CHICAGO, IL, Nov 15, 2011 (MARKETWIRE via COMTEX) -- The national credit card delinquency rate (the ratio of borrowers 90 or more days past due) increased in the third quarter for the first time since the fourth quarter of 2009, edging upward to 0.71 percent. Average credit card debt per borrower increased $63 in the quarter to $4,762, though it remains near record-low levels. This information is reported by TransUnion and is part of its ongoing series of quarterly analyses of credit-active U.S. consumers, evaluating how they are managing credit related to mortgages, credit cards and auto loans.
The Q3 2011 TransUnion data released today show credit card delinquency rates rising from the historic lows of last quarter. "This is the first quarterly increase we've seen in almost two years," said Ezra Becker, vice president of research and consulting in TransUnion's financial services business unit. "Even so, we are still well below historical norms. In fact, we're at the second lowest delinquency rate nationwide that we've seen in the past 16 years.
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The increase in the credit card delinquencies should not come as a surprise. Five of the six largest U.S. issuers registered an increase for the same month (Citi being the only exception). The data from the next couple of months will tell us whether or not the delinquencies have bottomed out, but all indications are that they may have.
ReplyDeleteEven as the delinquencies have flattened, however, the total amount of credit card debt in the U.S. keeps falling. It is now at $790.1 billion, within the margin of error of the $789.8 billion mark reached in April, which was the lowest one in almost seven years. Moreover, the monthly payment rate on credit cards is now at 21.14 percent of the outstanding balances – 30% above the historical average of 16.3%.
So Americans are still very cautious with their credit cards and this is sure to continue to be the case for as long as the unemployment rate is in the stratosphere. http://blog.unibulmerchantservices.com/u-s-credit-card-delinquencies-up-but-still-near-record-lows