Tuesday, August 16, 2011

Credit Card Delinquency Down to 17 Year Low

Sure, Wall Street was to blame for the recession, but if people hadn't used their homes like ATM machines, if they hadn't gotten so deep in debt trying to keep up with their neighbor, the recession might not have been so bad or we might not have had a recession at all. But here's some good news, people are paying off their credit cards.
Consumers choosing to spend more responsibly drove the credit card delinquency rate down to 0.6% at the end of the second quarter, the lowest level in 17 years, according to TransUnion.

"National credit card delinquency rates have fallen to levels not seen since 1994 as consumers continue to tighten their spending," said Ezra Becker, vice president of research and consulting in TransUnion's financial services business unit. "More important and impactful to the decline in bank card delinquency are that consumers are using credit cards more responsibly; a large number of delinquent accounts have moved to charge-off status; and lenders remain conservative in their underwriting." Marketwatch