Consumers still reducing credit card debt on time
The rate at which consumers fall behind on their credit card debt payments continues to drop, as do consumers’ balances on those cards.
New data from the nation’s six largest credit card lenders shows that delinquency rates dropped once again in the second quarter of the year and could continue to do so for some time more, according to a report from Reuters. Barclays Capital found that the delinquency rate – accounts 30 days or more behind on payments – for these institutions stood at just 2.35 percent of all balances, down from more than 6 percent at the start of 2009, when the recession was still ongoing.
This trend has also allowed consumers to slash their credit card balances considerably, the report said. Data from the credit monitoring bureau Equifax shows that borrowers have cut their obligations by more than $170.4 billion since October 2008, a decline of 22.7 percent.
Consumers who saw their credit standings take a tumble during the recent recession have largely been able to repair them by seeking debt relief options and generally being more conscientious in attempting to clear their balances.