The US’ national credit card delinquency rate
has decreased for the sixth consecutive quarter to 0.6%, the lowest
mark observed for 17 years.
Information and risk management firm
TransUnion has revealed in its quarterly analysis that credit card
debt per borrower increased slightly by $20 in Q2 to $4,699 though
it still remains near record-low levels. This is believed to be due
to consumers tightening their spending and having better control
over their credit card payments.
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“TransUnion believes that the recovering
economy is only indirectly impacting delinquency rates,” said Ezra
Becker, vice president of research and consulting in TransUnion’s
financial services business unit.
“More important and impactful to the decline
in bank card delinquency are that consumers are using credit cards
more responsibly and a large number of delinquent accounts have
moved to charge-off status.”
Delinquency rates are improving more than at
any other time since the economic recovery began in 2009. They have
improved on a quarter-on-quarter basis by 18.% and by 34.8% on a
year-on-year basis. TransUnion expect credit card borrower
delinquency rates to continue to decrease for the remainder of 2011
as the economy continues to recover and financial institutions
maintain a conservative approach to lending.
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