S&P/Experian July Report: More Americans Relying on Debt, Defaults Rising

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S&P/Experian Consumer Credit Default Indices on the Rise in July

Standards and Poor’s and Experian have jointly released the report for consumer credit defaults for the month of July, which illustrates a rising trend in delinquencies.

The jointly-prepared report, which comes out every month, depicts the monthly trend in four categories of consumer loans—bank cards, auto loans, first mortgage lien, and second mortgage lien. A composite index for the four categories is also reported to show an overall trend in consumer credit defaults.

The latest composite reported for the four S&P/Experian Consumer Credit Default indices for the month of July depicted a rising trend. The composite edged up one basis point from the last month.

Separately, three categories of consumer debt—that is, auto loans and first and second mortgage loans—showed an increase in default rates through the month of July.


During July, auto loan defaults increased by four basis points, first mortgage default rates jumped up two basis points, and second mortgage default rates spiked by one basis point, from a comparable period in June.

Apart from auto and mortgage default rates, the fourth category of bank credit defaults also remained significantly high. The national bank credit default rate was reported at 3.31% in July, which was a decline of 18 basis points from the previous month of June. However, the bank credit default rate has gone substantially high from just a year-and-a-half ago, when it was reported at 2.49% in December of 2015.

The S&P/Experian indices also report city-wise data. Out of the five major cities covered in the data, two showed an increase in their default rates.

Dallas reported the most significant jump in credit default rates by 10 basis points. Following it was Miami, which witnessed a six-basis-point jump in July default rates compared to the previous month.

The report also identified that a growing number of American consumers are using credit to make purchases. In the past one year, which ended in June 2017, outstanding consumer credit increased by 5.7%.

Overall, the total American consumer credit is currently reported to be at all-time highs.

The trend depicted in S&P/Experian’s indices coincides with the Fed’s report, which came out the same day and points out that American household is rising, along with credit delinquencies.



S&P/Experian Consumer Credit Default Indices Show The Composite Default Rate Remained Low In July 2017,” PR Newswire, August 15, 2017.


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