Many Americans may be witnessing improved personal finance situations, as consumer debt delinquencies dropped noticeably during 2011, according to credit rating company Equifax.
The company's December National Credit Trends Report showed that residential mortgage delinquencies for declined by 13 percent. The figure was for all first mortgages past due by 30 days or more. In addition, Home Equity Installment delinquencies of more than one month dropped by 10 percent. Home Equity Revolving loans which had payments overdue by 30 days or more dropped 7 percent.
"More than 63 percent of all past due balances are from loans originated between 2005 and 2007, and as the industry continues to isolate and manage those vintages, I would expect to see continued improvement in delinquency rates as a result," said Michael Koukounas, senior vice president of analytics for Equifax.
Continued declines in personal debt delinquencies may mean positive things for the lending industry, as this likely signals consumers' credit scores are increasing and their personal finance situations are stabilizing. This could mean they are more likely to not only apply for a residential mortgage, but are more likely to obtain one.