New data shows huge decreases in default rates, and a couple of big U.S. city’s residents deserve a pat on the back
The graphic below represents default rates of a composite of different types of consumer loans, including auto loans, bank cards, first mortgages and second mortgages, as compiled by S&P Dow Jones Indices and Experian, for five U.S. cities.
From July 2011 to July 2012, Miami saw more than a 50 percent decrease in its residents’ default rates. In July of 2011, Miami’s default rate was at 5.37 percent — from there, it plummeted to 2.44 percent by June 2012 and continued to decrease to 2.39 percent by July 2012. According to the release, this is a post-recession low for the city’s consumers.
New York residents came in second for default rate decreases — from a rate of 1.8 percent in July 2011, to 1.49 percent one year later.
Of the various types of loans in the composite, bank cards had the most dramatic decline in defaults across the U.S., starting out with the highest rate at 5.64 percent in July 2011 and dropping to 3.83 percent in July of 2012.