Personal Finance

Credit default rates at post-recession low


Americans defaulted last month at the lowest rates since before the recession rocked the U.S. economy, according to a new report.

The national composite of default rates was 1.11 percent in April, the lowest rate since mid-2006, according to the S&P/Experian Consumer Credit Default Indices.

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"The prospect for further gains in economic activity and consumer confidence is good as shown by the continuing decline in consumer credit default rates," said David M. Blitzer, managing director and chairman of the Index Committee for S&P Dow Jones Indices.

"Neither the one-month uptick in consumer price inflation nor the Federal Reserve's winding down of its bond buying threaten either consumer default rates or overall economic activity," Blitzer said in a statement.

Compared to the year-ago period, national default rates for first mortgages, bank cards and auto loans were all lower. Second mortgage default rates ticked up slightly.