S&P/Experian: May Consumer Defaults Down Broadly

15th Jun 2010 14:45

DOW JONES NEWSWIRES Consumer-default rates fell in May from a month earlier for all types of credit outstanding, with bank cards posting their first month-to-month decline since December, according to Standard & Poor's Ratings Services and Experian PLC (EXPGY, EXPN.LN). The ratings agency and credit-reporting company, respectively, launched indexes last month that track rates of default for four types of consumer credit lines. U.S. consumers' personal income has picked up of late, and consumers have been using the money to lift savings and repay debt. "The declines reflect continuing efforts by consumers to bring their debt levels down following the financial crisis and recession," S&P managing director David Blitzer said Tuesday. The bank-card default rate of 8.9% was down from 9.1% in April but up from 8% a year earlier. All other credit lines were down from a year ago as well. Second mortgages saw the biggest year-over-year drop in the default level, falling 45%. The first-mortgage default level fell 39%. Among the five major U.S. cities tracked in the report, Miami saw defaults ease the most, with the rate plunging 51%. In New York, it fell 24%, the smallest decline. -By Matt Jarzemsky; Dow Jones Newswires; 212-416-2240, [email protected] (END) Dow Jones Newswires June 15, 2010 09:45 ET (13:45 GMT)