Consumer debt in Colorado above national average, but delinquency rate lower

Average consumer debt in Colorado, excluding first mortgages, was $18,816 during the third quarter, compared with $17,205 for the United States as a whole, according to the Federal Reserve Bank of Kansas City’s latest Consumer Credit Reports.

While consumers in Colorado may have more debt, the delinquency rate for consumer debt in the state was 3.2 percent in the third quarter, a decline of 0.1 percentage point. Nationally, the delinquency rate was 5.8 percent, a decline of 0.2 percentage point.

Average Consumer debt across the seven states of the Tenth Federal Reserve District that includes Colorado remained relatively steady at $16,105 during the third quarter, and continues to be below the national average.

“Across our Federal Reserve District, consumer credit delinquency rates have remained relatively unchanged at 4.1 percent, but are sharply lower than the peak at the end of 2010,” said Kelly Edmiston, senior economist at the Kansas City Fed. Auto loan balances during the recovery have increased, but delinquencies on these loans have declined. The delinquency rate on auto loans in Colorado in the third quarter was 9.7 percent for finance company loans and 3 percent for bank loans, according to the report.

“In terms of auto lending,” Edmiston said, “the data suggest a large share of auto loans was made relatively recently. In addition, because the average outstanding auto loan balance for the region has increased to $14,000, consumers may be purchasing more expensive vehicles, reflecting higher income and economic security.”

As the regional headquarters of the nation’s central bank, the Federal Reserve Bank of Kansas City and its branches in Denver, Oklahoma City and Omaha serve seven states: Colorado, Kansas, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri.

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