This is good!
By Greg Robb, MarketWatch
WASHINGTON (MarketWatch) -- Lower gasoline prices have made it easier for consumers to manage their debt, with delinquencies hitting a record low in the latest survey released by the American Bankers Association Thursday.
In the third quarter, 1.51% of ABA-tracked accounts were at least 30 days late on a payment, compared with a 15-year average of 2.35%. This is the lowest level for the series that goes back to 1974 and tracks debt in eight categories, such as personal debt and home-equity loans.
"Consumers are smiling every time they fill up their tanks," said James Chessen, ABA's chief economist, in a statement.
In the third quarter, the average price per gallon for all grades fell 32.4 cents to $3.38, according to government data.
"Every one-cent decline in pump prices puts about $1 billion back into consumers' pockets, which means their paychecks are going much further," Chessen said.
Also read: Americans saved $14 billion as gas prices fell in 2014
Bank-card delinquencies bucked the trend and rose slightly to 2.51% of all accounts. Still, it remains well below the 15-year average of 3.77%. The rate of bank-card delinquencies has varied only by 14 basis points since the fourth quarter of 2012.
| 