After a slight uptick in problems in the month of January, consumers returned to being conscientious in their efforts to reduce debt in February, leading to fewer late payments and a slightly lower charge off rate for the nation's top six lenders.
Delinquent credit card debt decreased in the month of February for five of the nation's top six lenders as consumers returned to their post-recession borrowing habits after eschewing them slightly as a result of the holiday shopping season, according to a report from Dow Jones Newswires. Only American Express did not see fewer delinquencies, but it said that its late payment rate held steady.
However, when it came to balances that were so far behind on payments they had to be written off as uncollectable, half of those lenders – American Express, Discover and Citi – saw increases, the report said.
Instances of both delinquencies and defaults are still hovering near all-time lows as a result of consumers making greater efforts to cut their outstanding balances and use their credit cards more responsibly during and immediately following the recession.