Citi sees borrowers handle credit card debt better in December

Citi saw its rate of charge offs – credit card debt that has fallen so behind in payments they're deemed uncollectable – slip significantly in December, to 8.34 percent, according to a report from The Associated Press. That was a 22-month low, and down from 9.4 percent observed in November. The lender's peak default rate came in August 2009, when it was 12.14 percent.

Meanwhile, delinquencies – credit card debt 35 or more days past due – declined as well, to 4.44 percent from 4.71 percent in December, the report said. This was the lowest rate seen in over two years.

Consumers have made a greater effort to reduce their credit card debt in recent months, but the large declines in delinquency and default has also been attributed to fewer troubled borrowers having access to lines of credit.