More consumers now handling debt better

The rate at which consumers fell behind on their outstanding debt continued to decline in the second quarter of the year, leading to less credit risk nationwide.

Fewer consumers fell behind on their credit card debt and other lines of credit during the second quarter, leading the Credit Risk Index maintained by monitoring company TransUnion to fall 1.9 percent between the first and second quarters of the year. In addition, the new rating of 121.22 was also 5.04 percent lower than index during the same quarter last year.

"The lengthy, broad and steady decline in the Credit Risk Index, which reflects declines in consumer delinquency and debt levels, has placed the consumer credit market on a firmer footing," said Chet Wiermanski, global chief scientist at TransUnion. "This responsible use of credit has given some lenders confidence to ease lending standards and invest more in the acquisition of new credit customers."

In general, consumers have been more conscientious about paying their debts on time over the last year, leading many lenders to see steep declines in their rates of delinquency and default across most types of credit.