Tabs

Thursday, July 10, 2014

Bank Card Delinquencies Fall Significantly in First Quarter

Bank card delinquencies declined significantly in the first quarter, falling 16 basis points to 2.44 percent of all accounts as consumers continue to improve their financial situations, according to results from the American Bankers Association’s Consumer Credit Delinquency Bulletin. Delinquencies for bank cards are well below their 15-year average of 3.82 percent.



This news comes after ABA’s Credit Card Market Monitor found that an increasing number of credit card users are using their cards as a transactional tool rather than as a form of debt.

“Bank card delinquencies remain at surprisingly low levels even as credit card spending increases,” said James Chessen, ABA’s chief economist. “More and more consumers are using their credit cards as a payment vehicle, paying off or paying down their balances each month.”

Following two quarters of record lows, the composite ratio, which tracks delinquencies in eight closed-end installment loan categories, edged slightly higher in the first quarter, rising 4 basis points to 1.63 percent of all accounts - - well under the 15-year average of 2.33 percent. The ABA report defines a delinquency as a late payment that is 30 days or more overdue.

Chessen noted that consumers continue to responsibly manage their finances, and are better able to manage their debt as the economy improves.

Read the full release. See the economic charts.

No comments:

Post a Comment

Please read our comment policy before making a comment.