Americans are seeing the wisdom of getting out of debt as more and more consumers are reducing their credit card debt and paying their bills on time. During the second quarter of 2010 the average combined debt for bank-issued credit fell to $4,951, a reduction of more than 13 percent from $5,719 in the same period a year ago, according to TransUnion.
Trans Union said it was the first three-month period during which card debt fell below $5,000 since the first quarter of 2002.
The rate of cardholders past due by 90 days or more fell to 0.92 as more cardholders paid their bills on time. That’s the first time the delinquency rate has been below 1 percent since the second quarter of 2007, before the recession. The rate fluctuates during the year, but the improvement is more evidence that consumers are working to make sure their credit cards remain in good standing.
TransUnion predicts that the national delinquency rate will remain below 1 percent for the rest of the year.
