NEW YORK, Aug. 27, 2012 /PRNewswire/ -- The American economy has seen better days. In the past five years there have been more people avoiding paying their loans. This decision is not based on people not wanting to make payments on their loans. The decision has been made simply because they can't afford to make payments. Incomes went down and the unemployment rate has gone up. It looks like things are starting to change. More people are starting to pay off their loans.
The number one loan that was affected by late payments was auto loan. Today more people than ever are now making their auto loan payments on time. The percentage of Americans that are late on their car payments is the lowest it has been in at least 10 years.
The amount of Americans that were late on their car payments at this time last year was 25% higher. In the first quarter of this year, the amount of Americans that were late on their car payments was up about 8% from the year before. This huge growth can only mean one thing. The economy is starting to come back around and unemployment rate is slowly shrinking.
Banks are starting to approve auto loans again in record numbers. There are even some lenders that are now approving bad credit car loans as well. Loan comparison websites have seen a huge rush in traffic in just the past few months.
Mark, a representative for Loans.net has this to say about the flood of traffic.
"In just the past two weeks, we have seen the traffic to our website increase by as much as 30%. This is not the only statistical increase that we have seen either. We have also seen a record number of people applying for all kinds of loans including: personal loans, home mortgage loans, debt consolidation loans, and auto loans. The loan market is starting to show excellent signs of improvement again, we have also seen a huge increase in loan approvals. Banks are starting to become more comfortable with loan approvals again."
The fact that people are starting to spend money again is an excellent sign. The last six years have been a wild and scary ride for many people, but it looks like that wild and crazy ride might be coming to an end.