Consumers appear to becoming more capable of handling their financial burdens, according to data released yesterday by TransUnion.
The data shows that while the average debt per borrowers increased in four different types of credit category — auto loans, credit cards, personal loans, and mortgages — the serious delinquency rate declined in three of those groups during 2017.
“Consumers continue to gain access to more credit, and balances are generally rising at a healthy clip,” said Matt Komos, vice president of research and consulting at TransUnion, in a statement. “For the most part, consumers are paying their debts in a timely fashion, which has been especially evident for mortgages and personal loans. This is likely a result of the strong economy, which has helped consumers manage their personal balance sheets and build confidence.”
The number of credit cards has increased to 419 million at the end of 2017, up from 364 million three years earlier. The serious delinquency rate — defined as a situation where no payment has been received for at least 90 days — has increased to 1.87% from 1.48% in the same timeframe. Among the age groups with the highest jumps in delinquency rates are baby boomers (1946-1964) and members of the silent generation (before 1945).
The number of auto loans has increased by more than 14 million during the past three years, and now stands at just under 80 million, according to TransUnion. The serious delinquency rate has jumped to 1.43% from 1.19% during that span. There is nothing that points to “significant anticipated changes” in auto loan delinquency rates going forward, said Brian Landau, senior vice president and automotive business leader at TransUnion.
