Thursday, October 28, 2010

On Time Credit Card Payments Increasing

Pat yourselves on the back America. According to a report from the AP, more Americans are paying their credit card payments on time, a sign that the economic recovery is beginning to take hold on main street.

Reports from major credit card issuers like Bank of America, Capital One, Discover and American Express all showed small declines in delinquency rates in March from February.  Delinquency refers to when payments are received over 30 days late.

Despite the good news the data on charge-offsthe amount banks write off because they assume they will never receive payment, is more mixed, with some banks having to write off and some less.  In 2009, banks wrote off a record $83 billion dollars of debt.  But the consistent rising of on-time payments mean that write-offs will likely trend downward as the year progresses.

via the NYTimes.

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