NEW YORK — According to the S&P/Experian Consumer Credit Default Indices, the auto loan default rate dropped from 1.45 percent in April to 1.34 percent in May.

Moreover, first and second mortgage default rates decreased in May to 2.09 percent and 1.42 percent, respectively, from April values of 2.16 percent and 1.51 percent. As for bank cards, they experienced a slight increase in defaults from 5.91 percent to 5.93 percent.

"While we might observe volatility from month-to-month, looking at default rates over the past few years, it is easy to see that consumers have come a long way in fixing their balance sheets," explained David Blitzer, managing director and chairman of the Index Committee for the S&P Indices.

"All indices show default rates below where they were this time last year, and more so if you look back to 2008/2009," he continued.

He also pointed out, "We do continue to see some differences among the cities. While Miami's high unemployment rate contributes to its high default rate compared to some of the other cities, such as New York and Chicago, it is not the only variable."

Blitzer went on to say that the latest metropolitan statistical area-level unemployment data shows that at about 11 percent, Los Angeles and Miami have unemployment rates higher than the national average. However, he stressed that the 2.39 percent default rate for Los Angeles is almost half of Miami's 5.31 percent rate.

"Among the other local factors affecting default rates is the aftermath of the housing bust. While both Los Angeles and Miami were among the cities with the largest home price increases, housing in southern California is doing better than housing in south Florida," he said.

Ultimately, Los Angeles and New York continue to show the largest decreases in default rates to 2.39 percent from 2.57 percent and to 1.94 percent from 2.11 percent, respectively.

Chicago and Miami were not far behind with defaults decreasing to 2.37 percent and 5.31 percent.

Meanwhile, as for Dallas, its default rates increased a bit for the month to 1.59 percent from 1.56 percent.

Breakdown of auto loans defaults without any seasonally adjustments or revisions:

May 2011: 1.34 percent

April 2011: 1.45 percent

May 2010: 1.76 percent