Consumers reduced defaults on credit card debt in September

The rate at which all lenders wrote off credit card debt so delinquent that it was deemed uncollectable declined sharply from August to September, according to the latest Consumer Credit Default Indices released by Standard and Poor's and Experian. Altogether, defaults dropped 10.53 percent between the two months, to 7.04 percent. That figure was also 13.29 percent lower than the rate observed in the same period last year.

The report noted that cities such as Los Angeles and Miami have found large decreases in defaults, with those in the California city reducing their defaults by 13.8 percent in September, the second straight month in which it led the nation in drops. Meanwhile consumers in Florida saw charge offs decline 40.3 percent over the last 12 months.

Most lenders have reported that defaulted and delinquent credit card debt has declined in each of the last several months as consumers reduce spending and put more money toward paying their bills.