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America seems to be going through a positive shift - with the lowest level of subprime credit scores in more than a decade, a decrease in debt burden and the lowest level of defaults since 2004. US consumers seems to be more aware and concerned about their financial wellness. So although there has been a rise in the amount of loans taken, hopefully consumers will be smarter than in the past about paying off loans in a timely manner and refraining from accumulating debt they cannot cover.
Meanwhile, as credit scores are rising, defaults are near record lows. Some 0.81% of consumer loan dollars—including mortgages, auto loans and general-purpose credit cards—were in default as of May, the lowest level in records going back to 2004, according to the S&P/Experian Consumer Credit Default Composite Index. This is down from 0.88% a year ago and a peak of 5.51% in May 2009. Much of that improvement is due to plummeting mortgage defaults in recent years. “People are putting those delinquencies further and further in the rearview mirror,” said Ethan Dornhelm, senior director of scores and analytics at FICO.
http://www.wsj.com/articles/consumers-improving-credit-scores-give-banks-reason-to-cheer-1466587801
