Americans have been trimming their financial debts say experts watching the financial information, and it has been a nearly five-year trend they say.
A story from CBSnews states that home foreclosures dropped 31 percent last month from the same time a year ago and cite the foreclosure listing firm RealtyTrac Inc for that data.
Further the story reports that 2013 is "shaping up to have the lowest foreclosure rate in six years."
An interview with Jon Hilsenrath, chief economics reporter for The Wall Street Journal, explained the situation on "CBS This Morning" using the economic idea of "deleveraging," in which debt is paid down by selling assets.
"Americans have done something heroic, really, in the last five years. Faced with all of this debt after the housing boom, they've made a lot of progress on paying it down. Almost one-eighth of the household consumer debt got basically paid down or written off by banks in the last five years and we're seeing that in foreclosure rates ... the rate of [banks] repossessing homes is coming down because household finances are in better shape than they were a few years ago."
Online news website Reuters also noted mortgage balances falling further and stated that total consumer debt stood at $11.15 trillion in the second quarter, down 0.7 percent from the previous quarter. Further, Reuters stated:
"While U.S. student debt and auto loans rose, the country's post-recession deleveraging cycle appeared intact as household delinquency rates dropped to 7.6 percent in the three months to June, from 8.1 percent in the first quarter of the year."
The story quoted Andrew Haughwout, a New York Fed research economist:
"Although overall debt declined in the second quarter, households did increase non-housing debt, led by rising auto loan balances. Households improved their overall delinquency rates for the seventh straight quarter, an encouraging sign going forward."