(NEW YORK) — You might be better off than you think! Americans owe far less money than they did five years ago before the recession, and they are paying the bills at the best rate in years.
According to the latest survey by S&P Dow Jones Indices and Experian, most loan types saw a decrease in default rates. The national average has dropped for eight consecutive months.
“People are being far more disciplined than they used to be,” says top S&P economist David Blitzer. ”A big part of that drop has been mortgages but the decline in debt levels has not only been mortgages but has really been across the board.”
Auto loan default rates are close to record lows. “Those levels have really dropped down to where they were long before the financial crisis.” It’s a big change from the days of no-doc loans and other forms of unrestrained lending.
Copyright 2012 ABC News Radio
Jethro Mullen Ivana Kottasova and Patrick Gillespie, CNN
Aaron Smith, CNN Newswire
Sara Weber, Deseret News