Defaulted Credit Card Debt Still An Issue

A recent study on the prevalence of debt amongst credit card users showed some improvement overall, but consumers that feel confident about making more transactions could repeat the mistakes that led to financial troubles during the recession.

TransUnion, which conducted the study, recently found that credit card delinquencies decreased by 32 percent in 2010's fourth quarter. But a new resurgence in credit card use could spell danger if consumers do not learn from their mistakes.

"Taken together, the recent news on rising consumer spending, increased demand for durable goods, the drop in the personal savings rate, and increases in consumer confidence indicate that consumers may now be demonstrating a more optimistic view of their financial outlook - possibly willing to expand their credit card use," said Ezra Becker, vice president of research and consulting for TransUnion's financial services business unit.

A total of 33 states increased credit card debt averages in the fourth quarter, and the median debt for American account users is close to $5,000, according to The Washington Post. These may be signs of cardholders who are unable to handle their finances.