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Credit card delinquency rate down in the U.S.

Credit card debt is one of the types of debt consumers sometimes hold. Problems with high debt, including high credit card debt, can have major impacts on consumers. Thus, it is worth keeping an eye on trends regarding credit card debt.

Recently, the credit reporting agency TransUnion revealed some interesting statistics about credit card debt in the U.S. The statistics regard the country's credit card delinquency rate in the second quarter of 2011. Reportedly, in that quarter, the delinquency rate was 0.6 percent. This is reportedly the lowest credit card delinquency rate the country has seen in 17 years.

Thus, it appears that we are seeing a drop in credit card delinquencies in the United States. What is causing this trend to occur? According to the USA Today article which reported this story, some factors that may be contributing to this trend include:

  • A general drop in household debt in recent years
  • Changes in consumer behavior regarding credit card debt
  • Changes in lender behavior regarding offering credit

This trend in credit card delinquencies gives rise to some interesting questions. Will this trend continue as 2011 progresses? If it does, how long will it ultimately continue? How long will the causes underlying the trend continue? What short-term and long-term impacts will this trend and its causes have on consumers in Florida and the rest of the country? What effects will this trend and its causes have on the economy as a whole? One wonders what the answers to these questions will be.

Source: USA Today, "More consumers paying credit card bills on time," Sandra Block, Aug. 16, 2011

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