Default rates declined in April

American consumers are adjusting their spending habits in the wake of the Great Recession. The latest numbers from the S&P/Experian Consumer Credit Default Index showed that the overall composite default rate dropped to 1.42 percent in April from the 1.5 percent mark registered in March. It also shows a year-to-year decrease, as the April 2012 default rate was 1.86 percent.

"Consumer financial condition continues to improve", says David Blitzer, an official with S&P Dow Jones. "Continued improvements in the economy and declining consumer debt are resulting in lower consumer default rates for mortgages and automobiles."

The development may be good news for short term lenders and other loan providers as the U.S. consumer base appears to be monitoring credit spending more. Lower default rates represent a lower risk for lenders.

Even with the reduction in credit lines, Americans are still spending, experts say. The Associated Press recently reported that a survey from the National Association for Business Economics found that economists believe that consumer spending will increase by 2.3 percent in the coming year.

In February, economic forecasters stated that they expected just a 1.9 percent jump in spending, according to the AP.