Consumers catching up on credit card debt

Once again in June, the number of consumers who fell behind on their credit card payments declined for nearly all major lenders.

The number of delinquent and defaulted credit card accounts dropped to lows not seen in at least three years in June as consumers continued to get a better handle on their finances, according to the latest monthly report from Fitch Ratings. Charge offs fell for the third consecutive month and fourth in the last six, dropping to 7.29 percent of all balances, the lowest since early 2008.

In addition, delinquency – balances 60 days or more behind – fell to just 2.57 percent of all accounts, the lowest level seen since August 2007, while 30-day early-stage delinquency dipped to 3.33 percent, the report said. Late-stage delinquency was 36 percent lower than the rate observed in the same month last year.

The slowly improving economy has allowed many consumers to have an easier time when trying to get out of debt, giving them greater flexibility to stay current on their bills and make on-time payments.