.45%.
Consumers Financial health generally strengthened in the second quarter due to robust jobs recovery and another round of federal stimulus payments, said Sayee Srinivasan, ABA's Chief economist and Head of Research, in a statement. Consumers have remained focused on keeping credit card balances manageable and spending within their means. Still, the pandemic remains a significant economic factor to watch, according to the statement. The delta variant has added volatility to the economy and many consumers continue to struggle, Srinivasan said.