Fewer Consumers Late On Credit Card Payments
The number of consumers needing to seek credit card debt relief may soon be dropping due to in part to fewer of them being late on their monthly payments.
For the fourth month in a row, credit card delinquencies fell, according to Fitch Ratings Credit Card Index. Even though more consumers are paying their bills on time, the number of people involved in charge offs rose.
Fitch Ratings managing director Michael Dean said that "charge off rates have been holding steady at over 10 percent for a full year now so the pressure on U.S. consumer credit quality is still clearly evident. On the positive side, cardholder defaults have plateaued so some seasonal improvement should emerge as we head through the summer months."
It is expected that improvement in credit card charge offs and delinquencies of 60 days or more will be dependent upon the nation's unemployment rate, Fitch Ratings said.
If consumers fear they will fall behind on credit card payments, they should speak with their provider about the possibility of lowering the amount due monthly.