Especially in times when thanks to low interest rates, the numerous loan offers are quite tempting and thus lead to a verifiable increase in consumer behavior, it applies to those people who take out a loan hereby in a responsible manner.
This refers first and foremost to the timely payment of monthly installment payments. This indicator, known in professional circles as a repayment quota, is of considerable importance for the good functioning of the banking industry.
According to the results of the current debt compass 2016 of Credit Checker Holding AG, this repayment ratio remains at a very high level of 97.6 per cent (+ 0.1 percentage points) in 2015, with a gratifying 97.6 per cent. Exactly in this point, according to the latest information from Credit Checker Holding, consumers in US are thus extremely exemplary borrowers.
More than 90 percent of US citizens repay loans on the reference date
Accordingly, the Chairman of the Executive Board of Credit Checker Holding AG: “The credit behavior of US consumers is exemplary across all age groups: 97.6 percent of completed loans were repaid smoothly, which is again a pleasingly high level: at 90.7 percent, the proportion of consumers remains high While Credit Checker is only showing a positive trend towards higher credit balances and longer maturities, the constant level of new borrowing compared to the previous year shows that consumers are using their financing options in the current low interest rate environment Consumers before the loan application compare conditions much more frequently than before. “
Total installment credit is also declining
However, what is surprising given the persistently low interest rates in the 2016 Debt Compass survey is that the number of current installment credits at the end of 2015 has narrowed, albeit not significantly.
At the time of the survey, Credit Checker’s database contained a total of 17.3 million current installment credits for US citizens. This number of installment loans thus corresponds to a decline in loans in the market of 1 percent compared to the previous year.
All in all, Credit Checker recorded installment credit in 2015 for around 16 percent of all consumers included in the Credit Checker database. However, in view of the current interest rate situation, a significant increase in installment loans should be expected for 2016 – at least that is the unanimous opinion of numerous financial experts.
Trend towards higher sums and maturities in loans
The fact that the low-interest phase, which has been ongoing for quite some time, nevertheless has its effects on the current credit behavior of USs, is reflected in the points “Loan amount” and “repayment term”, because while the number of newly concluded loan agreements in 2015 remained constant at around 7.4 million.
The average amount of new loans taken up by US consumers in 2015 increased significantly. It rose to 9,552 USD (2014: 8,792 USD). The average maturity extended by a good six months to an average of 47.3 months.
In the US-wide average, the current loan obligations for each person in the Credit Checker database with at least one loan in 2015 totaled 10,039 USD. They thus increased by 318 USD or 3.3 percent compared to the previous year.