The percentage of consumers behind on their loan payments fell in the third quarter to the lowest level in nearly a decade, a trade group said this week.
A seasonally adjusted 1.95 percent of consumer loans were 30 or more days past due at the end of September, down from 2.06 percent three months earlier and 2.46 percent a year ago, the American Bankers Association said.It was the sixth consecutive quarterly drop in the delinquency rate and the lowest since June 1984.
"Delinquency rates are reflecting improvements in household financial strength that have been percolating for several quarters," said James Chessen, the association's chief economist.
The eight types of loans included in the composite delinquency rate are: auto loans made directly by banks, auto loans purchased by banks from other loan originators, personal loans, second mortgages, home improvement loans, recreational vehicle loans, mobile home loans and boat loans.
By state, rates varied from lows of 0.74 percent in Florida and 0.98 percent in Arizona to a high of 4.26 percent in New York.
The report also showed that the delinquency rate for bank credit cards - which are not included in the composite rate - edged up to 2.66 percent from 2.63 percent three months earlier.