Credit Card Charge Offs Fall

Posted by Meredith Dwyer on May 25 2011 @ 9:05 am

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Credit card charge offs fell during April. A recent report by Moody's Investors Service showed consumer charge offs dropped during the month of April, and the company thinks the trend could continue as consumers become more confident, according to Bloomberg.

The Moody's Credit Card Index saw the rate of charge offs fall to 7.16 percent in April, from 7.35 in March.

In addition, the company expects the drop to continue, according to the news source. In the next two months, the number is projected to reach 7 percent, and it could drop below 4 percent by the end of next year.

The Index also tracks delinquencies of between 30 and 59 days, the news source reported. Moody's report saw that rate drop to 0.88 in April, from 0.98 during the month of March.

Thirty-day delinquencies dropped for the 18th month in a row, and April's numbers stood at 3.53 percent, the news source added. During March, the figure was at 3.79 percent.

These numbers and subsequent predictions may be positive news for the economy, as consumers may be beginning to handle their credit card debt issues more effectively.

Timely articles written by the Editors at DRC

New government regulations in place for consumers in need of debt relief for credit cards and other unsecured debts.

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