ACA Association of Credit and Collection Pro : CREDITORS: Consumer Credit Default Rates Stabilize

The latest data on consumer borrowing and debt released by S&P Dow Jones Indices and Experian show consumer credit default rates have stabilized.

The S&P/Experian Consumer Credit Default Indices, a comprehensive measure of changes in consumer credit defaults, shows the December 2015 composite rate remained at 0.97 percent, the same result from November, according to a news release from S&P and Experian.

The bank card default rate decreased 42 basis points in December, recording a default rate of 2.49 percent, according to the news release.

The auto loan default rate in December, 1.04 percent, also remained the same as November of last year. The first mortgage default rate increased two basis points to 0.84 percent in December, according to the news release.

'The consumer economy looks good,' David M. Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices in the news release. 'Consumer credit default rates are low and stable, and consumer sentiment measures are upbeat.'

Personal consumption expenditures increased 2 percent in 2015 (December to December) and spending on durable goods increased 4.8 percent during the same period, according to Blitzer.

He said 2016 started with a drop in stock prices on Wall Street as a result of the strong dollar and weak oil process.

'For consumers, both of these are good stories - cheap gas and lower prices on imports,' according to Blitzer. 'Other parts of the economy also favor consumer spending: the unemployment rate is down to 5 percent and the weekly initial unemployment claims reports signal further economic growth. Inflation remains low, lower than the Federal Reserve would like. Consumers aren't showing any signs of anxiety driven by the stock market.'

The S&P/Experian report also tracks default rates in major U.S. cities.

Three of the five major cities saw their default rates decrease during the month of December, according to the news release.

Los Angeles' default rate declined nine basis points from November to 0.65 percent and Miami's rate declined for basis points to 1.44 percent. The rate in Chicago also declined, by three basis points, to 1 percent, according to the news release. Rates in New York and Dallas increased by nine and 22 basis points, respectively. The New York rate in December was 1.04 percent and Dallas' was 1.10 percent.

Follow ACA on Twitter@ACAIntl and@acacollector orFacebook for news and event updates. ACA's LinkedIn Group includes news updates, member discussions, event promotions, jobs and more. Visit thegroup page and request to join today.