Paying off debt

American consumers are starting to pay down their debt.

Banks make most of the country's loans, and they indicate that fewer consumers are late on their credit card and mortgage payments these days.

Third-quarter results show that people are catching up on their loan payments, USA Today reports.

Bank of America cited a $146 million decrease in home equity loans on which customers were more than 90 days late with their payments. Wells Fargo's loss rate on its credit card portfolio dropped from 11.6 percent of loans to 10.9 percent.

Although banks are still absorbing large loan losses, the numbers are "leveling off," according to USA Today.

Jamie Dimon, CEO of JP Morgan Chase, said: "There seems to be stability in the environment in terms of consumer spending ... that could be forming the base of a recovery."

Losing a job was the last straw for many people who were already struggling to make house payments. Yet as new unemployment claims taper off, more people should be able to stay abreast of their obligations.

That translates to more upbeat economic news.