• 25
  • August
    2010

In these tough economic times of high unemployment and the collapsing housing market, consumer credit card debt is decreasing in the U.S. According to an article by the Associated Press, the average combined debt for bank-issued credit cards is now $4,951 for the three-month quarter ending June 30. One year ago, credit card debt was more than 13 percent higher, at $5,719.

As reported by the AP, the TransUnion credit reporting agency said it is the first time since 2002 that the credit card debt average fell below $5,000. The AP also reports that more cardholders made payments on time with fewer delinquencies reported. The delinquency rate is now below one percent for the first time since the recession began. Florida had the second-highest delinquency rate in the country, at 1.24 percent of cardholders defaulting on their card debt.  

TransUnion believes that in the uncertain economic climate, consumers are working to pay down their debt and keep their cards in good standing, as well as avoid or improve bad credit ratings. TransUnion also believes that the foreclosure crises is actually lowering credit card debt because consumers who cannot make their mortgage payments might be putting that money instead toward paying down their credit card balances.

Source:

Credit card debt drops to lowest level in 8 years (The Associated Press)