It appears as though more people were able to pay off their mortgages and auto loans last month.
According to Experian and S&P Indices default rates for first and second mortgages declined 2 and 1 percent, respectively in June. Defaults for auto loans decreased marginally by approximately 0.05 percent.
David Blitzer, managing director and chairman for S&P Indices, said declining default rates is an encouraging sign.
"Default rates are continuing to decline across major consumer credit categories," said Blitzer. "This is a positive sign for an economy suffering from a lack of consumer spending."
Defaults didn't drop everywhere, however, as the report also detailed how consumers fared in various metropolitan regions. Chicago posted the most significant default rate increase, climbing from 2.37 percent in May to 2.59 percent in June. Other cities where consumers struggled with debt were Dallas and Miami.
Missing a mortgage payment or a developing a high level of debt is typically a recipe for a bad credit score, but a consumer's underwhelming three-digit number can often result from errant markings provided by creditors and others who report information to the credit bureaus. A credit repair company may be able to restore a consumer's score so it's back in healthy territory.